ISLAMABAD – ADM Group, a leading investment company, has announced a significant investment of $250 million to manufacture electric vehicles (EVs) in Pakistan. This initiative, reported by state-run media on Thursday, is expected to advance the country’s automotive industry and help reduce pollution levels.
Pakistan’s urban areas are plagued by some of the world’s highest levels of air pollution, largely driven by vehicle emissions. The country struggles with sub-2.5 μm particulate emissions, which severely impact both its economy and the quality of life of its citizens. Notably, road transport contributes to 23 percent of Pakistan’s greenhouse gas emissions.
In 2019, Pakistan approved the National Electric Vehicles Policy (NEVP) with ambitious goals: EVs are to comprise 30 percent of all passenger vehicles and heavy-duty truck sales by 2030, with an even more aggressive target of 90 percent by 2040.
The decision for ADM Group’s investment was reached during a meeting between Minister for Industries and Production, Rana Tanveer Hussain, and ADM Group CEO, Yasir Bhambhani, in Islamabad. Bhambhani explained that the project would be executed in two phases: the first phase will establish a network of charging stations, followed by the commencement of vehicle manufacturing in the second phase. The vehicles are expected to cover a distance of 300 km on a single charge.
ADM Group is actively promoting EV adoption in Pakistan, leveraging new federal and provincial policies as well as commitments from automakers to transition their fleets to electric. However, Bhambhani noted that the absence of EV infrastructure remains a fundamental challenge to widespread adoption in the country.
Minister Hussain assured that the government would extend all possible support to attract foreign direct investment, acknowledging that electric vehicles are now an unavoidable reality.
ADM Group highlighted the rapid growth of the electric car market in Pakistan, with sales surpassing 10 million units in 2022. In that year, EVs accounted for 14 percent of all new cars sold, up from around 9 percent in 2021 and less than 5 percent in 2020. The first quarter of 2023 alone saw the sale of over 2.3 million electric cars in Pakistan, marking a 25 percent increase compared to the same period last year.
This substantial investment by ADM Group signals a significant step forward in Pakistan’s transition towards sustainable transportation, aligning with the global shift towards cleaner energy solutions.
