BYD plots another overseas EV plant: Here’s why that could be a bigger deal than you think

China’s leading automaker, BYD, is reportedly planning to build yet another EV factory overseas as it looks to take on new global markets. The facility will kick off BYD’s entry into Pakistan, the fifth-most populated country in the world.

Although BYD briefly surpassed Tesla in late 2023 to become the largest global EV maker, Tesla quickly took back the title in 2024 and has held it ever since.

However, that could change soon. Several reports are forecasting that BYD will outpace Tesla, and it could happen by the end of 2024.

According to research from Bloomberg Intelligence, BYD is on track to regain the title by the end of the year. The study pointed to surging EV demand in China, while the US and Europe are expected to lag.

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.

BYD plans new EV plant for Pakistan

To fuel its expansion, BYD has opened or plans to open new EV plants in key overseas markets. BYD opened its first EV plant in Thailand last month.

It’s also planning to build factories in Hungary, Brazil, and Turkey. According to the latest, BYD is now plotting its newest EV plant in Pakistan.

A person close to the matter said BYD plans to build a plant in Karachi to grab its share of Pakistan’s growing EV market, according to Bloomberg. The person said BYD will introduce three models in Pakistan, with more on the way.

A BYD spokesperson confirmed plans to launch in Pakistan but did not comment on the planned plant or investments in the region.

Pakistan is the fifth most populated country in the world. Although EV sales have yet to take off, new affordable models could help drive demand.

Japanese automakers like Toyota and Suzuki still dominate the Pakistan auto market, but Chinese automakers like SAIC, Great Wall Motor, and now BYD are making a strong push into the region.

BYD’s plant will be in the same region as rivals, including Toyota, Suzuki, and Kia. According to the source, the plant is expected to be completed in the first half of 2026. The final details are still being ironed out.

Electrek’s Take

As Bloomberg notes, Pakistan’s EV market is still small compared to overall auto sales. However, that’s expected to change very soon.

After investment firm ADM Group announced it would inject up to $250 million into building EVs in Pakistan on Friday, the company said it sees “exponential growth” in EV sales in the region.

“A total of 14 percent of all new cars sold were electric in 2022, up from around 9 percent in 2021 and less than 5 percent in 2020,” the investment firm said.

Pakistan set a goal of having 30% of passenger car sales to be electric by 2030. By 2040, that number rises to 90%. The country is currently rolling out the charging infrastructure to support the transition. The next phase includes EV manufacturing. BYD looks to get ahead of the trend with another overseas plant planned.