ECC, Economic Coordination Committee has approved a 0% markup easy installments scheme for e-bikes and e-rickshaws in Pakistan yesterday. According to this scheme, the loans will be provided without any markup and will be repaid in 3 years. The finance minister, Mr. Ishaq Dar shared this information with the media yesterday.
As per the details, Government is interested to control the petrol import bill. As the majority of fuel is consumed by motorcycles and autorickshaws in Pakistan, they are trying to convert them to EV users. The EV technology is not mature in Pakistan yet, many companies are trying to bring in more and more electric vehicles. Many old players as Sazgar have stepped into EV Rickshaws. The E-Bikes industry has already many players with different qualities and types of motorcycles on offer.
As the major key components for EVs, the batteries and the motors are hard to get by in Pakistan, they are imported from different sources around the world. This makes them expensive for an end consumer in Pakistan. On top of that, the quality which was initially provided by local e-bikes was not up to the mark. This also has to do with the design, fit n finish, and after-sale services of the products.
There are many start-ups that are striving to build better and more improved E-bikes and rickshaws. The start-ups include Magvus by ZYP Technologies, C1Pro by Evee, and Yes Electromotive’s people carrier. This sector of the auto industry needs support and nurturing from the government as it is not easy to invent, market, and sell a product in tough markets like Pakistan.
More details on this scheme will follow soon, so far the government is hoping to generate 15,000 sales through this project in the first year. This is a good omen for industry and petrol-deprived end users.