EV rickshaw to localize

EV rickshaw to localize

Localization of Electric Vehicle (EV) rickshaws is expected to be launched in the coming months, aiming to reduce the price to around Rs400,000-500,000 per unit in the local market. This marks the first time in the country’s history that the localization of EV rickshaws will be initiated with the aim of lowering prices. However, imported Completely Knocked-Down (CKD) EV Rickshaw kits cost Rs1 million per unit in the local market.

Localizing more parts will significantly reduce import costs and bills, as importing CKD kits from China is challenging. This is because one container is stuffed with only 20 or 25 rickshaw CKD kits, and the transportation cost is high, making a fully imported rickshaw at Rs1 million unaffordable for local rickshaw drivers.

Well-placed sources in the market have indicated that four to five Lahore-based companies specializing in EV rickshaws will soon come up and launch their products. Representatives of Chinese branded companies have come to Pakistan and have engaged in discussions with the local auto industry to finalize an agreement. By the end of this year, EV rickshaws may be operating on the country’s roads.

Market experts have already emphasized the need to localize the maximum share of the local automotive industry to protect the struggling sector and provide end users with greater benefits in terms of quality and price.

The Pakistan Automotive Manufacturers Association (PAMA) has reported a decline in sales of all vehicles, except for a notable increase in farm tractors recently.

According to Vehicle Sector Expert and Analyst Muhammad Sabir Sheikh, the EV industry represents the ultimate future of the country, as fewer and fewer people are willing to invest in fuel-driven cars, motorcycles, or rickshaws. He noted that customers are gradually shifting towards EVs, in line with the increasing trend observed in modern countries.

“It is quite easy to assemble the rickshaw, with many components, such as the main body, frame, chassis, front and rear shocks, easy to make. Meanwhile, the motor controller, motor and EV rickshaw battery can initially be imported until the entire technology is transferred. In addition, these EV rickshaws will be equipped with solar panels on their roofs to facilitate daytime charging,” he said.

Sheikh added that, “Several companies specializing in three-wheelers have imported several EV rickshaw CKD kits for successful test drives. Nevertheless, once these rickshaws are marketed and sold, there will be a demand for thousands of units due to their maintenance-free nature. Ultimately, drivers will be able to cover the cost of EV rickshaws.”

Auto Analyst and IBA Assistant Professor Dr Aadil Nakhoda stressed the need to first understand what is meant by ‘localisation’.

“We must ensure that local players are competitive at the global level, not just in the country. High tariffs and protections do not help because they end up shifting the cost of inefficiency to consumers. Second, localization without a technology transfer agreement can lead to the dumping of low-quality and less efficient technology as it becomes obsolete in other countries. We require quality inspection, certification and inspection requirements against tariffs and import restrictions. The purpose of all policies must be to protect the rights of consumers, who should have access to the best quality products at the lowest possible prices. Finally, localization needs to be analyzed throughout the supply chain, as some local suppliers may depend on imported inputs and may import at a higher cost than what is available,” said Nakhoda.

He added that all localization policies, if pursued, should aim to develop a competitive sector. It is better to invest in business capabilities and improve facilities than to prioritize short-term profits.

About Kepala Bergetar

Kepala Bergetar Kbergetar Live dfm2u Melayu Tonton dan Download Video Drama, Rindu Awak Separuh Nyawa, Pencuri Movie, Layan Drama Online.

Leave a Reply

Your email address will not be published. Required fields are marked *