Hub Power's BYD plant to begin production in 2026

Hub Power Company (HUBC) announced that its BYD complete knockdown (CKD) plant, currently under construction, is on track to commence production in the first half of 2026.

In an analyst briefing, the company stated that the plant’s Phase 1 will have an initial production capacity of 50,000 units, with plans to scale up to 100,000 units in Phase 2.

During Phase 1, HUBC aims to manufacture 25,000 units, supported by an estimated capital expenditure of $150 to $170 million (approximately PKR 45 billion).

HUBC plans to launch four flagship 3S dealerships within the coming months, including two in Karachi, one in Islamabad, and one in Lahore.

To drive the electrification of vehicles, HUBC has introduced "HUBC Green," a project focused on developing an electric vehicle (EV) charging network across Pakistan.

The company has signed a memorandum of understanding with Pakistan State Oil (PSO) to install EV chargers at existing PSO sites, utilizing its extensive network. So far, 50 locations have been identified, with chargers at 20 stations expected to be operational by early April.

The company also announced changes to its EV strategy, transferring half of its stake in the EV venture Mega Motors to Mega Conglomerate. This move aligns with management’s focus on growth opportunities and shareholder returns, which they see as optimal for capital allocation.

HUBC has begun delivering BYD’s Atto-3 and Seal models and has established four dealerships in Karachi, Lahore, and Islamabad. The company is partnering with PSO to establish a nationwide EV charging network as part of a joint investment initiative.

In its oil and gas division, HUBC has been participating in bidding rounds both locally and internationally while also exploring offshore opportunities.

Additionally, the company is pursuing solar photovoltaic (PV) manufacturing opportunities, particularly in battery storage systems, which management views as vital for the energy transition. Talks are underway with leading battery manufacturers in this regard.

HUBC reported a consolidated net profit after tax of PKR 23 billion, marking a 28% decline compared to the same period last year. The decrease is attributed to the termination of the base plant’s power purchase agreement (PPA) effective Oct. 1, 2024.

As part of its financial negotiations, HUBC received PKR 36.5 billion in outstanding receivables from the Central Power Purchasing Agency (CPPA-G). In return, the government will assume HUBC’s outstanding obligations to PSO.

Proceeds from the settlement have been used to repay all long-term loans on HUBC’s books, leaving only project-specific debt tied to individual PPAs.