Electric vehicle promotes auto industry.

Byline: S. Kamal Hayder Kazmi

The Electric Vehicle (EV) policy has been presently introduced through the government of Pakistan that is expected would enhance Pakistan's transport industry in upcoming eras. The Experts also revealed, from all stakeholders EV policy had been planned in Pakistan after incorporating consultations and will also assist increase pollution-free transport amenities.

There were four major advantages of EV policy the expert also revealed as these vehicles would run on 70 percent less cost as against to its fuel-based counterpart. It is also recorded that from low running costs to being environment-friendly, in Pakistan introduction of electric vehicles would also assist cut oil import statistics; yield innumerable benefits for environment, citizens' overall lifestyle. Source urged that for localisation of EV manufacturing efforts were being made, enabling the country to become part of the worldwide value chain of electric vehicles.

Furthermore, analysis of automobile industry during 2019 recorded that there was no respite for the automobile industry as it endured further rocky year amid a slump in activity. The soaring inflation and the high interest rate did not assist matters either.

Statistics also revealed that following developments in macroeconomic parameters, automobile sales plunged 34 percent to 175,611 units in the first 11 months of 2019 as against to 235,491 units sold in the same period of the last year. Moreover, from January to June 2019, figures also revealed that the fall in automobile sales was approximately 11 percent. In the first 5-month of FY20, total sales came in at 55,407 units as against to 100,997 units in the same period previous year, which said a 45 percent fall. Even though there have been various elements behind the plunge, the main cause was rupee devaluation.

Analysis also showed that in FY2019, the rupee depreciated 35 percent against the US dollar. As of November, the charge per unit reached high at 13.25 percent, one amongst the very best within the country's history because of high rate of inflation, which is presently 12.7 percent.

When the rupee depreciates, even domestically produced parts of vehicles become costlier as stuff for the parts comes from abroad. Furthermore main cause for the fall in sales was taxes, including federal excise duty (FED) and extra impost imposed through the centralized. Besides rupee devaluation against the US dollar, the charge per unit doubled...