EV dealers are asking for incentives

KARACHI:

Out of a total of 34 two-wheeler and three-wheeler electric vehicle (EV) brands, nearly 20 have introduced newer models, targeting all age groups. Sales volumes have improved after a miserable 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 functional, 20 have showcased their units in showrooms, attracting local customers to well-decorated and well-maintained spaces that showcase more attractive, comfortable and modern models.

EV dealers explained that they reassure customers that they will not experience any regret or disappointment after purchasing an EV bike. They often chant the slogan “Mehnga Roye Ek Baar, Saastaa Roye Baar Baar!” (Expensive items may sting at the time of purchase, but a cheap item can lead to lasting headaches.)

In the blink of an eye, people can perceive the main difference between the two types of motorcycles. However, unfortunately, the market leaders of fuel-powered motorcycles have planted serious misconceptions in the minds of customers about higher costs, poor local road infrastructure, a lack of qualified EV technicians and the absence of power stations.

“People are switching from gas bikes to EVs as they once did from basic mobile phones to smartphones. Chinese branded EV bikes cost between Rs 155,000 and Rs 360,000 per unit, while Japanese fuel bikes range from Rs 157,000 to Rs 550,000. Chinese fuel bikes are gradually disappearing from the market. Additionally, EV sports, luxury and heavy bike models are on display at various showrooms, priced from Rs 550,000 to Rs 1.25 million. The appeal of EV models and inflation have reduced sales of fuel bikes, including Honda by 15%, Suzuki by 30%-40%, Yamaha by 50%, and various Chinese brands of fuel bikes by up to 90% in the local market ». said automotive expert and representative Muhammad Sabir Sheikh.

He said that people who lead an organized life prefer electric bikes for their low maintenance requirements. However, many careless motorcycle riders still lean towards fuel bikes, despite the heavy maintenance costs involved. EV companies offer technical support at the customer’s home 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.

Prominent automotive analyst Mashood Khan explained the need for the government to provide incentives to boost the EV market. He suggested allowing short-term, phased imports of Completely Knocked-Down (CKD) or Completely-Built-Up (CBU) kits and easily implementing installment plans through commercial banks or other strategies.

Addressing the challenges of this emerging industry, he pointed out that a long-term policy on kit imports could deplete foreign exchange reserves. In addition, poor road infrastructure can create challenges for EV adoption. He stressed the importance of implementing a localization policy for technology transfer and urged the government to establish R&D (research and development) centers to promote innovation in the EV industry, citing China’s success in this regard.

In addition, he highlighted the need to improve road infrastructure, ensure stable electricity supply without fluctuations and create charging station infrastructure, especially considering that a significant part of the urban population resides in vertical housing where charging EV bikes can pose additional challenges.

Regarding market dynamics, he noted the significant demand for fuel motorcycles, which exceeds two million units per year. He acknowledged the uncertainty surrounding the EV industry’s share of this market, but emphasized that EVs offer advantages despite the initial cost, which could be mitigated through localization strategies.

Published in The Express Tribune, April 28^u2024.

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