Pakistani-Chinese joint venture exports cars to Africa

Master Changan Motors, a collaboration between Pakistan and China, has initiated the export of their mid-size crossover, the Oshan X7, to Kenya. Shipping containers loaded with Oshan X7 vehicles have been observed in Karachi, en route to the port.

While the company has not yet made an official announcement regarding their export plans, it is anticipated that they will unveil these intentions during an event at their Karachi plant scheduled for October 12.

Previously, Changan Pakistan CEO Danial Malik expressed their aim to export right-hand drive vehicles, which have been specifically tailored for the Pakistani market, to other regions.

This development unfolds against the backdrop of significant economic challenges in Pakistan, including high inflation and increased business costs. The record-high interest rates have further impacted the demand for automobiles. Additionally, car prices in Pakistan have risen significantly, placing a burden on consumers.

The government has been actively promoting the auto sector, which heavily relies on imported materials, to boost exports. The initial target was to achieve 2% of total imports, a goal that was not realized in the fiscal year 2023.

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

In addition, the Pakistan Automotive Manufacturers Association (PAMA) reported a 10% increase in car sales in Pakistan for September compared to the previous month, with a total of 8,312 units sold.

However, despite this short-term boost attributed to improved access to raw materials, year-on-year statistics reveal a substantial 26% decline in sales for the same period.

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