Riding the Electric Wave: How Pakistan's Auto Industry Can Navigate the EV Disruption

Omar Khan, M.Eng (Chemical Engineering), University of Birmingham; MBA, LUMS QMS9000 – October 28, 2024

The Pakistan Auto Show 2024 held at the EXPO centre in Lahore, has just concluded, leaving in its wake a clear message: the electric vehicle (EV) revolution is accelerating in Pakistan. The launch of several new EV models from both local and international manufacturers signals a significant shift towards electric mobility. This event is not just a showcase of innovation but a wake-up call for traditional car manufacturers, parts providers, and Original Equipment Manufacturers (OEMs) in the country.

As someone who has worked in the Oil and Gas Sector for over 7 years, I recognize the profound impact this shift can have on Pakistan's automotive sector. At QMS9000, we believe that this rapid evolution presents both challenges and opportunities. In this article, we explore how the recent EV launches at PAPS 2024 impact the local automotive industry and how businesses can adapt to stay ahead.

PAPS 2024: A Glimpse into Pakistan's Electric Future

The PAPS 2024 event was a turning point for Pakistan's automotive sector, featuring a variety of electric vehicles that cater to diverse market segments:

Notable EV Launches

1.????? Changan Lumin EV: Changan unveiled the Lumin, their first electric vehicle in Pakistan, featuring a 28 kW battery and offering a range of 300 kilometers per charge1.

2.????? MG HS PHEV: MG Pakistan introduced the locally assembled MG HS Plug-in Hybrid Electric Vehicle (PHEV), combining a 1.5-liter turbocharged petrol engine with an electric motor2.

3.????? MG Cyberster EV: MG showcased the Cyberster, an all-electric roadster equipped with dual electric motors and a range of up to 444 kilometers2.

4.????? Kia EV5: Kia launched the EV5, available in two variants with ranges of up to 500 kilometers per charge2.

5.????? Deepal L07 and S07: Deepal introduced two new electric models designed to cater to different market segments, including a compact SUV and a sedan3.

6.????? BYD ATTO 3 and BYD SEAL: BYD showcased the ATTO 3, an electric crossover SUV with a range of 410 kilometers, and the BYD SEAL, a high-performance electric sedan offering up to 650 kilometers per charge12.

What This Means for Pakistan's Automotive Industry

1. A Clear Market Shift

The variety and sophistication of EVs presented at PAPS 2024 indicate a strong push towards electric mobility. Both manufacturers and consumers are showing increased openness to EVs, driven by:

• Environmental Concerns: Recognition of the need to reduce urban pollution and carbon emissions.
• Economic Incentives: Potential long-term savings on fuel and maintenance costs.
• Government Support: Policies and incentives aimed at promoting EV adoption.

2. Challenges for Traditional Manufacturers and Suppliers

The rise of EVs poses significant challenges:

• Technological Adaptation: Traditional manufacturers must invest in new technologies and re-skill their workforce to produce and service EVs.
• Supply Chain Overhaul: Parts providers need to adjust their offerings to include EV-specific components like batteries and electric motors.
• Increased Competition: The entry of international EV brands intensifies competition, pushing local companies to innovate.

3. Opportunities for Growth and Innovation

• Local Manufacturing: The introduction of locally assembled EVs, such as the MG HS PHEV, suggests a shift towards domestic production, which can reduce costs and stimulate the economy.
• Market Expansion: There's a growing market for electric two- and three-wheelers, with companies like Sazgar producing electric rickshaws1.
• Technological Leadership: Early adopters can position themselves as leaders in the emerging EV sector.

How Local Manufacturers Can Prepare

1. Embrace Innovation and Diversification

• Invest in R&D: Focus on developing EV technologies suitable for Pakistan's market.
• Expand Product Lines: Include EVs and hybrid models to meet evolving consumer demands.
• Upgrade Facilities: Modernize production plants to accommodate EV manufacturing.

2. Forge Strategic Partnerships

• Collaborate with International Brands: Leverage partnerships to access advanced technologies and best practices.
• Engage with Tech Startups: Work with innovators specializing in EV components and software.

3. Skill Development and Workforce Training

• Employee Training Programs: Equip the workforce with skills in EV technology, safety protocols, and maintenance.
• Talent Acquisition: Attract experts in EV engineering and manufacturing.

4. Enhance Quality and Environmental Standards

• Implement ISO Certifications: Adopt international standards such as ISO 9001 for quality management and ISO 14001 for environmental management.
• Focus on Sustainability: Align business practices with global sustainability goals to appeal to environmentally conscious consumers.

The Government's Role in Facilitating the Transition

1. Policy Support and Incentives

• National Electric Vehicle Policy (NEVP): Aims for EVs to constitute 30% of passenger vehicles by 2030, offering tax incentives and subsidies1.
• Licensing for Manufacturers: The Engineering Development Board has issued licenses to 34 manufacturers under the EV Policy2.

2. Infrastructure Development

• Charging Network Expansion: Investing in charging stations across major cities and highways.
• Grid Enhancement: Upgrading the national grid to support increased electricity demand.

3. Public Awareness and Education

• Consumer Education Campaigns: Addressing misconceptions about EVs to build consumer confidence.
• Demonstration Projects: Implementing pilot programs in public transportation to showcase EV benefits.

How QMS9000 Can Assist in the Transition

At QMS9000, leveraging my international experience with Honeywell and deep understanding of quality management systems, we offer expertise to help businesses navigate the EV disruption:

1. Implementing International Standards

• ISO 9001: Enhance quality management systems to meet global benchmarks.
• ISO 14001: Adopt environmental management systems critical for sustainable EV manufacturing.
• ISO 45001: Ensure occupational health and safety during technological transitions.

2. Facilitating Technological Upgradation

• Lean Management: Optimize operations to reduce waste and improve efficiency.
• Energy Management (ISO 50001): Improve energy performance, crucial for cost savings in EV production4.

3. Training and Development Programs

• Workforce Upskilling: Provide training in EV technologies and quality management practices.
• Leadership Coaching: Equip management with strategies to lead through industry changes.

4. Supply Chain Optimization

• ISO 28000: Secure and streamline supply chains for new EV components.
• Risk Management: Identify and mitigate risks associated with supply chain disruptions.

Conclusion: Steering Towards an Electric Future

Having worked on international projects across 13 countries, I understand the transformative power of embracing industry shifts. The PAPS 2024 showcased that the EV revolution in Pakistan is not just imminent—it's already underway. For local manufacturers, parts providers, and OEMs, the time to act is now. Embracing this shift can lead to sustainable growth, innovation, and a competitive edge in a rapidly evolving market.

At QMS9000, we're committed to supporting Pakistani businesses through this transformation. Our expertise in ISO certifications and quality management systems positions us as a valuable partner in navigating the challenges and opportunities of the EV era.

Is your business ready to charge ahead in the electric revolution?

Let's Drive Progress Together

If you're a manufacturer or supplier looking to adapt to the EV industry, we invite you to reach out.

• Customized Solutions: We offer tailored consulting services to meet your unique needs.
• Expert Guidance: Let us help you navigate the complexities of this transition.

Get in Touch

• ?? Email: [email protected]
• ?? Phone: +92-42-35717909-10
• ?? Address: FF 9 Leeds Center, Main Boulevard, Gulberg III, Lahore, Pakistan
• ?? Website: www.qmsiso.com

Join the conversation! Share your thoughts on the EV industry's impact on Pakistan's automotive sector below.

About the Author

Omar Khan is an experienced professional with a Master's degree in Chemical Engineering from the University of Birmingham and an MBA from LUMS. With over 7 years at Honeywell, he has worked on 21 international projects across 13 countries, gaining extensive expertise in quality management and industrial engineering. As a leader at QMS9000, he is dedicated to helping businesses navigate industry transformations and achieve excellence through strategic planning and implementation.

Note: The information about PAPS 2024 and the vehicles launched is based on recent reports and our analysis. Please verify specifics with official sources for the most accurate and updated information.

At QMS9000, we're here to empower your business for the future. Let's embrace the electric revolution together.

Footnotes

1.????? Evolution of the EV Industry In Pakistan: Challenges & Future Prospects. PakWheels

2.????? Pakistan Accelerates Electric Vehicle Manufacturing: 34 Companies Licensed. AutoPower Pakistan

3.????? Changan Lumin EV Unveiled at PAPS - Images - PakWheels Blog. PakWheels

4.????? The Benefits of ISO 50001 Certification for Energy Management in Pakistan. GITChia Blog