Chinese electric vehicle (EV) giant BYD is set to roll out its first Pakistan-assembled vehicle by July or August 2026, signaling a strategic expansion into South Asia’s growing EV market. The move aims to meet increasing regional demand for electric and plug-in hybrid vehicles while leveraging local incentives and production partnerships.
The new facility, under construction since April near Karachi, is a joint venture between BYD and Mega Motor Company, a subsidiary of Pakistani energy conglomerate Hub Power. The project reflects BYD’s broader global push beyond China, where it faces intense price competition.
“We do not foresee excess capacity in our system as demand in Pakistan will catch up,” said Danish Khaliq, Vice President of Sales and Strategy at BYD Pakistan, in a statement to Reuters.
BYD plant in Pakistan
Initially, the Karachi-based plant will assemble 25,000 vehicles annually on a double-shift schedule. While the facility will begin operations with imported EV components, it will also produce non-electric parts locally. Khaliq did not specify when mass production would commence or when full capacity might be achieved.
The early production phase will cater exclusively to Pakistan’s domestic market. However, BYD is keeping open the possibility of exports to right-hand drive countries in the region, depending on freight costs and overall business viability.
Accelerating Sales and EV demand in Pakistan
BYD began delivering imported EVs to Pakistan in March 2025. Though precise sales numbers remain undisclosed, Khaliq noted that several hundred units sold so far have already exceeded internal targets by 30%.
The company anticipates rapid growth in Pakistan’s EV sector. Khaliq estimates that the market for electric and plug-in hybrid vehicles will triple or even quadruple in 2025 from around 1,000 total units in 2024. BYD is aiming for a 30–35% share of this expanding segment.
Profit and Policy Support
According to a March 2025 filing by Hub Power, BYD Pakistan generated a profit of 444 million Pakistani rupees (approximately $1.56 million) in the first quarter.
The Pakistani government has been taking measures to support EV adoption, including a 45% reduction in electricity tariffs for EV charging stations announced in January. This policy aims to encourage both consumer uptake and private-sector investment in charging infrastructure—critical for an all-electric future in a country where plug-in hybrids are currently viewed as the more practical choice.
EV growth in Pakistan
BYD’s expansion into Pakistan underscores the growing importance of emerging markets in the global EV landscape. With strong government support, a rising consumer base, and a regional footprint in mind, the company is positioning itself to lead in a segment that is just beginning to take off in South Asia and the Middle East.
As infrastructure and regulatory environments evolve, Pakistan could emerge as a key EV hub for right-hand drive markets across the region mirroring trends already underway in Turkey and Southeast Asia.
As part of its local rollout strategy, BYD will launch its Shark 6 plug-in hybrid pickup truck in Pakistan on Friday. The model is expected to compete with existing PHEV offerings such as China’s MG SUV and upcoming entries from Haval.