Pakistan set for 23 new vehicle launches with 87pc electrified models

ISLAMABAD: Pakistan’s auto market is heading towards a major shift, with 23 new vehicle models expected to be introduced between June and December 2026 and the overwhelming majority using electrified powertrains, industry data compiled by Arif Habib Limited (AHL) shows.

The AHL data shows that nine of the planned launches are fully electric vehicles, while 11 are plug-in hybrid electric vehicles or range-extended electric vehicles. Only three upcoming models are conventional internal combustion engine vehicles. The mix means nearly 87% of the pipeline consists of electrified vehicles, signalling a broader change in the country’s automotive market.

AHL said recent launches in the listed space include GAC’s Aion V and Aion UT, while upcoming models point to continued introductions across several segments and price brackets.

The expected arrivals span premium sport utility vehicles, crossovers, sedans, hatchbacks and pickup trucks. The range of planned offerings suggests growing confidence among automakers in demand for new-energy vehicles in Pakistan, even though overall automobile sales are still below past highs.

Launch schedule through December

The launch cycle is expected to start with seven vehicles in June. These include the petrol-powered Changan UNI-S, Jetour T1 and Jetour T2, along with the GWM Cannon Alpha and Omoda C7 plug-in hybrids. MG is also expected to roll out two fully electric models, the IM5 and IM6.

July is projected to bring four electrified launches: the Jaecoo J8 PHEV, Nevo Q05 REEV, Deepal G318 REEV and the all-electric Nevo A06. In August, the expected lineup includes the Ora 03 EV, Deepal Hunter K50 REEV and Avatr 11 EV. September is set to feature the Chery QQ3 electric hatchback and Deepal S09 REEV, while October is expected to bring the Changan Lumin EV.

No launches are expected in November. December is then scheduled to close the year with six more vehicles: the Denza B5, BYD Sealion 6, Denza B8 and Nevo Q07 hybrids, along with the Avatr 07 and Aion ES electric vehicles.

Chinese brands lead the transition

Chinese automakers are emerging as the main drivers of Pakistan’s transition towards electric and hybrid mobility. Brands including BYD, GAC, Changan, Deepal, Avatr, Denza, Ora, Omoda and Jaecoo are expanding through partnerships with local assemblers and distributors.

Recent launches have strengthened the position of Chinese brands in the market, while upcoming models such as the Aion ES, Hyptec HT, Omoda C7, Jaecoo J8, Cannon Alpha, Sealion 6 and the Denza range show the spread of Chinese participation across various categories and price levels.

Automobile industry expert and consultant Shafiq Ahmed Shaikh said major Chinese EV makers are entering Pakistan through prominent joint ventures. “The world-renowned and globally famous Chinese EV titans are entering Pakistan in high-profile joint ventures.”

Shaikh said the sector’s shift began under the Auto Industry Development and Export Policy 2021-26 and is likely to pick up pace under the upcoming Auto Policy 2026-31. He said both established and new automakers are redirecting investment away from traditional petrol vehicles and towards EVs, PHEVs, REEVs, battery electric vehicles and hybrid technologies, while Chinese manufacturers are setting up local assembly operations for long-term expansion.

Policy support and remaining hurdles

Shaikh said the government’s push for electrification is tied to wider economic goals, noting that Pakistan spends an estimated $10-15 billion each year on crude oil and liquefied natural gas imports. He said the government is targeting savings of about $4.5 billion through the gradual electrification of transport.

Current incentives include a 1% customs duty on EV-specific completely knocked-down parts and a reduced 1% sales tax on locally manufactured electric vehicles fitted with batteries below 50 kilowatt-hours.

Industry stakeholders also expect localisation to improve as production volumes rise. Referring to the sector’s longer-term outlook, Shaikh said: “The sector hopes to expand domestic vehicle manufacturing beyond 500,000 units annually by the end of the decade, while generating up to $1 billion in automotive exports through locally assembled right-hand-drive vehicles.”

At the same time, limited charging infrastructure, affordability issues and consumer hesitation remain obstacles to broader EV adoption. Automakers and their partners are planning charging networks and financing options to make electric mobility more accessible.