China’s BYD Collaborates with HUBCO Subsidiary to Introduce EVs in Pakistan

China’s BYD Collaborates with HUBCO Subsidiary to Introduce EVs in Pakistan

Business

HUBCO announced on Friday that its wholly-owned subsidiary, Hub Power Holdings, is entering a new line of business. This venture is through its associated company, Mega Motor Company (Private) Limited. They will collaborate with BYD Auto Industry Company Limited, the world’s leading new energy vehicle manufacturer.

Official Announcement

HUBCO shared this development in a notice to the Pakistan Stock Exchange (PSX) on Friday. The notice stated, “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.”

Strategic Collaboration

Earlier in April, BYD announced a strategic collaboration with its local partner, Mega Conglomerate (Private) Limited. They aim to introduce innovative New Energy Vehicle (NEV) solutions in Pakistan.

BYD’s Global Standing

BYD is renowned for its pioneering work in electric vehicle production. In 2023, BYD outpaced Tesla to become the leading manufacturer of electric vehicles globally.

Importance for Pakistan

This partnership is significant as Pakistan aims to reduce its carbon footprint and adopt more energy-efficient transportation modes.

Future Steps and Approvals

HUBCO’s notice mentioned that the new venture will involve the execution of definitive agreements and the purchase of assets. This process is subject to corporate and regulatory approvals and consents.

Market Impact

Sunny Kumar, Deputy Head of Research at Topline Securities, views this as a positive development for Pakistan’s auto sector. He believes that the entry of new players will promote competition in the local market. However, he noted that further details about the deal, such as EV models, prices, and battery range, are needed.

Target Market and Infrastructure Challenges

Kumar highlighted that EVs usually have higher prices compared to gasoline-based vehicles, often appealing to the high-income segment. Additionally, Pakistan faces a lack of EV-related infrastructure, which has hindered the adoption of electric vehicles.

Environmental Benefits

Pakistan struggles with air pollution and rising greenhouse gas emissions. The introduction of BYD’s EVs is expected to help address these issues by offering a cleaner alternative to traditional vehicles.

Economic Realities

Despite environmental benefits, Kumar emphasized that in Pakistan, cost is a primary concern for consumers. Environmental issues often take a back seat in a low-income nation like Pakistan.

Also read this: https://www.skipper.pk/2024/05/22/mashreq-pakistan-selects-ptcl-to-expedite-the-banks-digital-transformation-journey/

 

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