KARACHI: The Hub Power Company (HUBCO) has confirmed that its BYD electric vehicle assembly plant in Pakistan remains on schedule to begin operations before the end of 2026, dismissing concerns over a possible delay in local production.
The update was shared during HUBCO’s annual general meeting, according to a report by Arif Habib Limited (AHL). An analyst at the brokerage firm said the facility was expected to become operational within four to five weeks.
The development marks an important step in BYD’s plans to establish local vehicle assembly operations in Pakistan, where demand for electric and hybrid vehicles is creating new opportunities for automobile manufacturers.
BYD targets sales of up to 1,500 vehicles per month
According to the AHL report, HUBCO management is targeting initial sales of approximately 1,000 to 1,500 BYD vehicles per month as local assembly operations gradually expand.
The company also intends to introduce additional BYD models in phases rather than launching several vehicles simultaneously.
Future models will be selected according to market demand, vehicle categories and price segments offering stronger sales potential.
The phased approach is intended to align the company’s product lineup with consumer preferences and the developing electric vehicle market in Pakistan.
BYD plant to produce 25,000 vehicles annually
The assembly facility, located in Gharo, Sindh, is expected to have an initial annual production capacity of 25,000 vehicles.
According to earlier company announcements, the plant’s capacity could eventually be expanded to approximately 50,000 vehicles per year.
The project is also expected to generate more than 1,100 employment opportunities.
BYD has previously described the Pakistan facility as its sixth production plant outside China, reflecting the company’s broader international expansion.
HUBCO targets 80% local parts production
HUBCO has outlined a long-term objective of achieving up to 80 percent localisation in vehicle manufacturing.
However, the company expects the initial phase of production to depend entirely on imported components and raw materials.
Localisation will be introduced gradually as the company develops its domestic supply chain and expands manufacturing capabilities.
Achieving higher local content could eventually reduce reliance on imported automotive components and improve production costs.
The 80 percent localisation figure remains a long-term target rather than a level expected when the plant begins operations.
Will locally assembled BYD vehicles become cheaper?
The start of local assembly could strengthen BYD’s position in Pakistan’s electric vehicle market, but it does not necessarily mean immediate reductions in vehicle prices.
During the initial production phase, the company will continue relying on imported components, leaving costs sensitive to exchange-rate fluctuations, import duties, taxes and production volumes.
Greater localisation may help reduce some of these pressures over time, although any future price adjustments will depend on market conditions and company decisions.
For now, HUBCO’s latest update indicates that the BYD Pakistan assembly project remains on track, with operations expected to begin before December 31, 2026.