BYD Plans to Launch First Locally Assembled Car in Pakistan by Mid-2026

According to a report by Reuters on July 23, a senior executive from Chinese electric vehicle manufacturer BYD announced that the company plans to introduce its first locally assembled vehicle in Pakistan by July or August 2026 to meet the growing demand for pure electric vehicles and plug-in hybrids in the region. As a leading global electric vehicle manufacturer, BYD has been rapidly expanding its overseas markets as it faces intense price competition in its domestic market. The establishment of BYD's factory in Pakistan not only addresses the rising demand for electric vehicles in emerging markets but also allows the company to leverage the incentives provided by the Pakistani government. Danish Khaliq, Vice President of Sales and Strategy for BYD Pakistan, noted that construction of the factory commenced in April of this year near Karachi, as part of a joint venture with HUBCO's subsidiary, Mega Motor Company. Khaliq revealed that the factory plans to operate with a dual shift initially, with an annual production capacity of 25,000 vehicles. However, he did not provide details on when the factory would reach full production capacity or the specific start date for mass production. He mentioned that the factory will initially assemble imported components and localize some non-electric parts. The initial production capacity will cater to the domestic market, and the factory may export vehicles to other right-hand-drive countries in South Asia in the future based on transportation costs and market conditions. Khaliq expressed optimism, stating that the factory is not expected to face overcapacity issues as market demand in Pakistan is projected to rise. Since March this year, BYD has been delivering imported electric vehicles in Pakistan. While Khaliq did not disclose specific sales figures, he mentioned that 'hundreds of vehicles' have exceeded internal targets by 30%. He anticipates that the market for pure electric and plug-in hybrid vehicles in Pakistan will grow three to four times from approximately 1,000 units in 2024. BYD aims to capture a 30% to 35% market share. Notably, according to HUBCO's filing, BYD Pakistan reported a profit of around 444 million Pakistani Rupees (approximately $1.56 million) in the first quarter of this year. BYD is set to launch its Shark 6 plug-in hybrid pickup truck in Pakistan on July 25. Chinese automaker SAIC's MG brand has already been selling a plug-in hybrid SUV in Pakistan, while Great Wall Motors' Haval brand is also preparing to enter the plug-in hybrid vehicle market in Pakistan. In the context of a shortage of electric vehicle charging stations in Pakistan, plug-in hybrid vehicles have become a more practical choice. The Pakistani government has reduced charging tariffs by 45% as of January 2025 to encourage the adoption of electric vehicles and the establishment of private charging stations.