BYD looks to build new EV factory in Pakistan

According to an insider, BYD will soon start selling three models in Pakistan. These will include a saloon and an SUV, according to a report by Bloomberg. The insider also told the news agency that Pakistan is also planning its own car factory in Pakistan, in Karachi, the largest city in the world’s fifth largest country.

If all goes as planned, the factory is to be built near the deep-water harbour Qasim, in an industrial area where there are already car factories from Kia, Suzuki and Toyota. However, when prompted by media representatives, a BYD spokesperson refused to confirm the plans for the factory in Pakistan. However, he did confirm that BYD plans to start selling cars in the country in the near future, both fully electric vehicles and plug-in hybrids.

BYD is now the most successful car manufacturer in China, having sold three million cars last year and now selling its vehicles in 80 countries. While the vehicles were previously built exclusively in China, the company opened its first foreign production sites in Thailand and Uzbekistan in July. BYD is also planning to build electric cars in Brazil, Turkey and Hungary.

Meanwhile, the Chinese investment company ADM Group has announced plans to become involved in the eMobility sector in Pakistan. The company is planning to invest 250 million dollars in the sector. On the one hand, the money is to be channelled into expanding the charging infrastructure in the Asian country. On the other hand, ADM also wants to invest in a factory for electric cars, in which vehicles with a range of 300 kilometres are to be produced.

However, it is still completely unclear whether ADM intends to introduce its own brand for this purpose, as the company has not yet been active as a car manufacturer. However, it is also conceivable that the company is involved as a contract manufacturer or that it is financing a new factory for an established car manufacturer.

Whatever the case may be, there is clearly a lot happening in the eMobility sector in Pakistan soon. So far, sales of electric cars in the country are still marginal. However, the country has set itself the target of electric cars accounting for 30 per cent of new cars sold by 2030. Of course, this requires attractive vehicles and a well-developed charging infrastructure, which ADM intends to provide.

Update 20 August 2024

BYD has confirmed that it will, in fact, build a car plant in Pakistan. “We will establish Pakistan’s first NEV assembly plant… dedicated to producing BYD’s cutting-edge new energy vehicles,” Hubco Chief Executive Kamran Kamal told the news agency Reuters. The plant is due to begin operations in 2026.

Hubco, a wholly-owned subsidiary of The Hub Power Company Limited, has been partnering with BYD through its associated company, Mega Motor, to introduce New Energy Vehicles (NEVs) in Pakistan.

On top of setting up production facilities, BYD and its partners will set up “three state-of-the-art flagship stores and experience centres in Karachi, Lahore and Islamabad to showcase our commitment to quality and customer satisfaction and mirror global standards while catering to local preferences.” Moreover, BYD said at the launch event in Lahore that it plans to start selling two SUV models and a sedan in Pakistan from Q4/2024, namely the Sealion 6, BYD Seal, and BYD Atto 3.

bnnbloomberg.ca (BYD), pakistantoday.com.pk (ADM), reuters.com, propakistani.pk (both update)