EV dealers are asking for incentives

EV dealers are asking for incentives

Out of a total of 34 two- and three-wheel Electric Vehicle (EV) brands, nearly 20 have introduced newer models, catering to all age groups. Sales volumes have improved following a lackluster period during Ramadan.

The Engineering Development Board (EDB) has granted licenses to 34 EV bike companies, including those that manufacture electric rickshaws. While all are operational, 20 have displayed their units in showrooms, attracting local customers to well-decorated and well-maintained spaces that showcase more attractive, comfortable and up-to-date models.

EV dealers explain that they assure customers that they will not experience any regret or disappointment after buying an EV bike. They often chant the slogan “Mehnga Roye Ek Baar, Saastaa Roye Baar Baar!” (Expensive items may sting during purchase, but cheap products can cause persistent headaches.)

In a blink of an eye, people may understand the main difference between the two types of motorcycles. Unfortunately, however, the fuel-powered motorcycle market leader has planted serious misconceptions in the minds of customers regarding higher costs, poor local road infrastructure, a lack of qualified EV technicians and the absence of electric stations.

“People are moving from gas bikes to EVs just like they did from basic mobile phones to smartphones. Chinese branded EV bikes cost between Rs155,000 to Rs360,000 per unit, while Japanese fuel bikes range from Rs157,000 to Rs550,000. Chinese fuel bikes are gradually disappearing from the market. Apart from that, EV sports models, luxury and heavy bikes are displayed in various showrooms, priced from Rs550,000 to Rs1.25 million. The appeal of EV models and inflation have reduced fuel motorcycle sales, including Honda by 15%, Suzuki by 30%-40%, Yamaha by 50%, and various Chinese fuel bike brands up to 90% in the local market,” said Sector Experts Auto and dealer Muhammad Sabir Sheikh.

He mentioned that individuals who lead regular lives prefer EV bikes for their low maintenance needs. However, many careless motorcyclists still gravitate towards fuel motorcycles, despite the high maintenance costs. EV companies offer technical support at customers’ homes if the bike runs into problems. Otherwise, EVs require no maintenance, fuel, oil or filters.

He emphasized the importance of localization in the EV industry as EV volumes increase.

Leading Auto Sector Analyst Mashood Khan explains the need for the government to provide incentives to stimulate the EV market. He suggested allowing phased short-term imports of Completely Knocked-Down (CKD) kits or Completely-Built-Up (CBU) units and implementing easy installment plans through commercial banks or other strategies.

Addressing the challenges of this emerging industry, he pointed out that a long-term policy to import kits could reduce foreign exchange reserves. Additionally, poor road infrastructure may pose challenges for EV adoption. He emphasized the importance of implementing localization policies for technology transfer and urged the government to establish R&D (research and development) centers to drive innovation in the EV industry, citing China’s success in this regard.

Furthermore, he emphasized the need to improve road infrastructure, ensure a stable electricity supply without fluctuations, and create charging station infrastructure, especially since a large proportion of the city’s population lives in vertical housing arrangements where charging EV bikes may pose additional challenges.

Regarding market dynamics, he noted the significant demand for fuel motorcycles, exceeding two million units per year. He acknowledged the uncertainty surrounding the EV industry’s share of the market but emphasized that EV motorcycles offer advantages despite the initial cost, which can be reduced through a localization strategy.