Pakistan’s automotive sector has reached a pivotal milestone as the Engineering Development Board (EDB) confirms the country’s first 100% locally manufactured electric vehicle (EV) is slated for launch in June or July 2026[1]. Produced at a dedicated facility in Lahore, this “Made-in-Pakistan” hatchback is specifically engineered for urban efficiency, featuring a projected range of 180–250 km per charge[2]. With a target price of approximately Rs1 million (€3,100), the initiative aims to provide an affordable four-wheel alternative for the nation’s massive motorcycle-owning population[3]. The project is supported by a burgeoning local ecosystem, including Pakistan’s first lithium battery plant, which is expected to begin production in May 2026 with 74% local component integration. The local initiative is bolstered by the New Energy Vehicle Policy 2025-30. This policy offers attractive fiscal enablers, such as a 1% customs duty on EV-specific parts and potential tax reductions in the upcoming federal budget.
For European firms and investors, this domestic breakthrough signals a significant shift in the regional supply chain and R&D landscape. As Pakistan seeks to reduce its reliance on fuel imports and transition toward sustainable mobility, these developments position the country as a growing hub for affordable e-mobility and green energy investment.