Thursday, May 30, 2024

Pakistan Starts Export of Cars to Africa

Master Changan Motors, a Pakistani-Chinese joint venture, has commenced the export of its Oshan X7 mid-size crossover to Kenya.

Shipping containers carrying Oshan X7 vehicles have been spotted in Karachi, en route to the port.

Although the company hasn’t officially announced its export plan, it is expected to do so during an event at its Karachi plant on October 12.

Previously, Changan Pakistan CEO Danial Malik stated that the company intends to export right-hand drive vehicles, specifically designed for Pakistan, to other regions.

Changan’s parent company initially manufactured left-hand drive vehicles for the domestic market.

Danial also mentioned that Pakistan-assembled vehicles by Changan would be sold to distributors in countries such as South Africa, Malaysia, Indonesia, and other places where right-hand drive vehicles are customary.

This development comes at a time when Pakistan is facing significant economic challenges, including high inflation and elevated business costs. Interest rates are at record levels, further impacting the demand for cars. Additionally, car prices in Pakistan have substantially increased, burdening consumers.

The government has been encouraging the auto sector, which relies heavily on imported materials, to boost exports. The initial target was to achieve 2% of total imports, but this goal was not met in the fiscal year 2023.

In May 2022, Pakistan exported its first vehicle manufactured by Master Changan Motors under the new Auto Industry Development and Export Policy (AIDEP 2021-26). Pakistan was the only country besides China to produce the latest model of Changan Oshan X7.

Furthermore, the Pakistan Automotive Manufacturers Association (PAMA) reported that car sales in Pakistan saw a 10% increase in September compared to the previous month, with a total of 8,312 units sold. Although this short-term boost is attributed to improved access to raw materials, year-on-year statistics indicate a significant 26% decline in sales for the same period.

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