Chinese electric vehicle (EV) giant BYD is gearing up to launch its first locally assembled car in Pakistan by mid-2026, targeting the growing demand for electric and plug-in hybrid vehicles in the region. This move aligns with the company’s aggressive global expansion strategy and highlights Pakistan’s emerging importance in the EV landscape.
Why Pakistan? A Strategic Choice
Pakistan presents an ideal opportunity for BYD, given its rising urban population, increasing fuel prices, and government-backed EV incentives. The country’s EV market is still developing, but its potential is massive, especially with favorable policies like reduced tariffs for EV components and lower electricity costs for charging stations.
Moreover, Pakistan’s strategic location and growing auto market make it a valuable base for future exports to right-hand drive countries in the region. This calculated investment by BYD is not just about assembling cars—it’s about long-term market penetration and leadership.
BYD and Mega Motor Company: A Powerful Partnership
The EV plant, under construction since April 2025 near Karachi, is a joint venture between BYD and Mega Motor Company, a subsidiary of Hub Power (HUBCO). Karachi offers access to ports and infrastructure, making it the perfect launchpad for assembling and distributing vehicles both locally and regionally.
BYD’s initial strategy includes assembling imported parts with some non-electric components produced locally. While full manufacturing isn’t on the table yet, the company is clearly laying the groundwork for deeper localization.
Production Capacity and Launch Timeline
The plant will have an initial capacity of 25,000 units per year under a double-shift system. BYD expects to roll out its first vehicle by July or August 2026. Although mass production dates are still under wraps, BYD is confident that domestic demand will catch up quickly, minimizing the risk of overcapacity.
EV Market Growth in Pakistan
Pakistan’s EV and plug-in hybrid market is small but growing. In 2024, just around 1,000 EV units were sold. But that number is expected to triple or quadruple in 2025. BYD is setting its sights high—aiming for a 30–35% market share of this segment.
Since March 2025, BYD has been selling imported EVs in Pakistan. Though official numbers weren’t disclosed, the company confirmed that sales exceeded internal targets by 30%, indicating a strong demand even before local assembly begins.
Launch of Shark 6 Plug-in Hybrid Pickup
BYD is also launching its Shark 6 plug-in hybrid pickup truck, joining the ranks of MG and Haval in Pakistan’s growing PHEV market. Given the country’s limited charging infrastructure, plug-in hybrids offer a practical solution, combining electric driving with fuel-based backup.
Government Support for EVs
Pakistan’s government has been pushing hard for clean mobility. In January, it cut power tariffs by 45% for EV charging stations to drive adoption. This, combined with tax incentives and relaxed import duties, is creating a favorable climate for EV companies.
Profit and Future Outlook
BYD Pakistan reported Rs444 million ($1.56 million) in profit in Q1 of 2025, reflecting strong early performance. As infrastructure improves and EV awareness grows, the company is well-positioned to expand its footprint in the country and across the region.
Conclusion
BYD’s decision to assemble electric vehicles in Pakistan by 2026 is a significant milestone for both the company and the country. It signals growing investor confidence in Pakistan’s green mobility future and lays the foundation for a thriving EV ecosystem. With strong government backing, rising demand, and a clear roadmap, BYD is poised to transform Pakistan’s auto industry.