Karachi, December 5, 2024 – Hub Power Company Limited (HUBCO) has entered into a significant strategic partnership with Mega Conglomerate (Private) Limited (MCPL) by signing a shareholders’ agreement. The development was formally disclosed in a notice to the Pakistan Stock Exchange (PSX).
The agreement, executed by Hub Power Holding Limited (HPHL), a wholly-owned subsidiary of HUBCO, grants MCPL a 50% stake in Mega Motor Company (Private) Limited. As a result, HUBCO will also hold a 50% share in the venture. This collaboration positions both companies to capitalize on Pakistan’s growing interest in electric vehicles (EVs) and sustainable transportation.
Mega Motor Company has already secured critical agreements to advance its operations in Pakistan. The firm has a supply and manufacturing agreement, as well as a technical license agreement, with BYD Auto Industry, a global leader in electric vehicle production. Earlier in June 2024, Mega Motors finalized a distribution agreement with BYD to introduce and market its vehicles in Pakistan.
BYD, a publicly traded Chinese multinational and the largest EV manufacturer in the world, is renowned for its innovation and market dominance. In 2023, BYD recorded a remarkable 73% year-on-year growth in battery-electric vehicle (BEV) sales, delivering 1.57 million units, alongside 1.44 million plug-in hybrid vehicles. This robust performance underscores BYD’s potential to transform Pakistan’s automotive landscape.
Market analysts at Arif Habib Limited have assessed the potential financial impact of this collaboration on HUBCO. Assuming an average vehicle price of PKR 11.1 million per unit and 10% net margins, HUBCO’s earnings per share (EPS) could increase by PKR 2.1 to PKR 4.3 annually, based on projected sales volumes of 5,000 to 10,000 cars.
This partnership signals HUBCO’s diversification into the automotive sector, leveraging the global expertise of BYD and the local market acumen of MCPL. As Pakistan moves toward embracing electric mobility, HUBCO and MCPL’s joint efforts could play a pivotal role in shaping the future of sustainable transportation in the region.