BYD to produce electric cars in Pakistan as early as 2026

Pakistan is BYD 's latest destination. The Chinese automaker will produce electric cars there starting in July or August of next year, taking advantage of incentives offered by the local government.

Danish Khalid, vice president of sales and strategy at BYD Pakistan, told Reuters that construction on the factory began in April near Karachi. It is the result of a collaboration between BYD and Mega Motor Company.

Maximum production capacity, in double shifts, will be 25,000 units per year, but it was not specified whether the plan is to reach that number. The target market will be Pakistan, but there is the possibility of exports to neighboring right-hand drive countries.

In the first phase, the operation will consist of assembling imported parts, while local production will be limited to non-electrical components.

The electric and plug-in hybrid car market is booming in Pakistan, where BYD arrived in March of this year. This Friday, it will launch another model for that country—the Shark 6 plug-in hybrid.

Expansion into Pakistan, slowdown in Europe

In recent days, Reuters reported that BYD is expected to 'put on hold' its plans for Europe. Mass production at the new factory in Szeged, Hungary, will only begin in 2026, and it will be far from at full capacity.

On the other hand, it is considering establishing production in Turkey, with a factory capable of producing 150,000 units per year. This would allow it to export to the European market without tariffs, but with lower labor costs.

In Hungary, the Atto 3, Dolphin and Seagull are to be produced, while the Seal U SUV, Sealion 5, Seal U Dmi and Seal 06 Dm-i are to be designed in Turkey.

There's also a setback in plans to open a factory in Mexico —a plan that will no longer move forward. A few weeks ago, BYD Executive Vice President Stella Li admitted to Bloomberg that she was rethinking the strategy in the context of US tariffs and ongoing geopolitical tensions.

Read Also: BYD Slows Down Production Plans in Europe. Here's Why