HUBCO announced on Friday that its subsidiary, Hub Power Holdings, through its associated company Mega Motor Company, is starting a new business in electric vehicles with BYD Auto Industry Company, a leading new energy vehicle maker.
HUBCO shared this news in a notice to the Pakistan Stock Exchange (PSX).
"We are informing you that Hub Power Holdings Limited, a subsidiary of The Hub Power Company Limited, through its associated company, Mega Motor Company (Private) Limited, is starting a new business in electric vehicles with BYD Auto Industry Company Limited, in Pakistan," HUBCO stated.
Earlier in April, BYD announced a partnership with Mega Conglomerate (Private) Limited to bring new energy vehicle solutions to Pakistan. BYD is famous for making electric vehicles and was the top EV maker globally in 2023, beating Tesla.
This partnership is important as Pakistan wants to reduce its carbon footprint and use more energy-efficient transportation.
HUBCO also said that the new venture will include signing agreements and buying assets, which need corporate and regulatory approvals.
Experts praised BYD’s entry into the Pakistani market. Sunny Kumar, Deputy Head of Research at Topline Securities, said that more details like the types of EVs, prices, and battery ranges are needed.
“EVs usually cost more than gasoline cars, so they will likely target high-income buyers. Pakistan also lacks EV infrastructure, like charging stations, which has made EVs less popular,” he explained.
Pakistan faces air pollution and greenhouse gas emission challenges. BYD's EVs are expected to help with these issues by providing a cleaner option than gasoline and diesel vehicles. However, environmental issues are often less prioritized in Pakistan due to its low-income status.
