Pakistan's EV Battery Industry Has Great Potential: Jian Peng
Mohammad Ali (@ChaudhryMAli88) Published February 22, 2022 | 03:50 PM
BEIJING, (UrduPoint / Pakistan Point News - 22nd Feb, 2022 ) ::Pakistan's Electrical Vehicle (EV) battery industry has great potential as the country has abundant lithium and copper resources, said Jian Peng, Pakistan's Honorary Investment Counselor in China, who is also an expert on automobile industry in the Research Association of the China World Trade Organization.
Battery is a major part of electric vehicle (EV)'s production cost, and its main raw material is lithium. "Since Pakistan and its surrounding areas have abundant lithium and copper resources, its EV battery industry has great potential," he told China Economic Net (CEN).
In the Automotive Industry Development and Export Plan (AIDEP 2021-26) in the Finance Act 2021 in Pakistan, sales tax on local EVs has been reduced from 17% to 1%. Custom duty on specific parts of the EV has been fixed at 1%. The main purpose of the policy is to overcome climate change issues and reduce oil import bills to save precious foreign exchange.
"As the government started to support the EV industry, more companies would invest in this field and make better quality products," said Mian Muhammad Hafeez, general secretary of Lahore Car Dealers Federation, who also believes that locally produced EV battery is important for the development of EV industry. "If local batteries are made, the cost of battery replacement will be cheaper, which can help extend the guarantee period of the EV products and get better feedback from the customers."� The Chinese government has given a lot of support to the EV battery industry in its early stage of development.
The industry grew very fast, which lead to excess production capacity. At present, the market of EV batteries in China is occupied by the leading enterprises, a winner-take-all situation. Many second-tier EV battery factories with sophisticated technology started to turn to the foreign market to transfer their technologies and relocate their production lines. I think Pakistan can be one of their best choices.
"China's leading EV battery companies, like Contemporary Amperex Technology Co., Limited(CATL), are now extending their business to a wider range. On the one hand, they are actively searching for more mineral resources. On the other hand, they are cooperating with automobile assembly plants in form of stock replacement or joint ventures, establishing battery production enterprises together. It can help allocate the resources within the industry more reasonably and strengthen the technology improvement." Jian Peng believes that such experience can be referred by Pakistan's EV companies.
The development of EVs in Pakistan should start with localized models with high cost performance. To accelerate the popularization of electric vehicles in Pakistan and reduce the cost for customers, Jian Peng also suggested the separation of car and battery.
"Customers can buy cars and lease batteries, so that customers have less financial stress to choose EVs in the beginning," he added.
Related Topics
Recent Stories
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 28 April 2024
Today Gold Rate in Pakistan 28 April 2024
Fresh wave of rainfall in AJK continues for the second consecutive day
Babar, bowlers help Pakistan level series 2-2 against New Zealand
Attack in restive Chilean province leaves three police officers dead
PM, Saudi Royal court advisor discuss ways to boost economic ties
England clinch third successive Women's Six Nations Grand Slam
DC Bahawalnagar leads fight for fair bread prices
Sheffield Utd relegated from Premier League
02 proclaimed offenders arrested by Wah Police
Pakistan level T20I series with nine-run victory over New Zealand
Minister meets Chinese Consul General, discusses bilateral cooperation, Chinese ..
More Stories From Miscellaneous
-
Wheat farmers in a fix on price, procurement mechanism
3 hours ago -
Modern tools to help transform crime investigation procedures
3 hours ago -
Sanam Marvi captivates audience with mesmerizing performance
19 hours ago -
Modern Education Techniques: A pathway to achieve economic development
2 days ago -
Kite Flying: From cultural festival to deadly sport
2 days ago -
PDMA predicts gusty wind, rain with thunder, hails
5 days ago
-
Iranian president Raisi given guard of honour at PM House
6 days ago -
Intellectuals, writers accolades Naseer Mirza on his literary contribution
7 days ago -
Bahawalpur Adabi Sangat hosts memorable mushaira
7 days ago -
Cattle farming vital to alleviate poverty in rural areas
7 days ago -
Pakistan: A land of tourism, archeological wonders
7 days ago -
Transforming education sector: from job hunters to job creators
9 days ago