[RahulNagaraj]

According to a media report, Chinese carmaker BYD is planning to capture a sizable share of Pakistan's EV market.

Reports suggest BYD plans to build a new factory in Karachi, Pakistan, with a local partner. The company will initially roll out 3 models to sell in Pakistan, which include a sedan and an SUV - although the exact models are yet to be announced. A person familiar with the matter also stated that additional models, including battery-electric and plug-in hybrid vehicles, could be introduced at a later stage.



A BYD spokesperson has also confirmed its plans to enter Pakistan with plug-in hybrids and BEVs. However, they did stop short of mentioning its factory investment plans and other details.

Reports state that BYD has teamed up with Mega Conglomerate Pvt. - Pakistan's largest business group. The partnership deal is said to go well beyond the usual dealership model seen in other markets. BYD will also form a JV with Mega Motors, a subsidiary of Hub Powers Co. - Pakistan's largest independent electricity producer.

The new factory will be set up near Karachi's Port Qasim area, where assembly plants of other manufacturers like Toyota, Suzuki and Kia are also located. The upcoming BYD factory is expected to be completed sometime in the first half of 2026.

Reports state that the company could start selling in the fourth quarter of this year, with BYD showrooms coming up in Karachi, Lahore and Islamabad.

With Great Wall Motors, SAIC Motor and Chongqing Changan Automobiles already having entered the market in recent years, BYD won't be the first Chinese carmaker in Pakistan.

Source: Bloomberg

Link to Team-BHP news

[frewper]

Thats quite interesting.

Because Pakistan obviously doesnt have a large market for cars. Being near the port means it wants to export. Now the question is, why wouldnt they just export from China itself? Pakistan doesnt even have component manufacturing capabilities. Why would they want to incur the additional cost to setup in a different country altogether which is not too far away?

Could it mean that Pakistan has given a too good of a deal to China to setup BYD there? 100% FDI ? I wont be surprised if the entire plant is run only by chinese workers and very few locals. Just like China has done in other countries when doing infrastructure projects.

India obviously doesnt like Chinese players in India. And has made it really difficult for them in the recent times. Seems like China is now playing hardball with India.

[SmartCat]

Originally Posted by frewper

Now the question is, why wouldnt they just export from China itself? Pakistan doesnt even have component manufacturing capabilities. Why would they want to incur the additional cost to setup in a different country altogether which is not too far away?

All global car & bike brands have local tie-up in Pakistan. Perhaps that's part of their automotive policy. As an extension, it is very likely that import duties will be lower if they setup an assembly factory in Pakistan.

However, most automotive brands have basic SKD/CKD assembly units. When Pakistan had a foreign exchange crisis last year, both two wheeler and four wheeler production stopped completely.

[v1p3r]

Originally Posted by frewper

India obviously doesnt like Chinese players in India. And has made it really difficult for them in the recent times. Seems like China is now playing hardball with India.

Hardball how? CN wants access to IN's domestic market, and IN makes that hard. PK manufacturing is hardly going to help in any way. PK's domestic market definitely won't take up any significant portion of manufacturing output.

Originally Posted by SmartCat

As an extension, it is very likely that import duties will be lower if they setup an assembly factory in Pakistan.

I really doubt the PK market is big enough to warrant a greenfield investment in manufacturing. This whole thing puzzles me.

[SmartCat]

Originally Posted by v1p3r

I really doubt the PK market is big enough to warrant a greenfield investment in manufacturing. This whole thing puzzles me.

wow, market size is just 150k units per year or 12,000 units per month.



https://www.statista.com/outlook/mmo...tan#unit-sales

[PratikPatel]

Originally Posted by SmartCat

wow, market size is just 150k units per year or 12,000 units per month.

https://www.statista.com/outlook/mmo...tan#unit-sales

It’s actually less than 10,000 units per month for last couple of quarters. Not counting grey market and direct imports. Wonder how BYD will make a business case for a manufacturing plant with such miniscule market.

[mtnrajdeep]

No doubt that this will be a measure for beating EU and USA import restrictions on Chinese cars. Just by doing SKD assembly, they can claim that the cars are not manufactured in China and evade import restrictions.

[Sach_511]

Point to note: There is a huge power shortage in Pakistan, with power cuts lasting 10-12 hours being very frequent. Additionally, electricity bills already account for 50-60% of total household income. It is unclear who the target consumers for BYD in Pakistan are?

[JunkyardHunter]

The car market in Pakistan is tiny, as mentioned above. And Pakistan might be one of the worst places in the world for an EV company. With a grand total of (drumroll please) 8 chargers across the country, and a market that has been in steady decline since COVID, it baffles me why BYD even considers Pakistan as a worthy investment.

[dsuman]

I believe BYD is trying to show India that it is missing out by not allowing Chinese companies freely into India. In Pakistan, BYD has a huge work cutout > Develop a local ecosystem of Ancillary units > Create skilled workforce from grassroot levels Or simply run with all Chinese staff. Since Pakistan currency is in a battered state BYD may be able to build cars for very cheap. All in all this seems headed for failure and may end up like Belts and Roads Initiative.

Not making it an India-Pak discussion. I hope our GOI works out an amicable solution to allow Chinese companies to setup shop in India. I believe, from Asia Pacific region only India and China can give a tough fight to the West. Can we get back the days of Hindi. - Cheeni Bhai Bhai.