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BYD to assemble electric cars in Pakistan by 2026: What will the Chinese plant mean for Pakistan’s EV industry?

BYD will assemble its first car in Pakistan by mid-2026, according to Reuters, to meet the rising demand for electric and hybrid cars, as they were previously exporting. What does the future of Pakistan’s EV market look like? Read more below.

BYD plant to start assembling cars by July or August 2026
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(Photograph: Reuters)

BYD plant to start assembling cars by July or August 2026

BYD, the world’s top electric vehicle (EV) maker, will make its first Pakistan-assembled car by July or August 2026. The plant, under construction since April 2025 near Karachi, is a joint venture with Mega Motor Company, which is a subsidiary of Hub Power. Demand for EVs and plug-in hybrids is rising fast in the country, as reported by Reuters.

Production capacity and local plans
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(Photograph: Reuters)

Production capacity and local plans

The new plant will initially operate on double shift, and can build up to 25,000 vehicles per year. For now, it will start by assembling imported parts with some local non-electric components, first for the domestic market, but with an option to export to right-hand drive regional markets depending on costs and demand.

EVs and hybrids for pakistan’s unique market
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(Photograph: Reuters)

EVs and hybrids for pakistan’s unique market

As Pakistan has few charging stations, plug-in hybrid electric vehicles (PHEVs) are expected to be the most popular type, combining a battery and a traditional engine. Byd’s shark 6 plug-in hybrid pickup will launch in July 2025. Rivals like MG and Haval are also entering the hybrid SUV segment, which shows a shift in local car buying.

Capturing the market
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(Photograph: Reuters)

Capturing the market

BYD imported its first EVs to Pakistan in March 2025. Even in the early days, they sold “a few hundred” cars around 30 per cent more than their own targets, which they initially set. As company data suggests, the EV and PHEV car market in Pakistan may grow 3-4 times by 2025, reaching 3,000-4,000 units from about 1,000 in 2024. However, BYD aims for a 30-35 per cent slice of this market.

Price and incentives
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(Photograph: Reuters)

Price and incentives

Pakistan’s government has decided to cut electricity prices for car chargers by 45 per cent in January 2025 to help people buy electric and hybrid cars. These incentives support Chinese BYD’s and other makers’ plans for wider electric and hybrid adoption; however, critics argue it will be a failure as the government can’t provide basic facilities to its people, so why are they taking the initiative in EVs space?

Financial growth and exports
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(Photograph: Reuters)

Financial growth and exports

In March 2025, BYD Pakistan reported about 444 million Pakistani rupees, which is roughly $1.56 million, in profit according to Hub Power’s filings. The plant is designed with future exports in mind for right-hand drive markets, however the initial focus of the company will remain on meeting Pakistan’s fast-growing local EV car demand.