A dispute has emerged within Pakistan’s auto industry amid reports that certain market players are lobbying to have Range-Extended Electric Vehicles (REEVs) classified as pure electric vehicles, a move that industry insiders warn could undermine policy objectives and result in significant revenue losses.
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Sources say a Chinese assembler, along with a local importer presenting itself as an automaker despite lacking production facilities, is urging the Customs Classification Committee to reclassify REEVs as Battery Electric Vehicles (BEVs). The proposed change would allow such vehicles to qualify for lower duties and taxes reserved for zero-emission electric cars.
REEVs are powered by electric motors but also carry an onboard petrol engine that generates electricity to recharge the battery. Critics argue that because these vehicles consume fuel, emit exhaust gases and require conventional engine maintenance, they do not meet the criteria of zero-emission BEVs.
Industry representatives point out that international customs standards are clear on the matter. According to explanatory notes of the World Customs Organisation, any vehicle equipped with an internal combustion engine falls under the hybrid category rather than being considered a pure electric vehicle.
Government considers imposing new taxes on imported electric vehicles, triggering debate over revenue needs, local industry protection, and EV affordability.#EVs #Pakistan #ConnectedPakistan pic.twitter.com/fqO0r4jhKf
— Connected Pakistan (@ConnectedPak) December 31, 2025
Stakeholders also note that even China, the global leader in electric mobility and the country of origin for many REEV models, classifies such vehicles as hybrids. Chinese customs documentation reportedly places REEVs in the hybrid category, raising questions about the technical justification for treating them differently in Pakistan.
The Pakistan Automotive Manufacturers Association has formally flagged the issue with authorities, warning that misclassification could cost the national exchequer billions of rupees. Under existing policies, BEVs enjoy preferential tax treatment to encourage investment in clean mobility and charging infrastructure.
Granting the same benefits to REEVs, industry players argue, would create an uneven playing field and discourage companies investing in fully electric technologies. Experts caution that such a move could trigger a surge in REEV imports aimed primarily at exploiting tax incentives.
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They stress that while REEVs may offer practical advantages for some consumers, treating them as zero-emission vehicles would contradict international norms and weaken the country’s New Energy Vehicle policy, which aims to reduce oil dependence and cut emissions.