In its bid to strengthen business collaboration with Chinese electric vehicle giant BYD Auto Industry Company Limited, Hub Power Holdings Limited (HPHL) has entered into a shareholders’ agreement with Mega Conglomerate (Private) Limited (MCPL).

The development was shared by HUBCO, the parent company of HPHL and a strong player in Pakistan’s energy sector, in a notice to the Pakistan Stock Exchange (PSX) on Thursday.

“HPHL, a wholly owned subsidiary of The Hub Power Company Limited, has entered into a shareholders agreement with MCPL, pursuant to which MCPL will subscribe to and become a 50% shareholder of Mega Motor Company (Private) Limited,” read the notice.

The company shared that the rationale of the transaction is “to consolidate the expertise of both HPHL and MCPL and strengthen the business venture with BYD Auto Industry Company Limited”.

“The consummation of the shareholders’ agreement is subject to the necessary regulatory approvals and consents,” it added.

In August, BYD, a global leader in electric vehicles and renewable energy solutions, entered the Pakistani market in collaboration with HPHL.

BYD’s entry into Pakistan came on the heels of its global performance, having claimed the title of the world’s top NEV seller in both 2022 and 2023.

The company recently celebrated the production of its 8 millionth new energy vehicle, a milestone achieved in just over three years since reaching the 1 million mark in May 2021.

BYD announced its strategic collaboration with Pakistan partner Mega Conglomerate (Private) Limited in March.

Chinese giant BYD partners with HUBCO subsidiary to introduce EVs in Pakistan

Facing runaway inflation, households in Pakistan have increasingly been looking at alternatives to lower their burden.

Solar energy adoption is already on the rise, and a transition to electric is also being pushed with the entry of different companies.

However, experts believe that a lack of charging infrastructure, power tariffs, price points of different vehicles, and a general unwillingness to adopt a new technology will play on the minds of both companies and consumers.