Four Major Chinese EV Automakers Building Assembly Plants in Pakistan

Pakistani auto industry, currently dominated by Japanese automakers building ICE (Internal Combustion Engine) vehicles, is expected to be transformed with the arrival of Chinese new energy vehicles (NEV) manufacturers. Beyond Your Dreams (BYD), Chang'an, Great Wall Motors (GWM) and Shanghai Automotive Industry Corporation (SAIC) are planning to build plants in Pakistan.  Coming on the heels of the ongoing solar revolution in the country, these new EV entrants are helping accelerate Pakistan's transition to clean energy.  These auto plants also create an opportunity for Pakistan to become a significant exporter of electric vehicles to developing nations. 

BYD EV. Source: CNBC


BYD, operating in Pakistan through a partnership with Mega Motor Company (a subsidiary of Hubco), has started building a $150 million assembly plant in Gharo, Sindh. Its initial target is to produce 25,000 units annually, with the capacity to scale up to 50,000 units a year. It is expected to launch in the second half of 2026, with equipment installation and final commissioning currently underway. It plans to produce four models, ranging from entry-level plug-in hybrid Atto-2 to higher-end all-electric Seal and Sea-lion 7 Sedan and SUV. 


Chinese EV Factories Overseas. Source: The Economist
Chang'an Motors has a joint venture with Master Motors in Pakistan. It is operating a state-of-the-art plant in Karachi with capacity to produce 30,000 units. The plant is already fully operational for fuel-powered vehicles, but Changan is steadily adapting its assembly infrastructure to introduce modular Lumin EV and hybrid lines over the 2026–2027 fiscal periods.

Great Wall Motors is partnering with local manufacturing giant Sazgar Engineering. It is expanding its capacity to produce up to 54,000 SUVs and New Energy Vehicles (NEVs) annually. 

SAIC's factory located in Lahore is engineered for an operational capacity of roughly 25,000 to 30,000 vehicles per year. SAIC’s MG brand was an early mover, transitioning from completely built imports to local CKD assembly lines. They are actively producing and expanding locally assembled variants, particularly focusing on their plugin-in hybrid crossover lineup to gain market share.

Chinese automakers currently account for 20% of all auto sales in Pakistan while Japanese automakers Suzuki, Toyota, and Honda hold most of the remaining 80% market share. Kamran Kamal, a BYD Pakistan executive, has told Pakistani 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.

The ongoing solar revolution and new energy vehicles (NEV) boom in Pakistan will help reduce energy imports, improve energy security and mitigate the impact of climate change. Pakistan government policies should fully support this consumer-led movement toward the country's energy independence. 

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Comment by Riaz Haq 6 hours ago

Pakistan is shifting from traditional lead-acid battery manufacturing toward , driven by a massive surge in solar energy adoption and electric vehicle (EV) demand. [1]
Current State and New Production Facilities
  • First Lithium-Ion Plant: Karachi-based engineering firm EV Technologies is launching Pakistan's first local Li-ion battery manufacturing plant in the Korangi Industrial Area. [1, 2]
  • Initial Output: The facility features an initial production capacity of 4 megawatts (MW), designed to supply roughly 2,000 e-bike and e-scooter batteries per month. [1]
  • Traditional & Dry Battery Sector: Established players like Exide Pakistan Limited, Atlas Battery, and Treet Corporation (maker of Daewoo batteries) dominate conventional lead-acid and backup markets, while Treet and others are expanding into Li-ion integration. [1, 2, 3, 4]
Policy Framework and Localization Goals
  • Battery Manufacturing Policy (2026–31): The government advanced a comprehensive roadmap via the Engineering Development Board (EDB) to incentivize local production over importing completely built-up (CBU) battery packs. [1, 2]
  • Tax and Tariff Incentives: The framework proposes reduced sales taxes for local producers, accelerated depreciation for capital investments, and protective duties on finished imported batteries. Raw materials for Li-ion assembly currently face zero import tax, compared to a 12% tax on fully assembled units. [1, 2]
  • Value Addition Targets: The policy aims for an ambitious localization path targeting 70% domestic value addition initially, scaling up to 80% over time, focusing heavily on safer and cost-effective Lithium Iron Phosphate (LFP) chemistry. [1, 2, 3]
International Partnerships
  • Chinese Investment: Pakistan is actively partnering with Chinese companies to bridge technological gaps in cell manufacturing and energy storage systems (BESS). [1]
  • Key Agreements: China's Dongjin Group announced a $15 million dry battery plant investment in Faisalabad, and the Saigol Group signed a strategic memorandum of understanding (MoU) with China's Hebei Juhang Energy Technology Group for advanced Li-ion and EV infrastructure collaboration. Discussions have also involved top global EV battery makers like CATL. [1, 2, 3]

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