BYD to Begin EV Assembly in Pakistan by 2026

China’s leading electric vehicle maker BYD plans to locally assemble cars in Pakistan by mid-2026 to tap into the country’s growing EV market. The company aims to meet rising demand for electric and plug-in hybrid vehicles, beginning with a new production facility near Karachi. The move marks a major step for Pakistan’s auto sector as it embraces clean energy transport.

Plant to Begin Production by Mid-2026

The company’s first Pakistan-assembled car is expected to roll off the production line between July and August 2026. This development comes through a partnership with Mega Motor Company, a subsidiary of the Pakistani energy firm Hub Power (HUBCO). Construction of the assembly plant began in April near Karachi, laying the foundation for BYD’s local manufacturing operations.

Danish Khaliq, Vice President of Sales and Strategy at BYD Pakistan, said the facility will initially assemble vehicles using imported parts while also producing some non-electric components locally.

Annual Capacity Set at 25,000 Units

According to Khaliq, the plant will have an annual production capacity of 25,000 units based on a double-shift operation. While he didn’t specify when mass production would start or when full capacity would be reached, he expressed confidence in the demand potential within Pakistan.

“We do not foresee excess capacity in our system as demand in Pakistan will catch up,” Khaliq said.

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Initial Focus on Domestic Market

BYD’s assembly operations will initially serve the domestic market. However, there is potential to export to nearby right-hand drive countries, depending on logistics and economic viability. If freight costs remain favorable, Pakistan could become a regional export hub for BYD.

This strategy aligns with the company’s broader international expansion as it seeks to compete aggressively in emerging markets outside China, especially amid intense price wars in its home territory.

Imported EV Sales Already Surging

BYD began delivering imported EVs to Pakistan in March 2025. Though the company didn’t release exact sales figures, Khaliq stated that initial sales had already exceeded their internal targets by 30%. The early success has given the brand confidence in the market’s future growth.

Khaliq estimates that the combined market size of electric and plug-in hybrid vehicles in Pakistan will expand by three to four times in 2025. From around 1,000 units sold in 2024, the segment is projected to surge as infrastructure and awareness improve.

BYD aims to capture a 30-35% share of this rapidly expanding segment, putting it in direct competition with brands like MG and Haval, which are also investing in plug-in hybrid models for Pakistan.

Plug-in Hybrids Lead the Way

In the absence of widespread EV charging infrastructure, plug-in hybrids present a more practical solution for Pakistani consumers. These vehicles can switch between battery power and fuel, making them ideal for areas with limited charging facilities.

Recognizing this, BYD is launching the Shark 6, a plug-in hybrid pickup truck, in Pakistan on Friday. The new model will be the company’s third offering in the country and is expected to further boost BYD’s visibility and sales.

Other manufacturers, including China’s MG and Haval, are also moving into the plug-in hybrid space, indicating growing competition and interest in this vehicle class.

Government Incentives Driving Growth

To support EV adoption, the Pakistani government reduced power tariffs for electric vehicle chargers by 45% in January. The goal is to encourage the establishment of private charging stations and make EVs more appealing to consumers.

These policy shifts, combined with increasing investment from global automakers, reflect Pakistan’s evolving commitment to green mobility.

Strong Financial Start

According to a HUBCO stock exchange filing, BYD Pakistan reported a profit of 444 million rupees ($1.56 million) in the March 2025 quarter. This strong financial performance indicates promising early returns and market confidence in BYD’s local operations.

As BYD ramps up its investment in Pakistan, the country’s EV ecosystem is set for significant transformation. With rising consumer interest, government incentives, and fresh competition, Pakistan’s automotive future looks greener than ever.