Hubco plans to produce 50,000 electric vehicles annually

By Our Correspondent
October 01, 2024
Partly finished vehicles are seen at a manufacturing plant in this undated file photo. — APP/File
Partly finished vehicles are seen at a manufacturing plant in this undated file photo. — APP/File

KARACHI: Hub Power Company Limited (Hubco) has announced plans to establish a plant capable of producing 50,000 electric vehicles (EVs) annually, with 30-40 per cent of the output earmarked for export to Australia and Africa.

The company expects to launch 8-9 variants of completely knocked down (CKD) cars across different segments between December 2025 and March 2026.Hubco is poised to expand its footprint in both the energy and automotive sectors, signalling a strategic shift towards renewable energy and electric mobility.

During its annual general meeting (AGM) on Monday, the board revealed that Hubco had received two dividend payments totalling $150 million from the China Power Hub Generation Company (CPHGC) project for FY2024, with $69 million representing Hubco’s share. The CPHGC project, which has a total cost of $1.8 billion, has seen $600 million repaid so far, with five more years of payments remaining. Due to rising interest costs, the company’s priority is to repay its debt.

Addressing recent media reports, the board dismissed claims of ongoing negotiations between independent power producers (IPPs) and the government. It discussed the decommissioning of power plants, noting that once a facility reaches the end of its operational life, options such as selling or repurposing the plant for alternative uses are being considered.

Looking ahead, Hubco expects strong future cash flows, particularly from its auto segment, which is anticipated to significantly contribute to future dividends. The company also plans to enter the mining sector, with a focus on mineral exploration, particularly lithium, and the development of a battery manufacturing unit. The board further noted that preparations are underway to position the company for long-term demand for batteries.

Hubco is also considering increasing its shareholding in Sindh Engro Coal Mining Company (SECMC) from 8.0 per cent to 17 per cent, with the goal of gaining management control in the future.