KARACHI: A simmering dispute has emerged in Pakistan’s automotive industry as a Chinese assembler and a local importer—who claims to be an automaker despite lacking a production facility—reportedly lobby the Customs Classification Committee to reclassify Range-Extended Electric Vehicles (REEVs) as pure Battery Electric Vehicles (BEVs).
Industry insiders warn that the move aims to secure zero-emission tax incentives for vehicles that still rely on internal combustion engines (ICE), potentially distorting market competition and causing billions of rupees in revenue losses for the national exchequer.
While REEVs use electric motors to drive the wheels, they carry a petrol engine onboard to recharge the battery. Critics argue that because these vehicles consume fuel, produce tailpipe emissions, and require conventional engine maintenance, they cannot be treated as zero-emission vehicles.
Global customs standards, including the World Customs Organisation (WCO), consistently classify any vehicle with an internal combustion engine as a hybrid, not a pure EV. A source noted that even China—the world leader in electric mobility—classifies REEVs as hybrids, meaning there is no technical basis for Pakistan to treat them as BEVs.
The Pakistan Automotive Manufacturers Association (PAMA) has formally highlighted the issue, warning that misclassifying REEVs would grant them an artificial cost advantage over genuine EV manufacturers and threaten the objectives of the New Energy Vehicle (NEV) policy, which promotes clean mobility, reduced oil dependency, and lower emissions.
“REEVs may offer practical benefits to consumers, but they are not zero-emission vehicles, and no global authority treats them as such,” said an industry expert. Authorities have been urged to ensure that policy incentives remain aligned with international norms to protect both the market and public revenue.
Story by Aamir Shafaat Khan
