Chinese electric vehicle manufacturer BYD BYDDY BYDDF and Tesla Inc TSLA rival plans to establish its first South Asian assembly plant in Pakistan. The move follows a rejection from India.
What Happened: The plant, expected to be operational by 2026, is a collaboration with Pakistan’s largest private electricity producer, Hub Power (Hubco). Hubco’s subsidiary, Mega Motor, will partner with BYD to set up the facility near Karachi's Port Qasim, reported Financial Times on Sunday.
Hubco CEO Kamran Kamal said that the goal is for Pakistan to begin exporting vehicles from the plant. The government is encouraging BYD to target markets in Africa and South Asia, including Bangladesh and Sri Lanka.
"We have big ambitions to be the leading carmaker in this country by the end of the decade," Kamal said. "For any industry in Pakistan to be competitive, they should be focused on the export market."
BYD’s expansion into Pakistan comes amid broader international growth, with new factories planned in Turkey, Hungary, Thailand, and Brazil. The company is also considering a new factory in Mexico.
BYD declined to comment further on the specifics of the Pakistan project, which is still under discussion. The company aims to sell 100,000 plug-in hybrid and fully electric cars annually in Pakistan by 2030, according to the report.
Why It Matters: The decision by BYD to establish a plant in Pakistan follows a series of global strategic moves by Chinese automakers to counteract increasing trade barriers and tariffs.
Recently, the President Joe Biden administration imposed a 100% tax on electric vehicles made in China, affecting companies like BYD and Geely. This move is part of a broader effort to relocate manufacturing and boost U.S. jobs.
China has also advised its automakers to keep advanced EV technology within the country, even as they expand globally. This includes exporting knock-down kits for assembly abroad, and ensuring key parts remain produced in China.
BYD’s expansion is not just limited to Pakistan. The company has been making significant strides in Europe, showcasing their vehicles at trade fairs like the Automechanika in Frankfurt, despite looming EU tariffs.
Furthermore, the competitive landscape in China is intensifying. Companies like NIO are also expanding aggressively, with a significant portion of their management coming from Tesla.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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