Pak-China cooperation in Electric Vehicles (EVs) is quite promising as it is beneficial for both the countries, according to a report published by Gwadar Pro. Pakistan’s Daewoo Express and China’s Skywell Automobile have signed a Strategic Alliance Agreement, under which Skywell Automobile will provide its state-of-the-art electric buses for the Pakistani market in Phase-1, and in Phase 2, shall set up a manufacturing plant to produce EVs in Pakistan.
The report says, given the high cost of importing EVs, it’s necessary and mutually beneficial to establish local manufacturing plants in Pakistan. Pakistan needs the same kind of manufacturing lines in Pakistan. It will be cheaper to manufacture in Pakistan as the labor cost is lower in Pakistan. And we can have an abundance of the workforce to work in these factories.
Aside from the indicated above, joint marking and government policy are also of great significance at the starting phase of EVs development. In retrospect, at the starting point of China’s EVs, around 10 years ago, the Chinese government provided a lot of financial support policies. “If a customer buys one EV, the government will provide subsidy from around RMB10,000 to 50,000, that means a lot,” Wang mentioned.
It is worth mentioning that in April this year, the Chinese government also extended monetary incentives that were about to expire and prolonged the purchase-tax exemptions of new energy vehicles (NEVs) through 2022.