BYD and Hubco Team Up for Pakistan's First EV Assembly Plant

The collaboration is spearheaded by Hubco’s subsidiary, Mega Motor, marking BYD’s first foray into South Asia following obstacles faced in India, where investments from Chinese firms are heavily restricted. Hubco’s CEO, Kamran Kamal, expressed aspirations for Pakistan to become a leading carmaker in the region by the end of the decade. He emphasized the importance of focusing on the export market for competitive growth.

To facilitate this ambition, Pakistan's finance minister, Muhammad Aurangzeb, has indicated government support for BYD’s plans, particularly for exporting to neighboring regions like Africa, Bangladesh, and Sri Lanka. He highlighted the necessity for Pakistan to become an export hub, as the country has historically lagged in vehicle exports despite the presence of Korean and Japanese automotive brands.

While the specifics of the investment and vehicle models for the Karachi assembly plant remain under discussion, Hubco aims to sell approximately 100,000 BYD plug-in hybrid and fully electric vehicles annually by 2030, potentially constituting a quarter of the total car sales in Pakistan.

As BYD expands its operations globally, establishing factories in locations such as Turkey, Hungary, and Brazil, industry experts caution that navigating diverse regulatory environments and labor laws will present new challenges. However, the company's strategic international growth aims to offset tariffs on Chinese exports, including electric vehicles.