Mega Motor Company (Private) Limited has taken significant steps to establish itself in Pakistan’s growing electric vehicle (EV) sector. The company has entered into a supply and manufacturing agreement, as well as a technical license agreement, with BYD Auto Industry Company Limited, the world’s largest EV manufacturer. Furthermore, in June 2024, Mega Motor finalized a distribution agreement to bring BYD vehicles to the Pakistani market.
Building on this momentum, Hub Power Holdings Limited (HPHL), a wholly owned subsidiary of The Hub Power Company Limited, has entered into a shareholders’ agreement with Mega Conglomerate (Private) Limited (MCPL). Through this agreement, MCPL will acquire a 50% stake in Mega Motor Company. This partnership aims to consolidate the expertise of both HPHL and MCPL to strengthen their collaboration with BYD and establish a robust EV ecosystem in Pakistan.
BYD, a publicly listed Chinese multinational, leads the global EV market with record-breaking sales of 1.57 million battery electric vehicles and 1.44 million plug-in hybrid units in 2023, reflecting a 73% year-on-year growth. Its entry into Pakistan, supported by this strategic partnership, represents a pivotal step toward advancing clean energy mobility in the country.
According to material shared with the Pakistan Stock Exchange, the consummation of the agreement remains subject to regulatory approvals and consents. This development underscores the long-term potential of EVs in Pakistan’s automotive market, given the increasing need for sustainable transport solutions.
Financially, the venture is expected to have a positive impact on Hub Power Company’s earnings. Analyst Rao Aamir Ali of Arif Habib Limited stated that, assuming an average vehicle price of Rs 11.1 million, 10% net margins, and annual sales of 5,000 to 10,000 cars, HUBC’s earnings could increase by Rs 2.1 to Rs 4.3 per share.
This partnership not only underscores the growing focus on sustainability in Pakistan but also positions the country to benefit from BYD’s technological expertise and the combined strengths of HPHL and MCPL for increased electrical mobility in the country.
