NEV manufacturing plant: Mega Motor inks financing accord with BII for construction

KARACHI: The Mega Motor Company (Private) Limited (MMC), the official partner of Chinese electric vehicle giant BYD in Pakistan, has signed a financing agreement with British International Investment (BII), to fund the construction of Pakistan’s first purpose-built, large-scale new energy vehicle (NEV) manufacturing plant.

According to the details, under the agreement, BII, the United Kingdom’s development finance institution and impact investor, will provide long-term foreign currency financing covering 25 percent of the total project cost.

The state-of-the-art plant, equipped with cutting-edge automation and world-class manufacturing systems benchmarked against leading global automotive standards, is scheduled to begin operations in the second half of 2026.

The deal marks one of the earliest green energy-linked funding arrangements for Pakistan’s automotive manufacturing sector — a significant milestone for a country grappling with some of the world’s worst air quality.

This plant is expected to generate more than 1,100 jobs, advance sustainable industrialisation, and help avoid an estimated 165,000 tonnes of CO2 emissions by 2034. MMC Chief Executive Officer Aly Khan described the investment as a turning point for Pakistan’s automotive landscape. “Pakistan stands at a critical inflection point, where clean mobility is integral to achieving the country’s long-term economic and energy objectives,” he said. “This greenfield investment will not only accelerate NEV adoption, but also help shape Pakistan’s automotive future by building a resilient value chain that creates jobs, enables knowledge and technology transfer, and strengthens long-term industrial capability.”

Stephen Priestley, Managing Director and Head of Financial Services Group and Industries, Technology and Services at BII, said the investment reflects the institution’s broader priorities. “This investment aligns with our focus on supporting sustainable industrial transformation and climate action,” he said, adding that it would accelerate Pakistan’s energy transition by enabling job creation in the growing green sector and bolstering the country’s emerging clean transport ecosystem.

Alongside the financing arrangement, MMC — with support from BII — is implementing a comprehensive environmental, social, and governance (ESG) framework.

This includes strengthened labour standards, occupational health and safety management, stakeholder engagement protocols, and responsible supply-chain practices.

Copyright Business Recorder, 2026