BYD Enters Pakistani Electric Vehicle Market

By Ariba Shahid
KARACHI (Reuters) – Up to 50% of all vehicles bought in Pakistan by 2030 will be electrified in some form, aligning with global targets, according to BYD (SZ:002594) Pakistan, a partnership between China’s BYD and Pakistani car group Mega Motors.

Chinese electric vehicle giant BYD, backed by Warren Buffett, announced its entry into Pakistan last month, targeting the South Asian market of 250 million people.

Plans are in place to open an assembly plant by early 2026, with vehicle sales commencing later this year, following the launch of three models in August.

Kamran Kamal, BYD’s spokesperson in Pakistan and CEO of Hub Power (which owns Mega Motors), stated, “I see conversion to new energy vehicles (NEV) at up to 50%.”

This ambitious target comes as Pakistan’s auto sector faces challenges, with Japanese automakers like Toyota, Honda, and Suzuki dominating the market. Vehicle sales recently hit a 15-year low in the fiscal year ending June.

Competition is emerging from South Korea’s KIA and Chinese companies like Changan and MG, which offer hybrid options. BYD Pakistan is noted as the first major entrant in new energy vehicles.

The uptick in hybrid electric vehicle sales has been significant, with more than double the sales in the past year. Achieving 30% NEV adoption by 2030 is seen as feasible, but reaching 50% may present infrastructure challenges, according to Muhammad Abrar Polani, an auto sector analyst at Arif Habib Limited.

Kamal indicated that the government plans to incentivize the construction of charging infrastructure to address these challenges. Local media reported in August that the power ministry had drafted EV charging station standards, and affordable electricity is being considered.

BYD Pakistan is collaborating with two oil marketing companies to create a charging infrastructure network, aiming to establish 20 to 30 charging stations in the initial phases alongside its vehicle rollout.

Initially, BYD Pakistan will sell fully assembled vehicles, which incur higher import charges than those shipped in parts and assembled locally. Kamal emphasized the focus on getting locally assembled cars on the roads swiftly due to current duty challenges on imports.

BYD Pakistan is currently assessing the size for a new plant, with further details on investments and partnerships with power utility HUBCO planned for future announcements.