{"id":11352,"date":"2024-12-10T05:00:43","date_gmt":"2024-12-10T05:00:43","guid":{"rendered":"https:\/\/gsrra.com\/?p=11352"},"modified":"2024-12-10T05:00:45","modified_gmt":"2024-12-10T05:00:45","slug":"byd-gambles-on-pakistans-ev-market","status":"publish","type":"post","link":"https:\/\/gsrra.com\/?p=11352","title":{"rendered":"BYD gambles on Pakistan\u2019s EV market"},"content":{"rendered":"\n

Despite security concerns for Chinese nationals in Pakistan, investment from China in the automobile sector has picked up recently. All eyes are now on the entry<\/a> of new electric vehicles (NEVs), especially BYD and its electric vehicle (EV) collaboration with Mega Motor Company (MMC), an associated company of the Hub Power Company Limited (Hubco).<\/p>\n\n\n\n

They are establishing<\/a> a plant near Karachi with an annual capacity of 50,000 units and an investment of about $150 million.<\/p>\n\n\n\n

Prior to BYD, Regal Automobiles Industries Limited recently unveiled Pakistan\u2019s first locally assembled electric sport utility vehicle (SUV), the Seres 3 \u2014 priced at over Rs8m \u2014 at its Lahore plant.<\/p>\n\n\n\n

Furthermore, on December 5, 2024, Dewan Farooque Motors Limited informed the Pakistan Stock Exchange regarding the assembly of more than 100 units of Horni EV and handing them over to Eco Green Motors Limited for deliveries to customers.<\/p>\n\n\n\n

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\u2018Selling 50,000 units a year in the first phase would save $250-300m on the conservative side of fossil fuel imports\u2019<\/p>\n<\/blockquote>\n\n\n\n

However, in a difficult and insecure political environment, it seems that Chinese investors and their local partners in Pakistan, though apparently concerned, are more determined to change the landscape of the auto market from fossil fuel to electrified vehicles.<\/p>\n\n\n\n

As per media reports, at least two Chinese nationals were killed with a third injured after their convoy was attacked<\/a> near the Jinnah International Airport on October 6, while in March this year, five Chinese engineers<\/a> and their Pakistani driver were killed in an attack near the China-backed Dasu hydrocarbon project.<\/p>\n\n\n\n

On rising security challenges to the Chinese investors and people, Managing Director, Seres Pakistan, Muhammad Adeel Usman said Chinese have always been very supportive and helpful in understanding the broader issues facing Pakistan and have invested heavily in projects under the China-Pakistan Economic Corridor and private investments.<\/p>\n\n\n\n

\u201cRecently, Chinese investors have also become cautious and are now concerned about their security, and they have slowed down direct investments,\u201d he claimed. The long list of requirements for Chinese to travel in Pakistan includes having a bulletproof car, a certain number of security officers and prior reporting to the police. Such rules and requirements are not feasible for either the Chinese or their local partners, he added.<\/p>\n\n\n\n

Chinese companies are relocating their investments\/businesses to different countries due to the imposition of high import tariffs from the USA and some other countries, opening up opportunities for Pakistan. Many Chinese EV companies planning to set up shop in Pakistan are hesitant due to sudden policy shifts and missed commitments by the government, he continued.<\/p>\n\n\n\n

For instance, the government\u2019s efforts to introduce a new EV policy for 2025-2030, which promotes and incentivises completely built units (CBU) by lowering duties and taxes, overlaps with the last auto policy still in effect. Many companies invested under the Auto Industry Development and Export Policy (AIDEP) 2021-26with the commitment that the policy will be enforced till June 2026. Overlapping the old policy with a new one before its expiration is just one of the many issues that make new entrants hesitant to invest in the Pakistani market, Mr Usman opined.<\/p>\n\n\n\n

\u201cOur EV market will benefit exponentially from new EV players, which would result in improved charging infrastructure and competitive pricing for Pakistani consumers,\u201d he said.<\/p>\n\n\n\n

Seres 3 has been rolled out recently. The company has planned to deliver to the customers who have pre-booked. \u201cWe have over 300 plus pre-bookings, and new orders will be taken soon after our launch in January 2025,\u201d he said.<\/p>\n\n\n\n

On December 5, 2024, Hubco in a stock filing, said that Hub Power Holding Limited, a wholly owned subsidiary of Hubco, has entered a shareholders\u2019 agreement with Mega Conglomerate (private) Limited MCPL, pursuant to which MCPL will subscribe to and become a 50pc shareholder of MMC to strengthen the business venture with BYD.<\/p>\n\n\n\n

The auto market is also a-buzz with talk that Hubco \u2014 currently engaged in independent power producer agreements with the government \u2014 is being facilitated or BYD China is being given preferential treatment. The government seeks to renegotiate or scrap contracts with IPPs to address financial challenges and streamline the power sector. In October, Hubco initiated a negotiated settlement agreement with the government.<\/p>\n\n\n\n

\u201cThese impressions are unfounded. BYD, through a partnership with MMC, is launching products in Pakistan as the country presents a big opportunity for the company as part of their goals to expand overseas,\u201d the spokesman said.<\/p>\n\n\n\n

Pakistan has about 4m cars registered and driven on the roads. Even with 3,000-5,000 New Energy Vehicle (NEV) CBUs, it represents less than 0.1 per cent of the current units in operation. The real push will come when large local assembly operations in Pakistan for NEV are operational, he said.<\/p>\n\n\n\n

The introduction of NEVs will directly reduce Pakistan\u2019s fuel import bill. Currently, Pakistan spends about $16 billion on imported fuel annually, of which an estimated $12bn worth of fuel is for the transport sector. As per the spokesperson, \u201cselling 50,000 units a year in the first phase would save $250-300m on the conservative side on fossil fuel imports\u201d.<\/p>\n\n\n\n

Upon launching expensive EVs for the country\u2019s elite class, the spokesperson elaborated that BYD is initially entering Pakistan with a limited number of products (during the CBU phase) and the company would ensure that it is able to capture more market segments with a broader product base later on.<\/p>\n\n\n\n

He further highlighted that charging infrastructure is critical for mass adoption of NEVs in Pakistan, especially for low-priced models where customers might rely more on commercial charging. Hubco Green hopes to establish a robust universal charging infrastructure in Pakistan to help with further adoption.<\/p>\n\n\n\n

Reference Link:- https:\/\/www.dawn.com\/news\/1877506<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Despite security concerns for Chinese nationals in Pakistan, investment from China in the automobile sector has picked up recently. All eyes are now on the entry of new electric vehicles (NEVs), especially BYD and its electric vehicle (EV) collaboration with Mega Motor Company (MMC), an associated company of the Hub Power Company Limited (Hubco). They are establishing a plant […]<\/p>\n","protected":false},"author":1,"featured_media":11353,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[2],"tags":[4179,4391,282,2507,7699,7700,29,132,1809,105,36,7701],"class_list":["post-11352","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sample-category","tag-automotive-industry","tag-automotives","tag-bri","tag-byd","tag-byd-gambles-on-pakistans-ev-market","tag-byd-set-up-manufacturing-facility-in-pakistan","tag-china","tag-economy","tag-evs-2","tag-geopolitics-2","tag-pakistan","tag-trends-in-auto-sector"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/11352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11352"}],"version-history":[{"count":1,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/11352\/revisions"}],"predecessor-version":[{"id":11354,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/11352\/revisions\/11354"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/media\/11353"}],"wp:attachment":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}