(Bloomberg) -- Chinese electric carmaker BYD Co. plans to build a factory in Karachi with a local partner to capture a share of Pakistan’s growing EV market, according to a person familiar with the matter.
The company will reveal three models it plans to sell in Pakistan, including an SUV and a sedan, at its brand launch on Saturday, said the person, who asked not to be identified discussing private information. BYD aims to introduce additional models, including both battery-electric and plug-in hybrid vehicles, to the market at a later date.
A BYD spokesperson confirmed it planned to enter the market with battery-electric and plug-in hybrid vehicles but declined to comment when asked about plans to invest in a factory in Pakistan and other details.
Pakistan is the world’s fifth-largest nation by population that has seen Chinese companies including Great Wall Motor Co., SAIC Motor Corp. and Chongqing Changan Automobile Co. enter the market in recent years and compete with Japanese companies including Toyota Motor Corp. and Honda Motor Corp.’s local units. EV sales are still marginal in Pakistan relative to total auto sales.
BYD has teamed up with one of Pakistan’s largest business groups, Mega Conglomerate Pvt., in a partnership deal that goes beyond the usual dealership model they have in most markets, the person said. The Chinese company will be working in a joint venture with Mega Motors, a subsidiary of Hub Power Co., Pakistan’s largest independent electricity producer.
The factory will be set up near Karachi’s Port Qasim area that houses assembly plants for other automobile companies including Toyota, Suzuki Motor Corp. and Kia Corp.’s local units. It will be completed in the first half of 2026 with exact details of the plant still under discussion, according to the person.
BYD will set up showrooms in Karachi, Lahore and Islamabad to start selling in the fourth quarter this year, said the person.
China’s best-selling car brand, which sold three million units in 2023, is making a big push especially in Southeast Asia, Europe and Latin America, to capitalize on its status as a top EV and hybrid maker.
The Shenzhen-based firm, which has a presence in more than 80 countries, has signed deals with Hungary, Turkey and Brazil to start EV production. Its first factory outside of China opened in Thailand last month.
©2024 Bloomberg L.P.
