Saturday, June 15, 2024

Pakistan Keeping Up with the Global Trend of New Energy: Expert

“Electric mobility has become indispensable for Pakistan. Entities striving to introduce electric mobility in Pakistan, including Lahore University of Management Sciences (LUMS) and local enterprises, are actively involved in diverse engagements related to the development of the Electric Vehicle (EV) value chain in the country,”highlighted Prof. Nauman Ahmad Zaffar, Director of Energy and Power Systems Cluster and the National Incubation Centre, Lahore.

Developing EVs in Pakistan is a potential solution for the country both in terms of improving the quality of the environment and making full use of electricity. In a recent interview, Prof. Zaffar noted that the transport sector contributes almost 43% to the total airborne emissions in the country. Meanwhile, Pakistan has surplus electricity generation capacity, resulting in accumulation of a large sum of capacity payments. Under such situation, there is a need to introduce non-seasonal and flexible loads, and EVs have emerged as an effective solution. 

Many favorable factors, such as the Pakistani government’s supportive attitude towards the EV, have contributed to the development of the National EV policy. Pakistan’s EV market is widely favored by international companies. Chinese companies, including Chery, MG, Changan, BAIC and Haval have also been making a push in recent years.

Yin Tongyue, a member of the Chinese National People’s Congress, chairman and Party secretary of Chery Holding Group, said that the automobile industry, as a pillar industry of the national economy, must shoulder historical, social, moral and economic responsibilities, seize the current new round of technological revolution and globalization, and accelerate the development of China to a “auto power”.

Chery has started its journey of R&D of fuel-efficient and new energy vehicles in 1999, making it the first ever Chinese auto manufacturer to enter the field of new energy technology. Through years of development, Chery has established a well-established R&D system for new energy technologies, covering vehicle integration, core technologies and core component development capabilities. To date, it has applied for more than 900 patents in the new energy sector and has obtained more than 600 patents, leading the auto industry.

While in the PHEV hybrid segment, Chery has made an early breakthrough. DHT, the full-featured hybrid transmission independently developed by Chery, has four key advantages by virtue of the key technologies of “3 engines, 3 gears, 9 working modes and 11 speed ratios”. In addition, Chery’s “super hybrid” brings the hybrid vehicle industry with a significant solution to solve the problem of weak power output.

Backed by hybrid technology, the TIGGO 8 PRO e+, Chery’s first PHEV model to go into mass production, gained global attention once it was launched. “In the future, Chery’s subsequent PHEV models will also cover the global market including Pakistan, bringing a greener travel experience for Pakistani consumers, setting a new standard for Pakistan’s automobile industry, and helping Pakistan’s market transition from traditional fuel vehicles to new energy vehicles,” said Felix Hu, country director of Chery Automobile in Pakistan.

PHEVs are very complex machines due to the presence of two complete distinct drivetrains, i.e., electric, and gasoline-based, in a single vehicle. Due to this, PHEVs tend to cost more than their all-electric counterparts. Furthermore, the presence of two drivetrains adds substantially to the complexity of indigenous manufacturing, and this, combined with the cost of maintenance and after-sales services, makes the barriers to adoption even higher.

China has achieved a significant degree of localization in EV manufacturing, with little reliance on imports. In Pakistan, EV manufacturing will need to rely strongly on imports in the short term due to the limited capacity of local manufacturers to develop various modules/components of EVs, especially batteries and battery cells.

Prof. Nauman Zaffar told the reporter that the price of the battery in a BEV constitutes almost half of the price of the vehicle. “The supply chain of materials used in manufacturing of batteries for EVs is highly competitive with China occupying a significant market share. This presents a valuable opportunity for Pakistani auto manufacturers to collaborate with their Chinese counterparts in battery cell manufacturing, which can help bring down the upfront purchase price of EVs. This could be a G2G or B2B opportunity for sustainable collaboration that could create a win-win situation”, he concluded.

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