Pakistan’s First 100% Locally Made Electric Car Is Coming And It’s Under Rs1 Million

For the first time in Pakistan’s 77-year history, a car built entirely with locally manufactured components is rolling off the production line. This is not just a story about automobiles. It is a story about national pride, economic ambition, and a cleaner future for millions of Pakistani families.

According to Engineering Development Board (EDB) CEO Hammad Mansoor, the Made-in-Pakistan electric vehicle (EV) is expected to hit the market by June or July 2026, and it is being designed specifically for affordability, with a price tag below Rs1 million.

Why This Matters: The End of Automotive Monopoly

For decades, Pakistan’s automotive market has been dominated by a handful of large companies, keeping vehicle prices artificially high and out of reach for ordinary citizens. Mansoor pointed out that this monopoly is finally over, and falling prices across the board from established automakers are proof of it.

The new locally produced EV is aimed squarely at motorcycle users, a massive segment of Pakistan’s population, giving them an affordable pathway to upgrade from two wheels to four. With a range of 180 to 200 kilometres on a single charge, it is practical for everyday commuting needs across Pakistani cities.

Lahore at the Heart of Pakistan’s EV Revolution

The first production plant for the Made-in-Pakistan EV will be established in Lahore. Two to three Pakistani companies have already expressed strong interest in manufacturing these vehicles, signaling that the private sector is ready to back this vision.

The government, under the prime minister’s direction, is also planning to reduce taxes on vehicles in the upcoming federal budget to further encourage local manufacturers and make cars more accessible to the public.

Massive Subsidies for Electric Two and Three-Wheelers

The EV car is just one piece of a much larger puzzle. The government has unveiled a Rs100 billion subsidy programme to promote electric two-wheelers and three-wheelers across Pakistan over the next four years, targeting 2.2 million vehicles in total.

In the first phase, 40,000 electric motorcycles and rickshaws are being subsidised. Buyers of electric motorbikes will receive an Rs80,000 subsidy, while electric three-wheeler rickshaws will attract an Rs400,000 subsidy. This could be a game changer for small business owners and daily commuters.

After Eidul Fitr, an additional 77,000 units will be brought into the programme, followed by 250,000 more after July 2026, with the full rollout continuing through subsequent years.

Local Batteries: The Final Piece of the Puzzle

Perhaps most significantly, four lithium battery manufacturing plants are being established in Pakistan. The first of these factories is expected to produce locally made lithium batteries by May 2026, just ahead of the EV car’s launch.

This is a critical development. A truly local EV ecosystem requires local energy storage. By producing batteries domestically, Pakistan can reduce its dependence on imports, lower costs, and eventually build an export-ready industry.

SMEs: The Backbone of This Revolution

The new automotive policy being shaped by the government places small and medium enterprises (SMEs) at the centre of the story. Rather than allowing large assembly plants to import components, the policy is designed to require locally produced auto parts from SMEs to be used in all Made-in-Pakistan vehicles.

This approach links EV production directly to GDP growth, job creation, and the expansion of Pakistan’s industrial base. It is exactly the kind of multiplier effect the economy needs.

The Road Ahead

Pakistan’s EV journey is beginning not at the luxury end of the market but at its most democratic point. A sub-Rs1 million car for the masses, electric motorcycles for daily workers, and battery plants to power it all domestically.

The vision is ambitious, but the pieces are falling into place.

If the government delivers on its promises, 2026 could be remembered as the year Pakistan finally took its seat at the global clean energy table, not as an importer but as a maker.