In between the fuel crisis, the wars and Eid celebrations, an engaging mystery has been emerging in Pakistan’s auto sector, with sleuths and speculators to match the initiative of Wall Street traders or military OSINT accounts.
It began with the fuel issue. High-octane prices jumped sharply, and owners of higher-end vehicles who rely on that category of fuel to maintain engine health were suddenly faced with a pressing cost question. This was not a minor inconvenience. It immediately triggered concern about running costs, engine safety and brand reliability, especially in a market already sensitive to price shocks.
KIA was the first to release a formal statement, and others soon joined the bandwagon. What followed was less a coordinated industry response and more a scramble to reassure customers while protecting competitive ground. Brands began issuing advisories, clarifications and fuel guidance. Not all of it made sense. Most NEVs are designed to run on high-octane fuel, but in the rush to soothe customers, engineering advice was often ignored, a fact many eagle-eyed observers picked up on.
Deepal, for instance, edited visuals that showed its brand on petrol pump hoardings, turning a fuel crisis into a joke. Chery and Jetour’s car manuals were shared online, showing how their advisory went against their own documentation.
Here MG cut a unique path. It chose to stay silent. Now followed the next round of speculation: why is MG silent? Is it because it knows the other statements are compromises on engine quality? Did it know there would be a relaxation in the fuel prices? Some, hilariously and perhaps jokingly, even suggested it knew when the war was ending. Hit pieces were taken out on popular websites like PakWheels to further the narrative, as each and every brand came under fire from each and every other brand. As the market realised we are all in the same boat and attack pieces amount to mutually assured destruction, the wave of mutual attacks stopped.
But then a new tantalising rumour emerged. New models, still in wraps at Karachi port, and another version outside an Islamabad dealership appeared on social media. It was an IM Motors vehicle, its purpose and owner unknown. But since SAIC Motor is the parent company of both IM and MG, questions and excitement abounded. Could this be the mythical new model everyone had been talking about?
Just as this fantasy was taking off, a new contender emerged: MG is discontinuing the MG Essence after years in the market. Proof? Circumstantial evidence and anecdotes. But the media mill does not let such inconvenient things stop the press from churning.
This was in contrast to an op-ed by the CEO of MG Motors, Shao Jiangqiang, published in The Nation. There, he talked about the fuel crisis, Pakistan’s environmental challenges and solarisation rates, its close relations with China, and the burgeoning NEV market, all to make the claim that Pakistan is on the cusp of a transportation revolution and that government policymakers should support this transition.
It felt like the confident statement of a CEO who sees a long-term future in the country. After all, the company had announced a USD 20 million investment just a month earlier.
But the world of NEVs is never still. Before we could settle on this question a new one emerged
Prime Minister Shehbaz Sharif announced that the government will prioritize EVs as new government vehicles to reduce fuel costs. The response was immediate. EV companies were delighted, but not all could expect the same government windfall
Controversy has already scoured the market.
A newer technology, the REEV (range-extended electric vehicle), is structurally similar to a PHEV — engine, battery and motor — but with a larger battery, and the engine acting only as a generator while the motor drives the car.
OEMs – through shrewd lobbying – quickly secured a favorable classification from the Customs Classification Committee, labelling REEVs as BEVs instead of PHEVs. That opened the door to tax subsidies and potential government procurement.
However, this amounts to a technical exploitation. Despite having an engine and producing tailpipe emissions, REEVs deliver fuel cost outcomes broadly comparable to PHEVs. Yet, by qualifying for EV-specific tax relaxations, they enjoy significant duty and tax advantages, ultimately distorting the market and placing PHEVs at a clear disadvantage.
Other brands with HEVs and PHEVs, were incensed. A controversial classification had now kept them away from the government contracts.
In the midst of the heavyweights, electric scooter companies like Yadea seized the moment, launching an influencer-heavy campaign targeting the lower end of the market, with its message on fuel affordability hitting home.
Which reminds us that, even in this chaotic market, more chaos can always be introduced.
However, just as the crisis arrived it left too, at least at the face of it. Pakistan brokered a ceasefire in the Middle East, global stock prices rebounded anticipating the opening ofe the Strait of Hormuz and the resumption of normal fuel supply. Everyone breathed a well-deserved sigh of relief. Business as usual?
Not quite, one the day of writing this, a dark and mysterious video had just been dropped by MG on its social media. Three cars approached their darkened logo on the ground and the screen splashed “More than you can imagine” and “stay tuned”.
Perhaps at the invite of this tagline, imagination did run wild. Is it one car? Is it three? Is it a new PHEV, a new sedan? The speculators stood smug in their correct predictions and the enthusiasts got busy debating the possibilities. Even as Cherry Tiggo billboards had been going up across the city, a new challenger had emerged in the shadows.
So what is going on with NEVs? Your guess is as good as mine?
