Amidst Rising Fuel Prices, Are EVs the Future?
Fuel prices are at an all-time high in Pakistan which has led many to reconsider the significance of an EV footprint in Pakistan. Fuel prices will only elevate with time and with the surging inflation and increase in car prices due to the domino effect in action by the increase in fuel prices is making us reconsider our priorities.
Fuel prices have surged by a staggering total of Rs. 60 in a week's gap. Currently, petrol crossed the Rs. 209 mark whereas it used to be drastically cheaper in the last decade.
Thus, with rising fuel prices electric vehicles can get traction as people start looking for cost-effective mobility options. The operational costs of traditional petrol vehicles have increased continuously with time and they are expected to amplify in the near future too.
Electric vehicles’ total cost of ownership (TCO) is cheaper than petrol and diesel-powered vehicles.
TCO is considered as the summation of all the expenses incurred since the car comes into your ownership. It includes the interest payments payable to banks, maintenance costs, road tax payments, fuel costs for daily usage, and even the salvage value of a vehicle i.e. its price after all depreciation has been fully expensed. All these factors make EVs almost a third cheaper than petrol cars.
The cost of owning and operating an electric vehicle is marginally lower as compared to the prevalent internal combustion engine (ICE) counterparts.
But if the TCO of EVs is cost-efficient why do they make only a small fragment of the total cars we see on the road?
Higher Upfront Cost as a Barrier
Although electric vehicles are cheaper in the long run their higher upfront cost at the time of purchase is a hurdle to their prevalence. Normally an EV costs almost 40% more than its equivalent petrol vehicle. Even though EV owners can save a lot monetarily on operational costs, the initial purchase price makes them hesitant to take the big leap.
Currently, in Pakistan, the EV market is still in its nascent period and there are only a few expensive EV options available. MS ZS EV, Audi E-Tron, and BMW IX are the notable luxe electric vehicles that are available in Pakistan. However, due to their hefty price range, they are out of the reach of a common man.
With the skyrocketing petroleum rates, affordable EVs can be the solution to the fuel crisis in Pakistan. Car experts believe that affordable EVs like the Wuling Honguang Mini EV and Changan Lumin Corn can be a success in the Pakistani auto market.
Despite their unavailability in the country, there is a discussion going around that Pakistan can be a promising market for good-quality affordable EVs. Switching to electric vehicles can be the most efficient way to combat the soaring fuel prices over the long term.
There is a generalized narrative in the society that Electric vehicles are good for the environment and climate change. This reasoning is not good enough for the prospective car buyers to opt for EVs as not everyone is ‘woke’ enough to make a purchase on this basis.
In today’s ecosystem, whether the consumer chooses an electric vehicle or a traditional ICE vehicle will not be a ‘green’ decision. It will be due to their affordable pricing. The price-sensitive Pakistanis are bound to select EVs if they learn that they are easy on the pocket as compared to petrol and diesel car.
The market for Affordable EVs
Dynasty IT, Crown Electric Cars, and Zotye Z100 are some of the price-efficient cars that became available to Pakistani audiences over the years. However, most of them flopped and closed their businesses over time.
Now is the right time to introduce electric cars in Pakistan!
Realizing the need of the hour, Nayyar Private Limited has decided to launch a budget-friendly electric vehicle in Pakistan. It is named Rinco Aria- a subcompact all-electric hatchback with a single electric motor that produces 19 horsepower (hp) and 75 Newton-meters (Nm) of torque.
Currently, there is no car in its league however it will directly compete against the likes of Suzuki Alto, United Bravo, and Prince Pearl. The car has driving two modes: eco and sport. In eco mode, the car can travel up to a speed of 60 km/h whereas in sport mode the car can reach up to 100 km/h.
Some of its other notable features are:
- Powered Windows
- Keyless Entry
- Reverse Camera
- Parking Sensors
- Infotainment System with Apple Carplay Connectivity
Currently, the government is imposing numerous taxes and duties that increase the prices of cars. In order to facilitate the common man and solve the commuting woes, we need a better travel infrastructure. Introducing EVs can help solve the issue of fuel consumption as fuel prices continue to surge.
Undoubtedly the future of cars is electric and the future is here!