Pakistan

Electric vehicles will account for up to half of auto sales by 2030, BYD Pakistan says

  • BYD has plans to open an assembly plant in early 2026, but will introduce vehicles for sale later this year, after launching three models in August
Published September 6, 2024

KARACHI: Up to 50% of all vehicles bought in Pakistan by 2030 will be electrified in some form in line with global targets, BYD Pakistan, a partnership between China’s BYD and Pakistani car group Mega Motors, said.

Warren Buffett-backed Chinese electric vehicle giant BYD last month announced its entry into Pakistan, making the South Asian nation of nearly 250 million people one of its newest markets.

The partnership has announced plans to open an assembly plant in early 2026, but will introduce vehicles for sale later this year, after launching three models in August.

Aurangzeb wants BYD to export from Pakistan as Chinese automotive giant launches in country

“I see conversion to new energy vehicles NEV at up to 50%,” Kamran Kamal, BYD’s spokesperson in Pakistan, told Reuters in an interview at his office on Thursday.

Kamal is also the CEO of Hub Power, which owns Mega Motors.

The target is an ambitious one for Pakistan’s auto sector, which has been largely dominated by Japanese automakers Toyota, Honda and Suzuki, with vehicle sales hitting a multi-year low in the fiscal year that ended June 30, 2024.

Recently South Korea’s KIA and Hyundai have begun challenging for market share along with Chinese companies Changan and MG, all of whom offer hybrid vehicles.

Hubco subsidiary ventures into EVs with China’s BYD

BYD Pakistan is the first major new energy vehicle entrant in the Pakistani market. Hybrid electric vehicle sales in Pakistan have more than doubled in the past year.

While reaching 30% NEV adoption by 2030 is feasible, achieving 50% may be more challenging due to infrastructure hurdles, said Muhammad Abrar Polani, auto sector analyst at Arif Habib Limited.

Kamal said the challenge of charging infrastructure would be addressed by government plans to incentivise its construction.

Local media reported in August that standards for EV charging stations had been drafted by the power ministry, with the government considering offering them affordable electricity.

Kamal said BYD Pakistan is collaborating with two oil marketing companies to establish a charging infrastructure network and aims to establish 20 to 30 charging stations within the initial phases concurrent with the rollout of its cars.

BYD Pakistan will initially sell fully assembled vehicles, which are subject to higher import charges than vehicles shipped in parts and assembled locally.

BYD’s global expansion push runs into stiff Japan test

“Our main focus is to have locally assembled cars on the roads as soon as possible,” said Kamal, citing difficulties in importing and selling fully assembled units under Pakistan’s current duty structure.

Kamran said BYD Pakistan is deciding on the size of a new plant, but details about the investment and partnership with power utility HUBCO will be disclosed later.

Comments

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Abdullah Sep 06, 2024 03:38pm
We need to move and wont be possibke in BYD as there wont be any electricity.
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test Sep 06, 2024 05:32pm
I don't know whether electric vehicles in Pakistan will account for 50% or not. What will be our contribution to manufacturing e.g batteries, chargers, motors, auto components, electric components etc
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test1 Sep 06, 2024 05:34pm
What will be the contribution of Pakistan in global supply chains of electric vehicles ? Will we start local manufacturing of batteries, motors, chargers, electrical components, mechanical components?
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KhanRA Sep 06, 2024 08:10pm
Given the boom in solar, I can see such cars being charged at home to save on gas.
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Maqbool Sep 06, 2024 11:38pm
First one need’s reliable bijli and at a sensible price , before high priced electric cars. What’s the cost of the battery replacement for an electric car
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ali Sep 07, 2024 02:32am
almost every home in major cities have solar which can be utilized for charging
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