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Pakistan is charging ahead into a greener, smarter future — and China is riding shotgun. As the global electric vehicle (EV) market continues to expand, Pakistan is reinforcing its ties with China to become a serious player in the EV space. From strategic joint ventures to technology transfer agreements, both nations are making big moves that could transform Pakistan’s auto industry for good.
In recent months, we’ve seen major developments unfold. Chinese companies like BYD and LAUNCH have signed landmark agreements with Pakistani partners, setting the stage for local EV production, battery innovation, and even the export of electric vehicles from Pakistan to international markets. These collaborations aren’t just business deals — they’re stepping stones toward a cleaner environment, reduced oil imports, and long-term economic sustainability.
Pakistan’s government is also stepping up its game. With initiatives like reduced tariffs on EV charging stations, the National Electric Vehicle Policy 2025 and targeted support for foreign investment in clean technology, the country is laying the groundwork for a nationwide EV ecosystem. Planning Minister Ahsan Iqbal recently emphasized this direction during his Beijing visit, calling China “a natural partner” in Pakistan’s journey toward modern mobility.
But what does all this mean for the average Pakistani? It means more jobs, cleaner cities, lower fuel dependency, and eventually, more affordable EVs on the road. It’s also a powerful signal that Pakistan is ready to become not just a consumer of EV technology — but a contributor.
In this blog, we’ll dive into the biggest China-Pakistan EV partnerships making headlines, explore how this collaboration is shaping policy and technology, and examine what it all means for the future of mobility in Pakistan. Buckle up — the road ahead is electric.
Over the past year, Pakistan and China have significantly deepened their cooperation in the electric vehicle sector. Multiple high-profile partnerships and joint ventures are laying the foundation for a modern EV industry in Pakistan. These developments aren’t just about assembling vehicles—they represent a strategic effort to boost local production, adopt new technology, and position Pakistan as a regional EV hub.
In February 2025, Shanghai Launch Automotive Technology (LAUNCH) signed a historic Memorandum of Understanding (MoU) with Yousuf Dewan Companies (YDC), a major Pakistani industrial group. This agreement goes far beyond simple manufacturing—it covers the complete ecosystem for electric vehicles in Pakistan.
The focus is on setting up CKD (completely knocked down) EV assembly lines, localized production of right-hand and left-hand drive vehicles, battery technology research, and even battery recycling. These aren’t small steps—they’re long-term investments designed to make Pakistan a serious player in both local and international EV markets.
What makes this collaboration unique is its export vision. Instead of only assembling EVs for Pakistani roads, the partners plan to ship vehicles to other right-hand drive markets in Asia and Africa. It’s a major vote of confidence in Pakistan’s manufacturing potential and geographic location.
Another major milestone is the partnership between China’s BYD—one of the world’s largest EV manufacturers—and Pakistan’s Mega Motor Company, a subsidiary of Hub Power. Together, they are building an advanced EV assembly plant near Karachi.
Set to become operational by mid-2026, this plant will initially produce around 25,000 units per year. That number is expected to grow as local demand rises and export opportunities expand. BYD’s global experience and Pakistan’s growing market create the perfect mix for success.
The government has also played its part—cutting EV charging station tariffs by 45% earlier in 2025 to encourage infrastructure development. With strong policy support and BYD’s cutting-edge technology, this project could be a game-changer for EV adoption in Pakistan.
Pakistan’s private sector isn’t staying on the sidelines either. Nishat Group, a major business conglomerate, has teamed up with China’s Chery to assemble electric vehicles locally. With an initial investment of $100 million, the partnership aims to start production in October 2025.
Chery plans to launch its popular EV models like the Omoda and Jaecoo series in Pakistan. These vehicles are designed to meet the needs of modern drivers, offering long range, sleek design, and affordability. This venture is especially important because it brings real choices to Pakistani consumers and adds healthy competition to the market.
It also shows how private players are aligning with Pakistan’s broader EV policy goals. By building vehicles locally, Nishat and Chery can offer better prices, create jobs, and reduce the country's dependence on expensive fuel imports.
Pakistan’s growing collaboration with China in the electric vehicle (EV) sector is more than just a collection of business deals — it’s part of a bigger strategy to transform the country’s economy, environment, and industrial base. These partnerships are accelerating not only technological advancement but also helping shape policies, create new jobs, and shift Pakistan’s long-term energy future.
The Pakistani government is playing a crucial role in supporting this transition. In line with the National Electric Vehicle Policy (NEV), the state has introduced several incentives to boost both production and adoption of EVs. These include tax breaks for manufacturers, duty reductions on EV imports, and notably a 45% cut in electricity tariffs for EV charging stations introduced earlier in 2025.
Additionally, Pakistan has streamlined the regulatory framework to encourage foreign direct investment, particularly from China. Planning Minister Ahsan Iqbal recently visited Beijing to reaffirm Pakistan’s commitment to clean mobility, emphasizing the country’s readiness to become a manufacturing base for both domestic use and export to regional markets.
These policy measures are not just symbolic. They are creating real momentum, encouraging companies like BYD, Chery, and LAUNCH to move from talks to action, and are helping local firms to scale up operations with confidence.
One of the most exciting aspects of the Pakistan-China EV collaboration is the transfer of cutting-edge technologies. Chinese firms are bringing advanced expertise in battery design, vehicle architecture, and software systems. Of particular interest is the introduction of sodium-ion battery technology an innovative alternative to lithium-ion batteries that offers better cost-efficiency and thermal stability.
By incorporating such technologies into local manufacturing, Pakistan stands to gain not just cheaper EVs, but also critical know-how that can be used across multiple sectors from energy storage to grid optimization.
Chinese partners have also pledged support for battery recycling and innovation labs in Pakistan. This will not only reduce environmental waste but also open up high-tech jobs in engineering and research, positioning Pakistan as a serious contender in the EV innovation space.
Perhaps the most forward-looking part of this evolving relationship is Pakistan’s aim to become an EV export hub. With multiple right-hand drive markets in the region (such as Sri Lanka, Bangladesh, South Africa, and Southeast Asia), Pakistan’s geographic position is a strategic advantage.
The LAUNCH–YDC partnership has already announced plans to export EVs assembled in Pakistan to international markets. BYD’s assembly plant near Karachi is also being designed with export in mind, with scalability built into its operations.
If Pakistan plays its cards right balancing local demand with export goals, and maintaining strong quality standards — it could carve out a niche in the global EV supply chain. And with the right policies, infrastructure, and partnerships, the country could move from being an importer of high-end tech to an exporter of clean, smart mobility solutions.
The growing alliance between Pakistan and China in the electric vehicle sector signals more than just industrial progress—it represents a bold shift toward sustainable development and future-focused policymaking. With strategic partnerships like LAUNCH–YDC, BYD–Mega Motor, and Nishat–Chery, Pakistan is laying the groundwork for a thriving EV ecosystem that can serve both local needs and international markets.
These developments aren’t just about cars they’re about creating an entire green mobility infrastructure. From advanced battery research and recycling to export-oriented manufacturing and clean energy policies, every move points toward a cleaner, more resilient Pakistan. The EV industry is poised to bring thousands of jobs, reduce our dependence on expensive fuel imports, and help combat urban air pollution benefits that affect every Pakistani citizen.
But the journey is just beginning. While the foundation is solid, challenges remain: infrastructure expansion, public awareness, and affordability must be addressed to ensure widespread EV adoption. Continued government support, along with responsible private investment, will be essential to sustaining this momentum.
As we head into 2026 and beyond, Pakistan has a real chance to lead the region in electric mobility. The collaboration with China offers not only economic value but also knowledge, innovation, and a cleaner future. Whether you're a policymaker, business leader, or everyday commuter it’s time to support and embrace Pakistan’s EV revolution.
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