HUBCO announced on Friday that its wholly-owned subsidiary (Hub Power Holdings) – through its associated company Mega Motor Company (Private) Limited – is entering into a new line of business in electric vehicles with BYD Auto Industry Company Limited, the world’s leading new energy vehicle manufacturer.
The development was shared by HUBCO in a notice to the Pakistan Stock Exchange (PSX) on Friday.
“We hereby convey the following information: Hub Power Holdings Limited, a wholly-owned subsidiary of The Hub Power Company Limited, through its associated company, Mega Motor Company (Private) Limited, is entering into a new line of business in electric vehicles, with BYD Auto Industry Company Limited, in Pakistan,” HUBCO said in its notice.
Earlier in April, BYD announced a strategic collaboration with its local partner Mega Conglomerate (Private) Limited to introduce innovative New Energy Vehicle (NEV) solutions in Pakistan.
BYD, known for its pioneering work in electric vehicle production, notably outpaced Tesla in 2023 to claim the top spot for the highest number of electric vehicles manufactured globally.
This partnership comes at a critical juncture as Pakistan aims to reduce its carbon footprint and adopt more energy-efficient modes of transportation.
Meanwhile, HUBCO in its notice on Friday said that the consummation of this new venture will include execution of definitive agreements and purchase of assets and is subject to corporate and regulatory approvals and consents.
Experts hail Chinese EV giant BYD’s entry to Pakistan market
“This is an overall positive development for the country’s auto sector, as the entry of new players will promote competition in the local market,” Sunny Kumar, Deputy Head of Research at Topline Securities, told media.
The analyst was of the view that further details regarding the deal need to come to light such as EV models to be introduced, prices, battery range etc.
“Normally EVs are priced higher than the gasoline-based autos. Therefore, it is expected that the EVs will most probably target the high-income segment.
“Moreover, there is also an issue of lack of EV-related infrastructure in the country. EVs have not attracted much traction in Pakistan due to a lack of charging stations and other infrastructure,” he said.
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