In a shaky business and political environment, high petrol prices, lack of charging infrastructure, unbearable power tariffs and uncertain exchange rates — a few people are taking the risk of purchasing electric vehicle (EV) bikes to save per km cost and manage their soaring household expenses.

The design of e-bikes available in the markets may remind people of a modern-age Vespa, which may not attract some buyers. Other assemblers have introduced electric bikes by keeping the design the same as the decades-old 70cc petrol version by replacing the motor-based engine.

Consumers believe that saving petrol costs by purchasing E-bikes will certainly take time, depending on proper charging infrastructure, battery price, bike price and power tariff.

The speed of EV bikes, ranging between 35-70km per hour, may not lure young generations who try to beat each other on 70-125cc petrol version bikes. E-bikes, with a price range of Rs155,000-360,000, can run from 70km to 125km on a full charge, depending on the 48V-72V graphene battery, with an 18-month warranty. They consume 1.25 to three units per KWH of electricity.

Currently, six assemblers are manufacturing electric bikes, and 31 fresh licenses have been issued for their production

Director Sales and Marketing, Road Prince, Mohammad Salman, said “we have established a state-of-the-art separate assembly line in our Kasur Plant by investing $10 million, which has a capacity of producing 350,000 bikes annually. The first locally assembled EV bike will be rolled out in November 2023.”

On the risk of investing in new business in an uncertain political and economic environment, he said the company is committed to making strategic decisions that balance potential risks with opportunities.

“To mitigate political and economic uncertainties, we have done our market research, which indicates a potential shift for engine bikes to electric bikes due to high petrol prices and high savings per km,” he said, adding Eiffel Industries Limited (Road Prince) has forged a strategic partnership with China’s Yadea which serves over 70 countries including Europe and North America with a strong supply chain network.

On grabbing a significant market share, he said in the initial phase, “we expect it will take three to four years to adopt this new technology and high growth in the coming five to seven years. We expect a 70pc market share for the electric market in this timeline.”

Elective Vehicle Policy 2020-2025 was approved in 2019, and various tax and duty incentives were offered to lure investment. As per the Engineering Development Board (EDB), six assemblers are making EV bikes, while 31 fresh licenses have been issued. As per policy, electric bikes need to capture 50 per cent of the market share by 2030 and 90pc by 2040.

When asked why investment failed to pick up despite incentives, he said that initial electric bike entrants shook consumers’ confidence due to quality issues and a lack of after-sales services, which is why investment couldn’t pick up initially.

To capture market share, the government and the private sector need to invest highly in charging infrastructure by leveraging existing petrol stations, he said.

Government subsidies on electricity to these stations will fast-track the process. The government must also ensure smooth transmission of electric production by investing in low-cost energy plants and strict control on power theft to ensure consistent and stable prices for the end consumer for an early shift to electric bikes.

The government needs to encourage banks and other lending institutions to promote financing on low markup rates for electric bikes with a long term financing plan. This subsidy can be utilised by low future import of fuel, Mr Salman said.

The government must ensure stability in the exchange rate. Eiffel Industries will also invest in localisation of the supply chain to reduce dependency on imported spare parts. He said the government must take a step forward to announce a favourable long-term policy to encourage investment for the benefit of the common Pakistani.

On opening charging stations in the country, the company wants to collaborate with the government and other stakeholders to help establish charging stations, especially in key cities, to ensure hassle-free movement of customers. A robust charging network is crucial for the success of electric mobility. However, the responsibility for charging infrastructure should be a shared effort involving both private and public sectors.

When asked how much electric consumption (units/KWH) a battery usually consumes for charging, he said it varies depending

on the battery size. “Our model will consume two to three units of electricity on one full charge,” Salman said.

“We plan to roll out six models before 2024 with speed limits ranging from 25 km/h up to 140 km/h with a price range of Rs150,000 to up to Rs1.2m with fuel cost saving up to Rs8 per km and more on older bikes with poorer average,” he said.

The company plans to introduce world-class Yadea’s patented technology of Graphene Lead Acid batteries to Pakistan under the Eiffel Industries banner. These are much more affordable than lithium-ion batteries, with almost the same lifecycles. A lithium-ion battery is an expensive technology mostly preferred for electric cars and is considered to have a higher battery life than lead acid batteries. However, graphene lead acid batteries also have a high battery life.

Managing Director, Seres Pakistan, Adeel Usman said the company is gearing up to launch locally assembled EV SUV Seres 3 vehicles. Regal Automobile believes that the current political-economic climate has created an opportunity with high fuel costs.

“We plan to invest $15m over five years on our EV lines to upgrade infrastructure and to add testing equipment at our Multan Road Plant,” he said.

He hopes to see good results in the next five years. EV vehicles have an advantage owing to high fuel costs and subsidies offered by the government, which would reduce the price of EV cars compared to hybrid or internal combustion engine (ICE) vehicles.

“We will see petrol/diesel SUV buyers switching to pure EV due to the high fuel prices. Driving an electric car will cost one-fourth of what it will cost to run an ICE vehicle,” he said.

The company is currently working on setting up charging stations on strategic points at M1 and M3 Motorways. M2 has ample charging infrastructure available at Bhera, and major cities in Pakistan also have charging stations available in different areas. These charging stations will increase once more EV vehicles start coming into Pakistan.

SERES 3 has a battery pack of 49.34kwH, which means it would consume 49 units from home charging and roadside stations. The SUV will have a maximum speed of 160km per hour, and the price would be around Rs9m. EV vehicles only come with Lithium batteries.

Published in Dawn, The Business and Finance Weekly, October 30th, 2023