The Ministry of Industries and Production in Pakistan has granted licenses to 31 companies to manufacture electric vehicles, marking a significant step in the country’s efforts to combat climate change through EV adoption. Currently, six companies are involved in assembling electric two-wheelers. Pakistan’s ‘Electric Vehicle Policy 2020-25,’ approved by the federal government in 2019, offers incentives and tax exemptions to attract local manufacturing investment in electric vehicles. Pakistan aims to increase electric motorcycle and three-wheeler sales to 50% by 2030 and 90% by 2040 to address air pollution caused by over 240 million registered motorbikes in the country. The policy is expected to reduce greenhouse gas emissions and create job opportunities.
Earlier this year, Zyp Technologies secured a $1.2 million seed capital investment led by Indus Valley Capital to drive the adoption of electric mobility in Pakistan. Zyp addresses key adoption hurdles, such as high upfront costs, range anxiety, and long charging times, through its locally developed electric motorcycles, battery swap stations, proprietary battery architecture, cloud software, and mobile apps. As climate change and rising fuel prices become more pressing issues in Pakistan, Zyp’s solutions enable motorcycle fleet operators to achieve significant fuel cost savings and reduce emissions, contributing to environmental sustainability and profitability.
Aatif Awan, founding partner at Indus Valley Capital, emphasized that Zyp’s vision to electrify the country’s 25 million motorbikes is a crucial step toward solving trade imbalances and high inflation, highlighting the company’s innovative approach designed for the local environment.
