E-bikes are becoming more visible on Pakistan’s roads these days but e-cars are still a rare sight. One of the reasons might be their cost as electric cars are cheaper to run but they are still expensive.

Abdul Hadi is the head of the National Institute of Electronics in Islamabad, who has converted his 2002 Suzuki Mehran into an electric vehicle.

He says that any old vehicle, including Bolan, Honda Civic, Alto, Cultus, can be converted into an EV through retrofitting or conversion kits. He says that so far, more than 20 vehicles have been converted into EVs in Islamabad.

Environment and Climate Change Director General Muhammad Asif Sahibzada says that there are more than 37m oil and gas-powered vehicles in Pakistan, including 28.7m petrol bikes, which are a major source of pollution. Installation or retrofitting of electric systems in old vehicles can play a significant role in curbing pollution, which is especially cost-effective for motorcycles. 

Cost of conversion to EV 

The transition of cars and light commercial vehicles to electric is already underway in many countries, including the US, Europe, Africa and India, due to which the global market for automotive conversion kits has exceeded $4.32bn. 

Abdul Hadi explains that the engine of an old vehicle is removed and replaced with an EV kit, then it is connected to the transmission and an electric motor and charging parts are installed in it. EV kits in Pakistan come from China and include a motor, motor controller, throttle, wiring, DC converter, battery management system, adapter plate, coupler and a charging socket. The battery pack is separate.

“We mostly use a 72-volt motor and a 180-ampere lithium battery. My car has a separate 12-volt battery for the headlights and horn. We have developed its motor controller and charging part ourselves. It does not have AC yet, for which a separate system is installed.”
According to Abdul Hadi, currently a new e-car costs at least Rs4m and covers 250km on a single charge, while an old car can be converted for just Rs700,000 and covers about 200km on a single charge.

However, EVEE Electric Scooter General Manager Noman Alvi says that most converted vehicles do not have a range of more than 150km and a top speed of 50km/h. Not only that, they do not have even air conditioners. 

Electrifying half of vehicles in next 15 years 

As per the targets set in the National Electric Vehicles Policy 2025-30, by 2030, 30pc of all new vehicle sales in the country will be New Energy Vehicles (NEVs) i.e. hybrid and electric vehicles, which will be increased to 50pc by 2040 and 100pc by 2060.

The policy states that there is a target of bringing 2m electric vehicles (EVs) on the roads by 2030, which can save more than $1 billion (two billion litres of oil). To achieve this goal, the government has decided to provide subsidy on EVs, which will be Rs65,000 for e-bikes, Rs400,000 for three-wheelers (e-rickshaws, etc.) and Rs15,000 per kilowatt (battery power) for four-wheeler EVs. 

In this regard, along with other incentives, the State Bank of Pakistan will launch green auto financing schemes, which will make EVs available on easy installments. It should be noted that an EV costs Rs8.40 per km, while it is Rs26 for petrol vehicles. So far, licenses have been issued to 61 companies to manufacture e-bikes and e-rickshaws, etc.

Under the new EV policy, the local production would reach 90pc in the next two years. 
Charging infrastructure for EVs is being strengthened, with 3,000 public charging stations to be set up by 2030. Forty fast chargers will be installed in the next six months and it will be mandatory for every petrol pump to install 10pc chargers.

Effects of e-bike, rickshaw subsidy scheme on pollution and import bill 

According to the data from the Sustainable Development Policy Institute (SDPI), the number of bikes and rickshaws/loaders is increasing by 11pc annually. A year ago, the country’s fuel import bill was $16.8bn, while the annual financial losses due to air pollution are estimated at $22bn. These figures show that measures related to motor vehicles are inevitable for environmental improvement. That’s why the government’s policy is more focused on shifting bikes and rickshaws/loaders to EV technology.

Nine billion rupees were allocated in the federal budget for the implementation of the national EV policy. Recently, the Economic Coordination Committee (ECC) has approved a five-year subsidy scheme under which 116,000 e-bikes and 3,170 e-rickshaws/loaders will be provided at a cost of Rs100bn.

In the first phase of the scheme, 40,000 e-bikes and 1,000 e-rickshaws/loaders will be provided to the people across the country, including Azad Kashmir and GB, out of which 219 bikes will be reserved for position holder students.

According to media reports, the loan limit for bikes will be Rs200,000 and the tenure will be two years. While the loan for rickshaws/loaders will be Rs880,000 and the tenure will be three years. The government will pay the markup on the loan, the applicant will have to deposit only 20pc of the amount in advance.

The quota for rickshaws/loaders will be distributed among the provinces in proportion to the population, while Balochistan will get a 10pc quota. Twenty-five percent of e-bikes will be reserved for women.

Retrofitting—cheapest way to switch to EVs 

Although the National EV Policy also proposed a subsidy per kilowatt of power for four-wheeler EVs (vans, trucks, etc.), these vehicles were not included in this subsidy scheme. 

Waleed Ahmed, information head of the Excise Department, Islamabad, says new EVs are being registered free of charge. According to the Excise Department, Islamabad, 1,930 e-bikes and about 2,000 other EVs have been registered in the federal capital so far, including e-rickshaws, loaders and four-wheeled vehicles. However, no converted vehicle has come for registration yet. 

Environmental expert Yasir Hussain says that more than 100 companies, including EV manufacturers, components and battery manufacturers, have been registered with the Engineering Development Board while a dozen companies are working on four-wheeled EVs. There are about 30 EV charging stations in the country and more are planned.

He believes that the cheapest way to switch to EVs is through retrofitting. Hybrid options can also be added to vehicles and people can use batteries in the EVs or run them on petrol if they want.

However, Noman Alvi believes that old converted vehicles cannot be compared with new EVs. It is a completely different category. A small new e-car is available for around Rs40m to 50m, which gives a range of 250 to 300km on a single charge.

Retrofitting can be dangerous 

The general manager of EVEE Electric Scooters emphasizes that if it is necessary to convert an old vehicle into an EV, then a sustainable battery management system (BMS) is very important, which ensures the safety, performance and durability of the battery. Similarly, lithium-ion phosphate batteries are very suitable for the climate here, which can withstand high temperatures and have a long lifespan.

He believes that in Pakistan, the work of converting old vehicles into EVs is being done by mechanics at workshops in Sargodha, Shahdara (Lahore) and other cities. This unorganised method does not take proper precautions and can lead to mistakes that can prove fatal. This seemingly simple process is quite complicated and should be done only by authorised institutions under clear standards. 

However, the DG Environment says that the government, the Ministry of Climate Change, Industries and Production, and the Pakistan Standards and Quality Control Authority are jointly developing a regulatory framework for EV conversion. 

Hussain Rizvi, EV manager at the Climate Action Center Karachi, believes that the assembly and manufacturing of EVs in the country is now moving in the right direction. The reduction in battery prices, improvement in technology, and the acceleration in sales of EVs are positive indicators for this industry.