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Electric motorcycle demand surges in Karachi but road conditions hinder growth

Electric motorcycle demand surges in Karachi but road conditions hinder growth

Key Takeaways

  • Demand for electric motorcycles has increased rapidly in Karachi due to rising fuel prices.
  • Pothole-ridden roads are a major obstacle to wider adoption of EV bikes in the city.
  • Karachi ranks fifth or sixth nationally in EV adoption despite growing dealership presence.

The demand for electric motorcycles (EV bikes) is on the rise in Karachi, driven by increasing fuel prices and lower maintenance costs. However, poor road conditions are hindering broader adoption of these eco-friendly vehicles.

According to Muhammad Sabir Shaikh, an auto and motorcycle analyst and dealer on Akbar Road, one of Karachi's main motorcycle markets, demand for EV bikes has outpaced supply. He noted that assemblers have prioritized deliveries to Punjab cities due to higher demand there, where road conditions are better. Karachi, the country’s largest city, now boasts over 25 EV bike showrooms on Akbar Road alone and around 200 across the city.

Despite this growth, Karachi ranks only fifth or sixth in national EV adoption rates. This is largely attributed to Punjab's superior road infrastructure, which has accelerated the shift towards electric motorcycles there. Sindh’s Mass Transit Authority has initiated a Pink Bike Distribution Programme, providing subsidized electric scooters to women, but more needs to be done to support wider EV adoption.

Syed Raza Mohsin, founder and CEO of VLEKTRA, highlighted that Karachi's deteriorating road infrastructure poses significant challenges. He stated, 'Karachi’s roads were not designed for the current volume of traffic, leading to frequent potholes and other issues.' Mohsin emphasized the need for sustained investment in road resurfacing and better drainage systems.

Mohsin also called for government support through measures such as waiving or reducing registration and token taxes specifically for EVs. He noted that while Karachi is seeing an increase in EV bike showrooms, the city's infrastructure remains a major hurdle. 'This is a multi-year infrastructure commitment, not something that gets fixed with an announcement,' he said.

The localisation of components is also crucial for the growth of the EV market. Mohsin mentioned that the industry is already localising some parts and aims to manufacture its own batteries and motors by 2027. However, currency fluctuations still impact customers due to reliance on imported batteries and motors.

While the number of EV dealerships in Karachi has increased rapidly, the city's poor road conditions continue to discourage wider adoption. Industry players are optimistic about long-term growth but acknowledge that significant infrastructure improvements are needed.

Demand for electric motorcycles has outpaced supply, with assemblers prioritising deliveries to Lahore, Faisalabad, Islamabad, Rawalpindi, Gujranwala, Sahiwal, Gujrat and other Punjab cities, where demand is estimated to be three times higher.

Muhammad Sabir Shaikh, Auto and motorcycle analyst and Akbar Road dealer

Karachi’s roads were not designed for the current volume of traffic, leading to frequent potholes and other issues. This is a multi-year infrastructure commitment, not something that gets fixed with an announcement.

Syed Raza Mohsin, Founder and CEO of VLEKTRA