BYD says half of total vehicles sold in Pakistan will be electric by 2030

Up to half of all vehicles sold in Pakistan by 2030 could be electric, according to BYD Pakistan, a joint venture between China’s BYD and Pakistan’s Mega Motors. This target aligns with global goals for reducing emissions.

BYD, a Chinese electric vehicle (EV) giant backed by Warren Buffett, recently announced its entry into Pakistan, which has a population of around 250 million.

In a partnership with Mega Motors, the company plans to build an assembly plant by early 2026. However, they will begin selling cars later this year, following the launch of three models in August.

According to Reuters, Kamran Kamal, BYD Pakistan’s spokesperson, mentioned in an interview that the company expects up to 50 per cent of all vehicles in the country to be powered by new energy sources, such as electric or hybrid technology, by 2030.

Kamal, who also leads Hub Power, the parent company of Mega Motors, acknowledged this is a bold target given Pakistan’s auto market, which has traditionally been dominated by Japanese brands like Toyota, Honda, and Suzuki. In fact, vehicle sales recently hit a multi-year low as of June 2024.

While some new players, such as South Korea’s KIA and China’s Changan and MG, have entered the market offering hybrid vehicles, BYD is the first major company focused entirely on new energy vehicles in Pakistan. Hybrid vehicle sales in the country have already doubled in the past year.

However, experts like Muhammad Abrar Polani, an auto analyst at Arif Habib Limited, believe that while a 30 per cent adoption rate for electric vehicles is achievable by 2030, reaching 50 per cent may be more difficult due to challenges with charging infrastructure.

Kamal confirmed that the Pakistani government plans to support the development of this infrastructure by offering incentives, and standards for EV charging stations have already been drafted. The government is also considering providing these stations with cheaper electricity.

BYD Pakistan is working with two oil marketing companies to build a network of charging stations, aiming to set up 20 to 30 stations during the initial rollout of its vehicles. Initially, the company will sell fully assembled cars, which are subject to high import taxes, but Kamal stressed that their primary goal is to start assembling vehicles locally as soon as possible.

The size of the new assembly plant is still being decided, with more details about the investment and collaboration with power company HUBCO expected later.