BYD adds to China's expanding automotive footprint in Pakistan

https://kr-asia.com/byd-adds-to-chinas-expanding-automotive-footpri...

BYD is emerging as a key player in Pakistan’s automotive market as the Chinese electric vehicle manufacturer prepares to begin local assembly in the country, and to reshape a sector long controlled by Japanese carmakers like Suzuki, Toyota, and Honda.

“The plant is expected to become operational in the third to fourth quarter of 2026, with the first locally assembled BYD vehicles anticipated to reach the market later in the year,” Danish Khaliq, vice president in charge of sales and strategy at Mega Motor Company, BYD’s official partner in Pakistan, told Nikkei Asia.

BYD Pakistan, the name Mega Motor Company uses for marketing and branding purposes, began selling imported EVs in Pakistan in 2024. The local partner is currently preparing BYD’s first assembly plant near Karachi with an annual production capacity of 25,000 vehicles.

BYD surpassed Tesla of the US as the world’s top EV supplier for the first time in 2025.

BYD Pakistan declined to share its sales in the South Asian country with Nikkei Asia, but it said that the assembly plant construction is expected to carry an estimated cost of USD 150 million. Local media have reported that BYD sold around 2,000 units in 2025.

BYD is not the first Chinese marque in Pakistan. FAW Motors entered the market in 2017, followed by state-owned Changan Automobile, which began local assembly in 2018. State-owned BAIC Motor followed in 2019. BYD will, however, be the first local EV assembler in Pakistan.

“Rising smog levels in major cities and the transport sector’s contribution to air pollution have made clean mobility an urgent consideration rather than a distant goal,” Khaliq said. “At the same time, the growing fuel import bill has strengthened the case for alternative energy solutions.”

Chinese automakers tend to focus on higher-end EVs and hybrid vehicles rather than conventional gasoline cars, where competition from Japanese manufacturers is relatively limited. For example, Great Wall Motor (GWM), the top-selling Chinese automaker in Pakistan, began local assembly in 2021 and reportedly sold about 10,000 units, including Haval-branded hybrid SUV models, in 2025.

Shehryar Qadir, senior vice chairman of the Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM), told Nikkei that Chinese automakers currently account for about 20% of Pakistan’s passenger vehicle market.

Kamran Kamal, a BYD Pakistan executive, once told local media that the new energy vehicles Chinese automakers are betting on will make up as much as 50% of passenger vehicles sold in Pakistan by 2030.

Experts said that the Chinese automaker push into the Pakistan market is primarily driven by a favorable government policy that will remain in place until June.

BYD adds to China's expanding automotive footprint in Pakistan

https://kr-asia.com/byd-adds-to-chinas-expanding-automotive-footpri...


Pakistan’s automotive development and export policy for 2021–2026 offers reduced duties and tax incentives for vehicle imports and the establishment of assembly plants, aiming to attract new entrants, increase competition, and promote gradual localization in the country’s automobile sector.

This policy covers newcomers to the entire automobile industry, and does not favor only Chinese brands or EVs.

“Under this policy, Chinese companies are importing vehicles and assembling them locally through completely built units or semi-assembled routes, without major investment in localization or technology transfer,” Mashood Khan, an automotive sector expert based in Karachi, told Nikkei.

“Their current market presence is therefore shaped more by policy incentives than by long-term industrial commitment,” he said.

Qadir, from PAAPAM, agreed: “New entrants under [Pakistan’s new car] policies had 20% concession on parts imports, which is huge in the auto parts manufacturing industries, where profit margins are around the 5% mark,” he said. “This resulted in lower costs and very high margins for the [Chinese].”

GWM’s Haval H6 is priced at around USD 18,000–22,000 in Pakistan, while Toyota’s RAV4 sells at USD 30,000–35,000. BYD’s Atto 3 is available at dealers for USD 20,000–23,000, while its Seal U model is priced around USD 25,000–28,000.

Toyota Indus Motor Company, Toyota’s local unit, did not respond to Nikkei‘s query by the time of publication.

“The reason why the Japanese manufacturers could not take advantage of this was that policy advantage was only offered to greenfield investment, so only new entrants could avail this advantage,” Qadir told Nikkei, adding that new entrants, such as Hyundai Motor and Kia, have also taken advantage of the auto policy.

He foresees the policy likely being extended beyond June this year. “Auto policy 2026–31’s zero draft was shared by Engineering Development Board [an apex government body under the Ministry of Industries and Production] in November 2025. Policy formulation is currently underway,” he told Nikkei.

Habib Ullah Khan, an expert on emerging economies based in Karachi, pointed out that Chinese firms also benefit from a decade of Beijing’s EV subsidies, and the world’s largest domestic testing ground.

“[The Chinese] have perfected aggressive pricing through scale and are now capable of launching EVs near conventional vehicle price points,” he told Nikkei.

Qadir is cognizant of the flip side of the typical Chinese automaker strategy, noting that the China market is saturated with over 100 EV brands, with less than 7% in profit.

“Due to this intense competition in China, companies are forced to look outwards at overseas markets, often at lower price points, to push volumes,” he said.

The growing presence of Chinese automakers threatens Japanese companies in Pakistan, which have historically dominated the auto market.

“Pakistan is a fascinating place to study the Chinese challenge to Japanese auto makers,” said Habib Ullah Khan. “What is happening in Pakistan will be replicated all over the world where Japanese car makers dominate.”

Industry insiders said that Japanese manufacturers operating in Pakistan already have high levels of localization and a broader product mix. They continue to dominate small cars and sedans and retain market leadership despite rising competition.

“While Chinese brands are gaining acceptance in SUVs due to global shifts and feature-rich offerings, their long-term success will depend on how quickly they can match Japanese localization levels,” Mashood Khan, the auto expert, said.

Faseeh Mangi
@FaseehMangi
Signs are emerging that the latest conflict is hastening Pakistan’s transition to EVs

VLEKTRA Electric Motorcycles expects battery-powered two-wheelers to account for 10% to 15% of the market in 2026, up from less than 1% two years ago.

https://x.com/FaseehMangi/status/2037545212139188341?s=20

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Iran War Is Pushing Consumers to Break Up With Fossil Fuels
EVs, solar panels, induction stoves and heat pumps, now cheaper than ever, are becoming more attractive as the conflict upends oil and gas markets.

By Todd Woody

https://www.bloomberg.com/news/features/2026-03-26/war-oil-price-sh...

Just weeks ago, the US electric car market looked moribund. Amid plummeting EV sales, dealers were offering discounts as Detroit automakers scrapped electric lineups to make more gas-guzzling SUVs.

Then oil prices surged after the US and Israel attacked Iran.

Now, a used electric car showroom in San Francisco suggests the tide is turning again. As gasoline prices climb — hitting $6.81 a gallon at a nearby station on Wednesday — a flurry of drivers are making appointments to check out Ever’s lightly used EVs, many priced under $30,000.

“Gas prices are coming up in almost every customer conversation,” said Maximilian Quertermous, Ever’s co-founder and chief operating officer. “The momentum of the last few weeks is among the strongest we’ve seen.”

Ever is just one dealership, but signs of a shift are playing out across the world. In Southeast Asia, buyers are flocking to Chinese EV giant BYD Co.’s stores, while electric rickshaws are selling out in Pakistan. A shortage of cooking oil in India is driving a run on electric stoves. From Germany to Nigeria, interest in rooftop solar is surging. And in the UK, some homeowners are taking the plunge on expensive heat pumps.

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In neighboring Pakistan, solar took off after the Ukraine war. Now, signs are emerging that the latest conflict is hastening the nation’s transition to EVs after the price of gasoline jumped more than 20%.

Syed Raza Mohsin, founder of VLEKTRA Electric Motorcycles, said he expects battery-powered two-wheelers to account for 10% to 15% of the market in 2026, up from less than 1% two years ago. “Solar is a very good example of how private citizens themselves found a solution for high energy prices,” he said. “We are seeing similar trends in motorcycles.”

Electric rickshaw maker Tezmo Motors has already sold out its March inventory, according to founder Moez Naseer, and is expecting a “very huge surge of orders.” Naseer said two fleet operators have placed orders since the Iran war started. “We are so petrol reliant, so people are finally figuring it out that we cannot rely on this anymore,” he said.

In the Philippines, the government is stepping in to fill the gap. This week, a state-owned pension fund started offering loans of up to 500,000 pesos ($8,300) for home solar panels after President Ferdinand Marcos Jr. declared a national energy emergency due to the war.