BYD, China’s leading NEV (new energy vehicle) maker recently made headlines when it revealed its plan to enter the Pakistan market, and industry experts see it as a positive sign for the country.
Related: BYD Enters Pakistan’s Passenger Vehicle Market
BYD will enter Pakistan’s passenger vehicle market in collaboration with local partner Mega Conglomerate Pvt. Ltd. (Mega). The announcement was made during the BYD Asia Pacific Dealer Conference event in Xi’an, China, with key figures such as Liu Xueliang, General Manager of BYD Asia Pacific Auto Sales Division; Zhang Jie, Vice General Manager of BYD Asia Pacific Auto Sales Division; and Aly Khan, Executive Director of Mega, present at the signing ceremony.
The move comes at a time when Pakistan is seeking to reduce its carbon footprint and embrace cleaner, more energy-efficient modes of transportation. Various analysts and auto industry experts have lauded the development which is seen as a glimmer of light for a market that is long dominated by obsolete, substandard, feature-ripped & globally retired cars sold at sky-high prices that are taking the market down with sales constantly going downhill over time.
Related: Study Shows BYD Seal and Dolphin are the Safest Cars in the World
Auto sector expert Mashood Ali Khan welcomed the news of BYD coming to Pakistan, stating that it signified a positive development, especially at a time when businesses were leaving the country due to tough economic conditions. Khan, who also runs an automotive parts manufacturing company, highlighted that Chinese companies like BYD could play a crucial role in helping countries like Pakistan transition from fossil fuel cars to electric vehicles, particularly due to their ability to produce affordable EVs. He said:
“It’s a big company, and it must have seen something promising before planning to enter the Pakistani market. Otherwise, the price point of EVs is very high, and very few can afford Tesla, Mercedes, Audi, or BMW EVs in Pakistan. Companies like BYD give hope to underdeveloped countries like ours to upgrade to EVs.”
He noted that the share of EVs in the mobility sector increased from just over 2% five years ago to 14%, and the trajectory indicated a continued growth in the EV market. Khan also expressed hope that BYD might start localizing its EV production in Pakistan, making the country an export partner for its right-hand drive (RHD) vehicles.
Mashood Khan emphasized that the entry of big brands like BYD into Pakistan would enhance the country’s export potential in the mobility sector. However, he also stressed that Pakistan should aim to partner with foreign companies to localize production and eventually increase exports.
“Becoming just a trading base will not help Pakistan. We need to move from an import-based industry to an import substitution as well as an export-based industry.”
Dr. Aazir Anwar Khan, Founder and Director, of the Integrated Engineering Centre of Excellence (IECE) at the University of Lahore, also cautiously welcomed the news of BYD entering the Pakistani market. He emphasized the importance of EV companies offering affordable price points to encourage widespread adoption.
“Otherwise, there are few rich people who can afford cars over Rs10 million,” he stated, highlighting the need for EV companies to pass on low custom duties to buyers. Dr Aazir suggested that EVs should be priced between Rs 2.5 million and Rs 6 million, a range that aligns with a bigger majority of car buyers’ budgets.
Related: BYD Qin Plus DM-i is Cheaper than Our Suzuki Wagon R
He explained that importing EVs in completely built-up units (CBU) form incurred around 35% of duties and taxes, while in completely knocked down (CKD) form, the costs amounted to just 5%. This presents an opportunity to offer inexpensive EVs to the Pakistani market, by such companies having assembly plants here.
Dr Aazir stressed that making EVs more accessible was crucial for achieving desired outcomes such as reducing fuel consumption, lowering fuel import bills, and cutting carbon emissions. He also noted that BYD’s exclusive focus on EVs sets it apart, contrasting it with Toyota’s recent introduction of a petrol variant for the Corolla Cross, which was initially offered & touted as a low-fuel-consuming hybrid car.
Related: BYD Now Exports Cars in its Own Purpose-Built Vessel
Aly Khan, Executive Director, Mega, said earlier in a statement to the media that they would move aggressively for EV adoption in the country. He also mentioned that the first three BYD flagship showrooms would be opened in Karachi, Lahore, and Islamabad in 2024. He said:
“As one of Pakistan’s largest conglomerates, we are thrilled to embark on this transformative journey with BYD. By combining our strengths and resources, we aim to catalyze the widespread adoption of EVs in Pakistan, driving positive change and ushering in a new era of sustainable mobility.”
Aly Khan added that they aimed to provide customers with the opportunity to experience BYD’s world-leading NEV technology with a retail experience where customers would be able to place orders directly. Mega Conglomerate is the parent company of Hub Power Company Limited (HUBC), which is listed on the Pakistan Stock Exchange (PSX) and operates several power plants in the country.
Pakistan, like many other developing countries, faces challenges related to air pollution and rising greenhouse gas emissions. The introduction of BYD’s EVs is expected to help address these issues by offering a cleaner alternative to traditional gasoline and diesel vehicles. In addition to its environmentally friendly benefits, BYD’s EVs are also known for their advanced technology, performance, and safety features. The company’s electric buses, for example, have been widely adopted around the world for their reliability and efficiency, making them an attractive option for Pakistan’s public transportation sector.
Possible BYD EVs for Pakistan
BYD has disrupted several markets across the globe with its astonishingly low-priced EV models. For example, its least-priced Seagull EV costs just $9,700 which is equivalent to around Rs 26.9 lac here, possibly making it an ideal competitor of the 660cc Suzuki Alto. The company has also recently introduced its Seal electric sedan in Bangladesh, whereas the Atto 3 also does well in many RHD markets including Oceania, Japan, ASEAN, and the neighboring India. Plus, the Dolphin hatchback is another key model that can be introduced in Pakistan.
Besides, BYD models such as the Han, Tang, and Song have been doing quite well in the European & Middle Eastern markets for quite some time. It will perhaps be too early to predict which EVs BYD will be bringing here in Pakistan, however looking at the aggressive approach the company has tapped most markets around the world, the possibility of BYD’s low-priced models disrupting the local automotive landscape cannot be ruled out. To know more about BYD, see our earlier posts.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
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