Assessing the Feasibility of Electric Vehicle Adoption in Pakistan Affordability, Preferences, and Market Readiness

Abstract

The paper discusses the economic and infrastructural challenges preventing the adoption of Electric Vehicles (EVs) in Pakistan.It focuses on key factors such as affordability, consumer preferences, and the overall readiness of the market.Based on a segment-wise comparison, the analysis reveals that four-wheeler EVs carry an initial price premium of 20 to 64 percent over internal combustion engine (ICE) vehicles, with payback periods ranging from 11 to 25 years, placing them out of reach for most middle-income consumers.In contrast, electric two-and three-wheelers-comprising more than 90 percent of registered vehicles-offer a significantly more practical and affordable pathway for mass adoption.These vehicles exhibit minimal upfront cost differences, annual operational savings exceeding PKR 62,000, and short payback periods of just 4 to 6 months, making them highly feasible in the local context.The study adopts a mixed-methods approach using national price data, vehicle registration records, and international case studies from India, Kenya, and Norway.It evaluates financing innovations such as battery leasing, concessional green loans, and carbon-credit-linked microfinance, and outlines a consumer-focused policy framework that emphasizes financial inclusion, decentralized infrastructure development, and phased implementation strategies.By aligning global lessons with Pakistan's socioeconomic and infrastructural realities, the paper offers a scalable and inclusive roadmap for accelerating EV adoption through targeted, consumer-driven solutions.