BMW Raising Profile in Pakistan’s EV, PHEV Market

ISLAMABAD, Pakistan – The first public charging station for electric and plug-in hybrid-electric vehicles in Pakistan is launched, paving the way for an anticipated increase in eco-friendly cars on the country’s often crowded and polluted roads.

The station was developed by Karachi-based auto importer and manufacturer Dewan Farooque Motors (which also makes standard-transmission Hyundai and Kia models), in conjunction with German automaker BMW, which supplied the recharging technology.

The BMW ChargeNow model situated in the heart of Lahore’s Emporium Mall initially served just 141 motorists, according to an official with Dewan Farooque, a certified importer of BMW vehicles into Pakistan.

“It is the first of three charging stations,” the official says. “Two more ChargeNow stations will be inaugurated by the end of this year” in Karachi and Islamabad, the capital.

BMW ChargeNow is a network of charging stations providing BMW EV and PHEV owners with easy, quick and secure charging services. Dewan Farooque operates the system and directly gains revenue from users having invested in the powertrain technology.

The companies’ sights are set on future growth. While initial uptake may be slow, Dewan Farooqe foresees steady growth of EVs and PHEVs in Pakistan, given the World Bank estimated its population in 2015 to be 188 million.

Indeed, BMW has said it is witnessing a sharp increase in demand for its PHEVs in Pakistan, saying it received 180 pre-bookings last year for its X1 model launching this month.

“Fifteen percent of our total sales in Pakistan is coming from the hybrid segment and the tendency is increasing,” Johannes Seibert, managing director-BMW Group Middle East, said at the November launch in Lahore. “We plan to introduce more models in 2017, including the complete range of 5-Series and 7-Series.”

A Dewan Farooque official says 50 more orders for imported hybrids are being processed, and the group expects to sell more than 250 hybrid vehicles in Pakistan during 2017.

Dewan Farooque Chairman Muhammad Yousuf Farooqui says BMW ChargeNow will make day-to-day electrified motoring possible, at least near its installations. “I’m hopeful that the BMW ChargeNow station will make daily motoring possible purely in electric mode for plug-in hybrid and electric vehicles, which offer even greater mobility than the conventional hybrid vehicles.”

By reducing Pakistan’s need to import oil – it is a net importer – a robust electric-car market would have “a direct and very positive impact on the foreign exchange reserves of the country,” Farooqui says

This sub-sector of Pakistan’s automotive market has the support of the government, whose 2013-14 finance bill included reductions in duties and taxes on imported hybrid-electric vehicles ranging from 25% to 100%, depending on engine capacity.

The result has been an increase in imported HEVs, says an official with Pakistan's Ministry of Industries and Production. Prius hybrid cars from Toyota especially are popular, he says, although the ministry lacks data on the number of hybrid and electric vehicles currently is use in Pakistan.

The official says Toyota and Japanese rival Honda dominate Pakistan’s hybrid market. The most popular PHEVs include the 1.3L Honda Fit; 1.3L Honda Insight; 1.4L Honda Civic; 1.5L and 1.8L Prius; 1.5L Toyota Aqua; 2.4L Toyota Estima; and 2.4L Toyota Camry.

BMW also offers many cars using the automaker’s eDrive hybrid technology, including the luxury-level i8.

Despite the new recharging stations, it will take time for PHEVs and EVs to become popular in the Pakistan mass market, the ministry official tells WardsAuto.

“Although these cars have invaded developed markets and countries in huge numbers, Pakistan hasn’t seen a revolutionizing influx yet,” he says.