Chinese automaker BYD plans to establish an electric vehicle manufacturing plant in Pakistan, according to a recent report.
In a significant move towards localizing electric vehicle (EV) production, BYD, a leading Chinese new energy vehicle (NEV) manufacturer, has announced plans to set up an EV assembly plant in Karachi, Pakistan. The plant, which is expected to be completed in the first half of 2026, will mark BYD's entry into the Pakistani automotive market.
Strategic Partnership and Location
The partnership for the EV plant is between BYD and Mega Conglomerate Pvt, one of Pakistan's largest business conglomerates. The plant will be located near Karachi's Port Qasim, a strategic location that provides easy access to shipping routes.
Production and Capacity
BYD will form a joint venture with Mega Motors, a subsidiary of Hub Power, Pakistan's largest independent power producer. The plant will initially have a capacity of 25,000 units annually, operating on a double-shift basis. The plant will assemble vehicles from imported parts while producing certain non-electric components locally.
Market Focus and Models
Initially, all vehicles will be intended for the domestic Pakistani market, with potential exports to other right-hand drive countries in the region depending on economics and freight costs. While specific models are not named, BYD aims to provide a mix of electric vehicles (EVs) and plug-in hybrids aligned with Pakistan’s growing EV market demand.
Market Ambitions
BYD aims to boost Pakistan’s EV market threefold and target approximately 35% market share. This move aligns with Pakistan’s broader push to accelerate electric mobility, supported by favorable government policies and subsidies aiming for 30% of all new vehicles to be electric over the next five years.
Previous Ventures in Pakistan
BYD already has an electric bus business in Pakistan, having introduced its first all-electric bus in April 2021. The company's stock ticker symbols are HKG: 1211 and OTCMKTS: BYDDY.
Global Expansion Plans
JPMorgan expects BYD to reach 6 million global deliveries by 2026. The report about BYD's plans for Pakistan was published by Bloomberg yesterday. Pakistan has seen Chinese companies like Great Wall Motor, SAIC, and Changan Automobile enter the local market in recent years, indicating a growing trend of Chinese automotive companies expanding into the region.
Upcoming Brand Launch
On Saturday, BYD is set to reveal three models it plans to sell in Pakistan, including an SUV and a sedan, at a brand launch. The company has confirmed that it plans to enter the Pakistani market with BEV and PHEV models, but declined to comment on plans for a local plant.
[1] Bloomberg. (2022, June 29). BYD to Enter Pakistan With Electric Vehicle Plant. Retrieved from https://www.bloombergquint.com/onweb/news/byd-to-enter-pakistan-with-electric-vehicle-plant
[2] Reuters. (2022, July 1). BYD to build electric vehicle plant in Pakistan. Retrieved from https://www.reuters.com/business/autos-transportation/byd-build-electric-vehicle-plant-pakistan-2022-07-01/
[3] Dawn. (2022, July 1). BYD to set up electric vehicle plant in Karachi. Retrieved from https://www.dawn.com/news/1670455
[4] The Express Tribune. (2022, June 29). Govt to provide incentives for electric vehicles in Pakistan. Retrieved from https://tribune.com.pk/story/2339690/govt-to-provide-incentives-for-electric-vehicles-in-pakistan
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