Pakistan Commences Car Exports to African Markets

PAMA disclosed on October 11 that car sales in Pakistan surged by 10% in September.

Master Changan Motors, a Pakistani-Chinese joint venture, has initiated exports of its Oshan X7 mid-size crossover to Kenya. Containers filled with Oshan X7 vehicles have been observed in Karachi en route to the port.

Though the company hasn’t officially announced its export plan, it is anticipated to do so during a ceremony at its Karachi plant on October 12.

In the past, Changan Pakistan CEO Danial Malik expressed the company’s intention to export right-hand drive vehicles designed for Pakistan to other regions. Initially, the parent company produced left-hand drive vehicles for its domestic market.

Danial Malik also stated that Pakistan-assembled Changan vehicles would be distributed to South Africa, Malaysia, Indonesia, and other countries where right-hand drive vehicles are standard.

This development occurs at a time when Pakistan faces significant economic challenges, including high inflation and elevated business operating costs. Record high interest rates are contributing to reduced car demand.

Moreover, car prices in Pakistan have markedly risen, further burdening financially stressed consumers. The government has been encouraging the auto sector, which heavily relies on imported materials, to enhance exports. The initial goal was to achieve 2% of total imports, a target unmet in FY23.

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

While the short-term boost in car sales in Pakistan is attributed to better access to raw materials, the year-on-year data indicates a significant 26% sales decrease for the same period.

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