Oil surge past $100 drives 250% spike in EV inquiries in Pakistan, Mega Motor says

Key facts

• Global oil prices surged past $100 per barrel amid Middle East tensions.
• Mega Motor, BYD's partner in Pakistan, reported a 200-250% surge in EV inquiries over two months.
• EVs offer up to 75% savings in fuel costs compared to conventional vehicles.
• Mega Motor launched an EV priced at around Rs7.3 million, targeting price parity with ICE and hybrids.
• The company is building a plant with annual capacity of 25,000 vehicles, operational later this year.
• Pakistan's government targets 30% EV penetration by 2030, which Mega Motor calls a 'tall order'.
• Engro Fertilisers' CCO Atif Muhammad gave a reassuring outlook on food security despite the energy crisis.
• Brent crude held near $114 a barrel after attacks on UAE and vessels.

Fuel price shock reshapes consumer behavior

Global oil prices have surged past $100 per barrel as Middle East tensions escalate, triggering a sharp shift in consumer interest toward electric vehicles in Pakistan, industry leaders said. Danish Khaliq, representing Mega Motor Company, Pakistan's partner of Chinese EV giant BYD, reported that customer inquiries for electric vehicles have jumped by 200 to 250 percent over the past two months. The surge is driven by the promise of up to 75 percent savings in fuel costs, he explained during a webinar hosted by The Express Tribune. Khaliq described the current crisis as a "tipping point" that could accelerate Pakistan's transition to new energy vehicles. "The auto sector is directly exposed to fuel price fluctuations, and what we're seeing now is a significant behavioral shift," he said. "Consumers are increasingly factoring in running costs, not just the upfront price of vehicles."

Mega Motor launches affordable EV, plans local production

Mega Motor, which began operations in Pakistan in 2025, has launched an electric vehicle priced at around Rs7.3 million, aiming for price parity with conventional internal combustion engine and hybrid vehicles. The company is not only testing the market through imports but also investing in local production. Khaliq announced that the firm is establishing a manufacturing plant with an annual capacity of 25,000 vehicles, expected to become operational later this year. However, Khaliq stressed that achieving the government's target of 30 percent EV penetration by 2030 remains a "tall order." He cited the need for consistent policies and long-term regulatory clarity to sustain investor confidence. The company's move comes as global oil prices remain elevated, with Brent crude holding near $114 a barrel after attacks on UAE and vessels.

Engro Fertilisers offers reassurance on food security

On the agriculture front, Atif Muhammad, Chief Commercial Officer at Engro Fertilisers, provided a relatively reassuring outlook on food security despite the broader energy crisis. Speaking at the same webinar, he highlighted the company's reliance on domestic gas to shield the sector from global price volatility. Engro's strategy aims to safeguard domestic fertiliser production, which is critical for Pakistan's food supply. Muhammad's comments came as the oil shock raises concerns about input costs for agriculture. The fertiliser sector, he indicated, is better positioned than transportation due to local gas resources, though the overall energy crisis remains a challenge.

Broader market and geopolitical context

The oil price surge is part of a wider geopolitical crisis, with Middle East tensions driving volatility. The PSX gained over 790 points in a late-session recovery, while gold and silver prices continued a downward trend across markets. Brent crude held near $114 a barrel after recent attacks on UAE and vessels, underscoring the fragility of supply chains. Industry leaders view the crisis as both a challenge and an opportunity. For the mobility sector, rising fuel costs are accelerating the shift to electric vehicles, while the agriculture sector leans on domestic gas to maintain stability. The government's 30 percent EV target by 2030 now faces heightened scrutiny as policy consistency becomes paramount.

Outlook: Tipping point or tall order?

The convergence of high oil prices and growing EV adoption presents a pivotal moment for Pakistan's energy transition. Mega Motor's investment in local production signals confidence in the market, but the company's own executives acknowledge the difficulty of meeting government targets without stable policies. The next budget is expected to address electric vehicle FBT concessions, which could further shape consumer demand. As the Middle East crisis continues to roil global energy markets, Pakistan's dual focus on EV acceleration and agricultural resilience will be tested. The coming months will reveal whether the current surge in EV interest translates into sustained market transformation or remains a temporary response to fuel price spikes.

The bottom line

• Oil prices above $100 per barrel have triggered a 200-250% increase in EV inquiries in Pakistan, with consumers seeking fuel cost savings of up to 75%.
• Mega Motor launched a Rs7.3 million EV and is building a 25,000-unit-per-year plant, but calls the 30% EV target by 2030 a 'tall order' without policy consistency.
• Engro Fertilisers relies on domestic gas to protect food security, offering a relatively stable outlook despite the energy crisis.
• Brent crude near $114 a barrel reflects ongoing geopolitical risks, with attacks on UAE and vessels heightening supply concerns.
• The PSX recovered over 790 points, while gold and silver prices fell, indicating market volatility amid the crisis.
• Policy clarity and FBT concessions in the upcoming budget will be critical to sustaining EV momentum beyond the current oil shock.