Chinese electric vehicle giant BYD is making a significant move into South Asia, setting up its first assembly plant in Pakistan. This venture, a partnership with Hubco, Pakistan’s largest private electricity producer, aims to jumpstart the country’s automotive manufacturing sector and position Pakistan as an export hub for electric vehicles.

The move comes after BYD was blocked from entering the Indian market due to restrictions on Chinese investments. Pakistan’s government, however, is actively encouraging the venture, seeing it as a chance to boost exports to markets in Africa and South Asia.

BYD’s expansion into Pakistan is part of a larger strategy to establish a global manufacturing footprint. The company is facing increasing tariffs on Chinese exports, including electric vehicles, and seeks to circumvent these barriers by producing locally in key markets.

While BYD’s aggressive international expansion is seen as a positive move, experts caution that the company will face challenges in adapting to different labor laws, work ethics, and cultures.

Hubco, a partner in numerous Chinese power projects under the Belt and Road Initiative, is leveraging its extensive power generation network to build EV charging infrastructure across Pakistan.

The company aims to sell 100,000 BYD electric vehicles annually by 2030, representing a significant portion of the country’s car market.

The exact details of the BYD-Hubco partnership, including investment size and model types, are still under discussion. However, the venture has generated significant optimism in Pakistan, with hopes that it will not only stimulate the domestic automotive industry but also contribute to the country’s economic growth through exports.