The electric vehicle (EV) market is poised for a significant expansion with the anticipated entry of over 100 electric bike assemblers by mid-2024. This surge is attributed to the growing popularity of EVs among diverse demographics, including women, students, and the elderly, driven by the escalating costs of petrol, spare parts, and repair services amid rising inflation.
Muhammad Sabir Sheikh, the Chief Coordinator of the Electric Two Wheelers Manufacturing Group, revealed in a market survey that these assemblers are set to revolutionize the local market, potentially overshadowing traditional petrol-powered motorbikes. Sheikh, who also deals in EV bikes in Karachi, noted a shift in consumer preferences towards EV bikes, which are increasingly seen as more attractive and feature-rich alternatives to their petrol counterparts.
The future of the EV bike market seems to hinge on the sale of original design models, with converted EV bikes expected to phase out. Sheikh emphasized the potential for price reductions in EV bikes if the government supports the industry and the US dollar depreciates, which could further boost their market dominance over Japanese and Chinese petrol bikes.
EV bikes, with prices ranging from Rs. 100,000 to Rs. 360,000, are primarily being purchased by a diverse group including women, university students, and daily commuters. These bikes offer significant savings on fuel and maintenance costs, which can range between Rs. 10,000 and Rs. 15,000 per month. The market is witnessing healthy competition with the entry of leading Chinese companies and local brands such as Yadea, Eiffel Industries (Road Prince), Metro, Evee, Road Star, Benling, Crown Group, Aima, New Asia Ramza, Tailg, Union Star, and Hi-Speed.
Ashfaq Hussain Awan, a Sales Manager for a Punjab-based EV bike assembler, recalled the initial challenges faced by the industry, particularly during the Covid-19 pandemic and the subsequent period marked by high petrol prices and poor experiences with substandard EV bikes. However, the introduction of reputable Chinese and local brands has restored customer trust, with a notable increase in purchases by women and girls, who traditionally did not ride bikes in the country.
In Lahore, Hamza Asad, the business head of another EV bike assembler, highlighted technological advancements in their electric scooters, transitioning from 72V 20Ah lead dry batteries to improved 60V 23Ah Graphene batteries, which are safer and more reliable than lithium ones.
Approximately 138 new EV bike assemblers are currently observing the market, waiting for more political and economic stability before making their entry. The number of assemblers is expected to exceed 200 by 2024, signalling a significant shift in the transportation landscape of the country.
