Fuel crisis drives surge in electric bike demand

A sharp rise in fuel prices triggered by tensions around the Strait of Hormuz is accelerating Pakistan’s shift toward electric vehicles, with demand for electric motorbikes surging across the country.

Dealers and manufacturers report a significant increase in sales and enquiries as consumers look for alternatives to costly petrol. In Rawalpindi, mechanic Haseeb Bhatti said his business of converting petrol bikes into electric ones saw a 70% jump in sales in March alone.

The surge comes as Pakistan, which imports most of its oil through the Strait of Hormuz, faces mounting economic pressure due to rising global fuel prices. Fears of potential shortages have further pushed consumers toward electric options.

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According to industry estimates, around 40% of Pakistan’s petrol consumption is used by motorcycles and rickshaws, making the segment highly sensitive to fuel price fluctuations. With petrol costs rising sharply, many households are finding it increasingly difficult to manage transportation expenses.

Electric two-wheeler sales have already been on the rise, nearly tripling last year to 90,000 units. This year, they account for more than 10% of monthly sales for the first time, signalling a major shift in consumer behaviour.

Government initiatives, including the Pakistan Accelerated Vehicle Electrification (PAVE) plan, are also supporting the transition through subsidies and interest-free loans. Officials estimate that electrifying millions of vehicles could save hundreds of millions of dollars in fuel imports annually.

The shift is further supported by the country’s growing adoption of solar energy, which provides a cost-effective way to charge electric bikes at home.

However, experts caution that challenges such as limited charging infrastructure and weak after-sales service networks could slow long-term growth if not addressed.