BYD is moving its brand into every possible nation that they can sell their cars
Pakistan’s automotive sector is fast changing and Chinese auto manufacturer BYD is preparing to commence local assembly in the Pakistan, potentially altering a market long dominated by Japanese carmakers such as Suzuki, Toyota and Honda.
“The plant is expected to become operational in the third to fourth quarter of 2026, with the first locally assembled BYD vehicles anticipated to reach the market later in the year,” Danish Khaliq, Vice President in charge of sales and strategy at Mega Motor Company, BYD’s official partner in Pakistan, told media sources.
BYD Pakistan which will be the name used by Mega Motor Company for marketing and branding purposes started selling imported EVs in Pakistan in 2024 and is currently preparing its first assembly plant near Karachi. The company declined to disclose its sales figures in the South Asian country, but stated that construction of the assembly plant is expected to cost approximately USD 150 million.
BYD is not the first Chinese auto manufacturer to enter Pakistan. FAW Motors entered the market in 2017, followed by the state-owned Changan Automobile in 2018 and the state-owned BAIC Motor in 2019. However, BYD will become the first local EV assembler in Pakistan.
Chinese automakers tend to focus on EVs and hybrid vehicles rather than conventional petrol-powered cars, where competition from Japanese manufacturers is relatively limited. For example, Great Wall Motor began local assembly in 2021 and introduced Haval-branded hybrid SUV models.
Experts stated that the expansion of Chinese automakers into the Pakistan market is primarily driven by government policies that will remain in place until June 2026.
Pakistan’s Auto Industry Development and Export Policy 2021-2026 (AIDEP) offers reduced duties and tax incentives for importing vehicles and establishing assembly plants, with the objective of encouraging new entrants, increasing competition and promoting gradual localisation within the country’s automobile sector.
The policy applies to newcomers across the entire automobile industry and does not exclusively favour Chinese brands or EVs.
Great Wall Motor’s Haval H6 is priced at approximately USD18,000 to USD22,000 in Pakistan, while Toyota’s RAV4 is priced at USD30,000 to USD35,000. BYD’s Atto 3 is available at dealerships for USD20,000 to USD23,000, while its Seal U model is priced at approximately USD25,000 to USD28,000.
The growing presence of Chinese automakers presents increased competition for Japanese companies in Pakistan, which have historically dominated the automotive market.
Industry sources stated that Japanese manufacturers operating in Pakistan maintain high levels of localisation and offer a broader product portfolio. They continue to dominate the small car and sedan segments and retain market leadership despite intensifying competition.
