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KARACHI: Pakistan’s electric vehicle sector is entering a new phase, shifting from market entry and early adoption towards industrial localisation, as BYD Pakistan-MMC outlines a structured roadmap for local assembly, supplier development and eventual integration into global value chains.
At the centre of this shift is BYD’s upcoming manufacturing facility in Gharo, developed in partnership with Mega Motor Company (MMC), a subsidiary of Hubco. The $150 million plant is designed as a purpose-built New Energy Vehicle (NEV) facility with a planned annual capacity of 25,000 units, and is expected to become operational in the third or fourth quarter of 2026. The project is also projected to generate more than 1,100 jobs while laying the foundation for broader industrial development in the automotive sector.
“Pakistan’s transition to electric mobility should not be viewed as replacing one form of import dependence with another,” said Danish Khaliq, vice president of BYD Pakistan-MMC during a conversation with auto sector reporters. “The long-term opportunity lies in building a localised manufacturing and supplier ecosystem around NEVs, and that is very much part of our vision for Pakistan.”
The company’s localisation strategy will begin with completely knocked-down (CKD) operations focused on assembling vehicles domestically, while gradually increasing the share of locally sourced components. Initial efforts will prioritise bulky and high-value parts that are easier to localise, before expanding towards more complex systems as supplier capability improves.
“We are structuring our assembly plans with progressive localisation in mind,” Danish explained. “As we move towards CKD operations, the focus will be on building local capacity step by step, and over time expanding into deeper parts of the value chain as the ecosystem matures.”
Beyond assembly, BYD-MMC also sees Pakistan as a potential participant in its broader global supply chain, provided that local manufacturers can meet international benchmarks for quality, cost efficiency and scale.
However, industry stakeholders have emphasised that the pace of this transition will depend heavily on policy continuity, with the company calling for a long-term framework to ensure investment certainty and industrial planning.
“Policy stability and long-term incentives are critical for markets like Pakistan where automotive investment cycles are long,” Danish noted. “A consistent framework of at least 10 years, with a clear distinction between CBU and CKD structures, is essential to encourage real localisation rather than short-term trading.”
Danish further cautioned that an unbalanced import environment could slow domestic ecosystem development, particularly if used vehicle imports expand without corresponding support for local manufacturing.
Despite these challenges, BYD maintains a positive long-term outlook, positioning Pakistan not merely as a sales market but as a potential manufacturing and export hub within its global NEV network.
Highlighting infrastructure progress, he shared that Pakistan’s first and largest charging corridor under the Mega Motor Company and Hubco Green partnership is set to go live soon, connecting Karachi to Peshawar with charging stations every 200-250 kilometres. The company is targeting approximately 40-50 charging stations across Pakistan by the end of 2026.
