The facility will kick off BYD’s entry into Pakistan, the fifth-most populated country in the world.
Despite new tariffs on Chinese EV imports in the US and Europe, BYD is widening its lead in key auto markets like Southeast Asia and South America.
BYD is launching new vehicles in surging EV markets like Thailand, Singapore, Brazil, and Mexico. The Chinese automaker is already a leading EV brand in these countries as it expands into new markets. It’s even cracking into Japan’s auto industry, a market dominated by Toyota.
That is generally a strategic mistake. Pakistan’s economy was in bad straights last I heard. The idea of placing a factory to advantage is to pay off the factory and export. Not just to export and hope the factory gets paid off. Meaning the factories in larger Chinese cities had a global advantage in getting paid off. Pakistan is not in good enough shape economically to make that work.
Pakistan, in its timely joining the trend, is ramping up cooperation with international EV giants to amplify its own competence.
Among the global EV sales, 59% are contributed by China, which is also the world’s biggest EV producer, with 64% of global volume. In the first half of this year, China’s EV brand BYD witnessed a record-breaking 95.8% increase y-o-y of cumulative sales, snapping global sales champion. Last month, the country rolled the 20 millionth EV vehicle off the assembly line.
Pakistan is not the only country that has set its eye on the biggest automaker in the world as international venerable auto brands are trying to snatch a share of China’s EV dividend.
BYD will hoover some EV sales. And BYD likely receives some tax breaks/enticements for building factory creating jobs in Pakistan.
Also a different article indicates that this is a joint venture with a Pakistani partner. So Pakistan will gain EV knowledge from the association. This is a ground floor opportunity.
China has 397 out of 400 EV companies that will bankrupt.
If this was Ford you’d never say that. LOL
This is a very capital-intensive industry.
I have had an experience with a Pakistani family and their associations back in the 1990s. One of their friends was a hedge fund guy Harvard MBA. He told a story of one of the major NYC funds managers going into Karachi with $500 million. The market soared and soared. When the American money was all in…the market tanked. The entire thing was a bunch of traders in Karachi taking the very best and brightest American money managers for a ride.
Good luck. I would never touch it. Losses…and losses.
Only Elon believes an EV company is a software company.
{ China and Pakistan have a long-standing economic and strategic partnership, often referred to as the “all-weather friendship.” The China-Pakistan Economic Corridor (CPEC), a major infrastructure project, has further strengthened economic ties between the two countries. BYD’s investment in Pakistan can be seen within the broader context of these strong bilateral relations and China’s Belt and Road Initiative (BRI). }
