Pakistan's HUBC seeks shareholder nod for $90M EV venture with BYD

The Hub Power Company (HUBC) has scheduled its annual general meeting for Wednesday where it will seek shareholder approval for routine business as well as its proposed investment in Mega Motor Company (MMCPL), a new electric vehicle joint venture with Chinese automaker BYD.

According to the AGM notice, HUBC will present key resolutions related to its automotive ambitions through MMCPL, which include the development of a new energy vehicle (NEV) assembly plant in Gharo, Sindh. The facility is projected to have an initial capacity of 25,000 units annually, expandable to 50,000 units.

MMCPL plans to raise USD 90 million (PKR 25 billion) in financing from both local and international lenders, including British International Investment, Bank of Punjab, and Habib Bank Limited. HUBC has committed to providing a corporate guarantee of up to USD 55 million (PKR 16 billion) until June 30, 2039, to cover potential cost overruns, debt servicing, or working capital shortfalls.

Site development is already underway, with initial work such as boundary wall construction, land leveling, piling, and foundation laying in progress. The plant is expected to become commercially operational by the fourth quarter of fiscal year 2026 (4QFY26).

The project will be funded with a 60:40 debt-to-equity ratio, requiring an initial equity injection of approximately USD 60 million (PKR 17 billion), proportionate to the shareholders’ stakes.

HUBC management projects the venture will achieve an average long-term return on equity of 25%, with dividend payouts expected within two to four years of commercial operations.

The move marks a strategic diversification for HUBC, traditionally a power generation company.

Through a 50% stake in MMCPL—a joint venture with its parent company, Mega Conglomerate—HUBC has acquired rights for local assembly and distribution of BYD vehicles in Pakistan.

As part of this initiative, BYD has already launched three vehicle models in Pakistan—the Atto 3, Seal, and Shark 6. Sales currently rely on completely built-up imports, but locally assembled models are expected post-plant completion.

Market response has been encouraging, with over 2,000 CBU vehicles sold, including 500 bookings of the Shark 6 in its first month.

In parallel, HUBC has launched “HUBCO Green”, a new initiative to support Pakistan’s EV infrastructure.

The company has signed a memorandum of understanding with Pakistan State Oil to install EV charging stations across PSO outlets.

To date, eight charging stations have been established, with plans to install additional units every 150-200 kilometers along the Karachi-Peshawar highway. Regulatory hurdles have slowed implementation, but HUBC aims to continue expanding the network.

HUBC’s average financing cost for the project is based on the 1- to 3-month Karachi Interbank Offered Rate (KIBOR), plus 0.3% per annum.

If approved, the investment marks a significant pivot for HUBC beyond its core power generation business, placing it at the center of Pakistan’s emerging electric vehicle ecosystem.