Karachi, May 30, 2025 – Chinese electric vehicle (EV) giant BYD has raised strong objections to the Pakistani government’s proposed policy to permit the import of up to five-year-old used vehicles, warning it could derail the country’s budding New Energy Vehicle (NEV) market, harm the environment, and worsen foreign exchange pressure.

At a media briefing held at BYD’s newly launched experience center in Karachi, Danish Khaliq, Vice President for Strategy and Sales, said such a policy could:

• Undermine local manufacturers, especially new entrants in the EV space.

• Flood the market with up to 60% depreciated oil-run used cars, available cheaper due to Pakistan’s 1% per month depreciation allowance on imported second-hand vehicles.

• Increase reliance on petroleum imports, putting further strain on the economy.

“This is not good for a price-sensitive market like Pakistan. It could hurt both the emerging EV market and existing Japanese automakers still dominant in the internal combustion engine (ICE) segment,” said Khaliq.

BYD’s Policy Recommendations:

• Any duty reductions in the upcoming 2025-26 federal budget should apply exclusively to NEVs.

• ICE and NEVs should not be treated equally, to avoid adverse customer selection.

• Incentives should favor OEMs committed to local investment and aligned with Pakistan’s industrial and environmental goals.

Concerns Highlighted:

• Environmental risks posed by older oil-run cars.

• Negative impact on job creation in the local auto industry.

• Setback to achieving UN Sustainable Development Goals.

Currently, Pakistan allows the import of used vehicles up to three years old.

BYD’s Expansion in Pakistan:

• Recently launched two electric vehicle models in the local market.
• Partnered with Mega Motor Company, which is building an NEV manufacturing plant in Gharo, Sindh, with a 25,000 unit annual capacity, expected to be operational by next year.