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Chinese giant BYD partners with HUBCO subsidiary to introduce EVs in Pakistan

Published June 21, 2024
A man cleans a BYD e-SEED GT concept EV during the media day for the Shanghai auto show in Shanghai, China. Photo: Reuters
A man cleans a BYD e-SEED GT concept EV during the media day for the Shanghai auto show in Shanghai, China. Photo: Reuters

HUBCO announced on Friday that its wholly-owned subsidiary (Hub Power Holdings) – through its associated company Mega Motor Company (Private) Limited – is entering into a new line of business in electric vehicles with BYD Auto Industry Company Limited, the world’s leading new energy vehicle manufacturer.

The development was shared by HUBCO in a notice to the Pakistan Stock Exchange (PSX) on Friday.

“We hereby convey the following information: Hub Power Holdings Limited, a wholly-owned subsidiary of The Hub Power Company Limited, through its associated company, Mega Motor Company (Private) Limited, is entering into a new line of business in electric vehicles, with BYD Auto Industry Company Limited, in Pakistan,” HUBCO said in its notice.

Earlier in April, BYD announced a strategic collaboration with its local partner Mega Conglomerate (Private) Limited to introduce innovative New Energy Vehicle (NEV) solutions in Pakistan.

BYD, known for its pioneering work in electric vehicle production, notably outpaced Tesla in 2023 to claim the top spot for the highest number of electric vehicles manufactured globally.

This partnership comes at a critical juncture as Pakistan aims to reduce its carbon footprint and adopt more energy-efficient modes of transportation.

Meanwhile, HUBCO in its notice on Friday said that the consummation of this new venture will include execution of definitive agreements and purchase of assets and is subject to corporate and regulatory approvals and consents.

Experts hail Chinese EV giant BYD’s entry to Pakistan market

“This is an overall positive development for the country’s auto sector, as the entry of new players will promote competition in the local market,” Sunny Kumar, Deputy Head of Research at Topline Securities, told Business Recorder.

The analyst was of the view that further details regarding the deal need to come to light such as EV models to be introduced, prices, battery range etc.

“Normally EVs are priced higher than the gasoline-based autos. Therefore, it is expected that the EVs will most probably target the high-income segment.

“Moreover, there is also an issue of lack of EV-related infrastructure in the country. EVs have not attracted much traction in Pakistan due to a lack of charging stations and other infrastructure,” he said.

Pakistan, like many other developing countries, faces challenges related to air pollution and rising greenhouse gas emissions. The introduction of BYD’s EVs is expected to help address these issues by offering a cleaner alternative to traditional gasoline and diesel vehicles.

However, for a low-income nation like Pakistan, environmental issues generally take a back seat.

“In Pakistan, there is not much concern regarding the environmental impact. The customers generally prioritise cost over other aspects,” said Kumar.

Comments

200 characters
Usman Jun 21, 2024 04:23pm
Tax them.its for the rich.
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Javaid Bhai Jun 21, 2024 05:48pm
They are getting free money due to capacity payments and are funding new ventures. Capitalism at its finest
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Salman Babri Jun 21, 2024 06:33pm
@Usman, Indeed. Tax any good initiative so we can quickly secure all top 10 positions in most polluted cities in the world.
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Dr Zainab, Melbourne Jun 21, 2024 08:04pm
Finally more Chinese firms are coming. A welcome and positive sign for Pakistan. Pakistanis shouldn't miss this opportunity and be a huge market for Chinese products.
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Dr Zainab, Melbourne Jun 21, 2024 08:08pm
Firmly embracing China and attracting Chinese companies is the only way out of Pakistan's economic mess.
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Ali Jun 21, 2024 10:34pm
If BYD is smart they will introduce cars at good price equivalent to corollla , civic , city and alto with range of 500km
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Muhammad Ali Raza Jun 21, 2024 11:04pm
The main objective of EVs should be to replace FCV as soon as possible. So to get deep penetration, these should be price and efficiency competitive.
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KhanRA Jun 22, 2024 02:31am
@Dr Zainab, Melbourne , Firmly embracing China means you will be risking geopolitical weakness on the world stage. We need good relations with everyone, and stopping putting all eggs into one basket!
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TAUSEEF RAZZAK Jun 22, 2024 05:54am
How much of the production will be allowed to export?
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M. Zahid Iftikhar Jun 22, 2024 09:42am
Good development. We must shift away from fossil fuels & use electricity for 3 reasons: environment, import bill, & efficiency.
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Owais Adil Jun 22, 2024 12:16pm
Budget electric cars might be an instant hit in Pakistan
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Owais Adil Jun 22, 2024 12:17pm
Assembling will lead to creation of allied small industry and will reduce the fuel import bill
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Owais Adil Jun 22, 2024 12:21pm
@Ali , China has cheaper options as well and still they are of fairly good quality as compared to their gasoline counterparts in Pakistan
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Mohsin Alim Qazi Jun 22, 2024 12:32pm
Attracting BYD to Pakistan is great achievement. Well done Hubco !!!
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mushtaQ Ali Kamboh Jun 22, 2024 08:50pm
I hope It's exciting project for the nation of Pakistan
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Syed mohabat ali Jun 23, 2024 05:50am
This is good car, subject to charging facility and running km per charge with introductoey price,
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Chaudhry Shahid Nazir Jun 23, 2024 07:42am
It’s cheap sell out of national interest. Why EVs can’t be made with Pakistani brand names to reduce import bill and further exported.
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Percy Jun 23, 2024 11:18am
Before Pakistani Companies signing new ventures for production of EV we need to build the infrastructure rapidly. Also whenever the Government changes our policies change.
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Arsalan Jun 24, 2024 07:05am
am gravely concerned with hubco's involvement. they were never sincere what they are already doing as they have already looted us n still looting. now they want to ruin ev's too at its initial stage!!
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Saif Ullah Khan Niazi Niazi Jun 25, 2024 08:06am
Pakistan needs EVs awareness campaign, and related infrastructure. Byd may take lead in coordination with Hubco in establishing network of EV charging stations and workshops.
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Humaid ur Rehman Jun 26, 2024 09:17am
Great Initiative and best of luck
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Abdul Ghaffar Jul 06, 2024 06:05am
It is very good project for Pakistan.
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