Chinese EV major BYD to roll out first car assembled in Pakistan by 2026
The world's largest EV maker aims to capture growing demand for electric and plug-in hybrid vehicles in Pakistan.
The automaker has been expanding rapidly outside its home market, where it is in a strong price war.
The Pakistan assembly plant addresses rising demand from emerging markets and allows the company to take advantage of incentives offered by the Pakistani government.
The plant has been under construction since April near Karachi in a partnership between BYD and Mega Motor Company, a subsidiary of Pakistani utility Hub Power, Danish Khaliq, vice president of sales and strategy at BYD Pakistan, told Reuters.
Initially, the facility would have the capacity to produce 25,000 units a year on a double shift. It will start by assembling imported parts, with some local production of non-electric components, said Khaliq.
He added it would initially produce vehicles for the domestic market, with potential to export to right-hand drive countries in the region depending on freight costs and business economics.
"We do not foresee excess capacity in our system as demand in Pakistan will catch up," he also said.
BYD is hoping that the market size of EVs and plug-in hybrid cars in Pakistan would grow three to four times in 2025 from around 1,000 total units in 2024.
The automaker is targeting a 30-35 per cent share of the segment.
The carmaker will launch its Shark 6 plug-in hybrid pickup truck in Pakistan on Friday.
China's MG already sells a PHEV SUV, while rival Haval is set to join the segment soon.
China's BYD will delay mass production at its new electric vehicle factory in Hungary until 2026 and will run the plant at below capacity for at least the first two years, Reuters reported, citing sources.
At the same time, China's No. 1 automaker will start making cars earlier than expected at a new plant in Turkey where labour costs are lower, and will vastly exceed its announced production plans, one of the sources said.
Shifting production away from Hungary in favour of Turkey would be a setback for the European Union, which has been hoping that its tariffs on EVs made in China would bring in Chinese investments and well-paid manufacturing jobs.
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