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BYD Expands into Pakistan with New Assembly Plant
Chinese electric vehicle (EV) giant BYD is set to make a significant move in the South Asian market by launching its first locally assembled car in Pakistan by July or August 2026. This initiative aims to meet the rising demand for electric and plug-in hybrid vehicles in the region, according to a company executive.
BYD, currently the world’s largest EV manufacturer, has been aggressively expanding its presence beyond China. This expansion comes as the company faces intense competition in its domestic market, where it is engaged in a fierce price war. The new plant in Pakistan is designed to tap into the growing demand from emerging markets and take advantage of the incentives offered by the Pakistani government.
The assembly plant, which has been under construction since April, is located near Karachi. It is a joint venture between BYD and Mega Motor Company, a subsidiary of the Pakistani utility Hub Power. Danish Khaliq, vice president of sales and strategy at BYD Pakistan, shared details about the project with Reuters.
Initially, the facility will have an annual production capacity of 25,000 units, operating on a double shift. However, Khaliq did not provide specific information on when the plant would reach full capacity or when mass production would begin. The plant will start by assembling imported parts, with some local production of non-electric components. Initially, the vehicles produced will be aimed at the domestic market, but there is potential for exports to right-hand drive countries in the region, depending on freight costs and business economics.
“We do not foresee excess capacity in our system as demand in Pakistan will catch up,” Khaliq said. BYD began delivering imported EVs in Pakistan in March, marking the beginning of its direct market entry.
Khaliq did not specify exact sales figures but mentioned that the sales of a few hundred cars had exceeded internal targets by 30%. He also expressed confidence in the growth of the EV and plug-in hybrid (PHEV) market in Pakistan. According to his projections, the market size could grow three to four times in 2025 compared to around 1,000 total units in 2024. BYD is targeting a 30-35% share of this segment.
Financially, BYD Pakistan reported a profit of approximately 444 million rupees ($1.56 million) in the 2025 March quarter, based on a HUBCO filing. The company is also preparing to launch its Shark 6 plug-in hybrid pickup truck in Pakistan on Friday. This follows the introduction of a PHEV SUV by China’s MG, while rival Haval is expected to enter the segment soon.
Plug-in hybrids are particularly appealing in Pakistan due to the limited availability of charging stations for all-electric vehicles. To support the adoption of EVs, the government reduced power tariffs for chargers by 45% in January, aiming to encourage more people to switch to electric mobility.
Key Developments in Pakistan’s EV Market
- BYD’s Strategic Entry: The company is leveraging its global leadership in EV manufacturing to capture a growing market in Pakistan.
- Local Assembly Plans: A new plant near Karachi is being built in partnership with Mega Motor Company, a subsidiary of Hub Power.
- Production Capacity: The facility is expected to initially produce 25,000 units annually, with potential for expansion.
- Market Growth Projections: Sales of EVs and PHEVs are anticipated to triple or quadruple in 2025.
- Government Incentives: Reduced power tariffs for charging stations aim to boost EV adoption.
- Product Launches: BYD plans to introduce the Shark 6 PHEV, joining other brands like MG and Haval in the market.
This expansion marks a critical step for BYD as it continues to broaden its international footprint and adapt to the unique needs of emerging markets. With the right combination of strategic partnerships, local production, and government support, the company is well-positioned to capitalize on the evolving automotive landscape in Pakistan.
