As Pakistan unveils its long-awaited New Energy Vehicle (NEV) Policy 2025–30, aimed at reducing emissions and fuel dependence, voices from within the auto industry are calling for a shift in how new technologies are priced and positioned in the market.
In a recent interaction with media in Lahore, Syed Asif Ahmed, General Manager Marketing Division at MG Motors, said that while the policy is a step in the right direction, the local Hybrid Electric Vehicle (HEV) market remains largely unaffordable and does not pass on the benefits of technological advancements to the average Pakistani consumer.
"HEVs in Pakistan have become a luxury for a niche market,” Ahmed remarked. “Despite policy support, the real advantages have not trickled down to car buyers.”
He noted that the most expensive HEV SUV in Pakistan—a seven-seater—carries an ex-factory price tag of Rs 16 million, while five-seater variants range from Rs 9.6 to 12 million.
"The industry must think seriously about affordability,” he added, “and consider shifting toward Plug-in Hybrid Electric Vehicles (PHEVs), which are better suited for urban use and offer real electric range.”
Unveiled by the Ministry of Industries, the NEV Policy 2025–30 introduces official classification for EVs, PHEVs, and hydrogen-powered vehicles as "New Energy Vehicles"—in line with global standards.
Ahmed was also critical of how earlier tax incentives were structured, allowing traditional hybrids to be labelled as “New Energy Vehicles”, primarily to benefit large automotive players.
"Unfortunately, these subsidies neither helped the environment nor the people. They only benefited the principal companies and their local partners.”
In contrast, PHEVs offer a more meaningful alternative, with pure EV driving capabilities for daily urban commutes and hybrid flexibility for long routes—helping tackle the range anxiety often associated with EVs.
MG Motors has taken a lead with the introduction of Pakistan’s first locally assembled Plug-in Hybrid SUV, the MG HS PHEV. It features a 16.6kWh lithium-ion battery offering over 52 km of electric-only range, combined with a 1.5L turbocharged engine to deliver 260 HP and 370 Nm of torque—achieving 0–100 km/h in just 7.1 seconds.
Priced under Rs 10 million, Ahmed described the MG HS PHEV as “the best value-for-money vehicle in its class,” offering advanced tech, performance, and fuel economy.
Asif informed that MG has sold more than 16,000 vehicles in Pakistani market so far out of which approximately 2000 were Plug In Hybrid vehicles (PHEV) as Pakistani customers are realizing the true economic benefit of PHEV as it’s a perfect urban mobility option for the urban consumers.
He says despite the changing trend of converting to PHEV from HEV Pakistani consumers have just one choice in the shape of MG HS PHEV, although having a better technology but still placed lower than most hybrids in Pakistan.
Asif said that MG leads specification leadership in Pakistan. All automakers now follow the global specs MG introduced in MG HS in both CBU & CKD. MG vehicles have crossed approximately 350 million miles since its launch in Pakistan in 2021, and MG HS has successfully tested for Pakistan’s fuel, terrain (road), and weather conditions, he added.
Asif said the vehicles in Pakistan are still expensive. Globally, hybrid vehicles deliver financial value when their purchase price does not exceed more than 10% of the cost of an equivalent petrol vehicle.
However, this benchmark is not practised in the Pakistani market. Here, the price gap between hybrids and their petrol counterparts is significantly wider averaging around 45%.
For example, a C SUV hybrid vehicle costs up to Rs 12 million, while similar C SUV conventional petrol cars cost Rs 8.0 million. In Pakistan, the difference of price between hybrid and conventional petrol cars is approximately 4.0 million in the C SUV category.
While Pakistan’s NEV policy sets a progressive roadmap, industry execution remains key. With more PHEV models expected to enter the market, the question remains will automakers use these incentives to empower consumers—or repeat the hybrid playbook of high margins and minimal environmental gains?
"The potential is enormous,” Ahmed concluded. “But only if we prioritize real consumer value and environmental impact—over short-term profits.”
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