HUBCO targets December start for local BYD assembly, Sealion 6 first in line

The Hub Power Company (HUBCO) expects its BYD vehicle assembly plant to commence operations in December 2026, with the Sealion 6 plug-in hybrid electric vehicle (PHEV) planned as the first locally assembled model.

During its corporate briefing on Tuesday, November 3, management said it was also evaluating additional vehicle models, particularly in the higher-volume B and C segments, to broaden its product portfolio.

When will HUBCO begin local BYD assembly?

Through Mega Motor Company, HUBCO plans to inaugurate its assembly plant in December 2026, with local production to follow. The first planned completely knocked-down (CKD) model is the BYD Sealion 6 DM-i, a plug-in hybrid SUV unveiled earlier this year. Management has not announced a specific production start date within December.

Management said more than 10,000 BYD vehicles had been sold in Pakistan, while the automotive business recorded a profit of approximately PKR 1.5 billion during the first quarter of FY27, including HUBCO's share of PKR 780 million.

How is HUBCO expanding its EV charging network?

Management said approximately 25 to 27 charging points were operational, providing coverage along the Karachi-Peshawar route, with network uptime exceeding 99.5%.

The company's official presentation separately reported 24 operational DC fast chargers nationwide, covering highways, major cities and selected BYD dealerships.

HUBCO plans to initially increase the number of charging stations to 50 and subsequently expand the network to 100, targeting one station every 150 kilometers along major highways. It is also evaluating expansion through partnerships with oil marketing companies (OMCs).

The company has signed collaboration agreements with PUMA Energy and Gas & Oil Pakistan/Aramco.

Charging currently costs around PKR 100 per kilowatt-hour, with backup generators installed to ensure uninterrupted operations.

Management said widespread deployment of flash charging and battery-swapping infrastructure for four-wheelers was not commercially feasible in Pakistan at this stage.

How will the CPHGC transformer failure affect operations?

Separately, HUBCO management said the recent transformer failure at China Power Hub Generation Company (CPHGC) Unit-1 was expected to have a limited impact on overall electricity dispatches.

North-south transmission constraints have restricted the plant's dispatches to around 600 megawatts (MW), while operational Unit-2, with a capacity of 660 MW, is sufficient to meet current requirements.

The affected unit is expected to resume operations within the next few months. Management said capacity-payment deductions would largely be covered through business-interruption insurance, although the final financial impact would depend on deductibles and the duration of the outage.

Management expects CPHGC to become debt-free in 2029. However, conversion of the plant to locally sourced coal may not be economically feasible at this stage because of the substantial investment required.

The improvement in CPHGC's profitability was attributed to higher electricity generation, which enabled the company to earn additional variable operation and maintenance revenue.

What did HUBCO report on dividends and receivables?

HUBCO and Hub Power Holdings Limited (HPHL) received dividends of PKR 4.9 billion from Thar Energy Limited (TEL) and PKR 2.9 billion from ThalNova during the first quarter of FY27, compared with PKR 10.8 billion and PKR 4.9 billion, respectively, during the full FY26.

CPHGC declared two dividends during the quarter. During the briefing, management also cited distributions of PKR 36 billion for FY26 and PKR 24 billion for the first quarter of FY27.

HUBCO's consolidated net profit attributable to the holding company increased 10% year-on-year to PKR 12.79 billion during the first quarter of FY27, while earnings per share rose to PKR 9.86 from PKR 8.96.

Management said outstanding overdue receivables stood at PKR 59 billion for CPHGC, PKR 8.2 billion for TEL, PKR 5.7 billion for ThalNova and PKR 5.7 billion for Laraib.

Load factors across HUBCO's power plants also improved during the first quarter of FY27, primarily because of reduced availability of re-gasified liquefied natural gas (RLNG)-based electricity generation.