KARACHI: Mega Motor Company, a subsidiary of Hub Power Company Ltd (Hubco), is set to enter the electric vehicle (EV) market in Pakistan in collaboration with Chinese EV giant BYD Auto Industry Company Limited.
Hubco announced in a notification to the PSX on Friday, “Hub Power Holdings Limited, a wholly-owned subsidiary of Hub Power Company Limited, through its associated company, Mega Motor Company (Private) Limited, is entering into a new line of business in electric vehicles with BYD Auto Industry Company Limited in Pakistan.”
The venture will include the execution of definitive agreements and the purchase of assets, pending corporate and regulatory approvals. BYD Auto, known for its leadership in the EV market, sold 1.57 million electric vehicles and 1.44 million hybrid vehicles in 2023, marking a 73% year-on-year increase in EV sales.
According to Arif Habib Ltd Research, the venture’s completion will involve signing definitive agreements and acquiring assets, contingent on corporate and regulatory approvals. The research further noted that for every 5,000 annual unit sales at a price of Rs6 million, with net margins at 10%, the incremental earnings impact on HUBC is likely to be Rs2.31 per share, assuming a 100% stake in the company.
