ISLAMABAD: Chairman Hub Power Company (HUBCO) Habib Ullah Khan has urged the government to extend incentives on Completely Built Units (CBUs) electric vehicles under the Auto Industry Development and Export Policy (AIDEP) 2021–2026 for one more year, until June 30, 2027, to sustain investor confidence and support the growth of Pakistan’s nascent electric vehicle (EV) market.
In a letter addressed to Special Assistant to the Prime Minister Haroon Akhtar Khan, the HUBCO chairman, on behalf of the company and its subsidiary Mega Motor Company (MMC), highlighted the rapid progress on Pakistan’s first state-of-the-art New Energy Vehicle (NEV) manufacturing plant being established in partnership with global EV leader BYD.
Describing the project as a significant step toward localized industrialisation, the company stated that the facility—spread over 73 acres—will have an initial production capacity of 25,000 units per annum, with provisions to scale up to 50,000 units in Phase-II. Civil and structural works have already surpassed 75 percent completion, with the Commercial Operations Date (COD) on track for the fourth quarter of 2026.
The project involves an investment of over $200 million in Phase-I alone, making it one of the largest private-sector industrial investments in Pakistan’s automotive history. The assembly line is being developed in close collaboration with BYD Global to ensure international standards in automation, tooling, and quality assurance, enabling the production of both electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs).
According to the company, achieving a 30 percent NEV penetration could reduce Pakistan’s fuel import bill by $2.5–2.75 billion annually and cut greenhouse gas emissions by around one million metric tons of CO₂, contributing to the country’s commitments under the Paris Agreement.
The initiative is also expected to generate significant economic benefits, including upskilling of the workforce, modernisation of the local industry, creation of up to one million direct and indirect jobs, and an estimated GDP impact of $3.23 billion over the next five years.
While reaffirming its commitment to local manufacturing, HUBCO noted that MMC and BYD have already begun investing in the distribution of EVs and PHEVs in Pakistan to support the transition.
The chairman stressed the need for a progressive policy framework, particularly the continuation of duty relaxations on CBUs linked to genuine local investment, to enable the government’s medium- and long-term NEV penetration targets.
He emphasised that extending AIDEP incentives for an additional year would provide short-term policy continuity, strengthen institutional investment certainty, and reinforce consumer confidence in EVs, which have gained traction in recent months.
“We are committed to establishing sustainable electric mobility solutions in Pakistan and invite your office to inaugurate our plant upon completion,” Khan concluded. Ends
