Pakistani automaker makes history with first export of SUVs to Kenya

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Updated 13 October 2023
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Pakistani automaker makes history with first export of SUVs to Kenya

Pakistani automaker makes history with first export of SUVs to Kenya
  • Car sales in Pakistan dropped by 26 percent in September due to depreciation of national currency, high taxes
  • The company says export is possible but not feasible for long under the current economic circumstances

KARACHI: In a groundbreaking development for Pakistan’s automobile industry, Master Changan Motors Limited (MCML) dispatched its inaugural shipment of 14 locally-manufactured Oshan X7 vehicles, valued at approximately $250,000, to Kenya on Thursday.

A joint venture between China’s Changan International and Pakistan’s Master Motors, the company has become the country’s first “volume exporter” of SUVs to an international market. Its management confirmed the vehicles exported to Kenya would also be marketed in Tanzania.

“This is a historic moment because nobody has ever done this before and we are taking the first step to prove that [automobile] exports are possible from Pakistan,” Danial Malik, CEO of Master Changan, told Arab News at an event to mark the beginning of the export process at the company’s manufacturing facility in Bin Qasim Industrial Zone in Karachi.

“Our plant here in Pakistan is the only right-hand drive manufacturing unit of Changan globally,” he continued. “So, we are proud to be part of Changan’s global supply chain to produce and then export righthand drive vehicles from the country.”

Malik informed that Kenya and Tanzania were among several countries where Master Changan Motors planned to make its mark during its quest to expand its exports.

“We are taking our next major step to achieve our vision of making Master Changan a part of Changan’s global vehicle supply chain under the Vast Ocean Plan while putting Pakistan on the map by producing and exporting high quality vehicles to the world,” he said, referring to Changan International’s initiative to increase its overseas production capacity.

Changan Automobile plans to invest $20 billion in the overseas market while focusing on intelligent, low-carbon core technology. The company plans to increase its international footprint by entering 90 percent of the global market by 2030.

Pakistan’s automobile industry currently contributes 2.8 percent to its GDP and around Rs30 billion to the national exchequer in terms of annual taxes and duties. It has also been facing serious challenges due to rising dollar-rupee disparity and high costs of doing business which have led to increasing automobile prices in the country.

The car sales in Pakistan witnessed a drastic year-on-year decline of 26 percent in September 2023. However, there was a 10 percent month-on-month increase, according to the Pakistan Automotive Manufacturers Association (PAMA) that released fresh data on Wednesday.

Asked about the future of exports under the current economic situation, Malik ruled out its feasibility in the longer run.

“In the current situation, would I say exports are feasible in the long term? No. But it’s the first step in the right direction,” he said, adding his company had the added advantage of localized auto part manufacturing along with a solar powered plant.

However, he maintained the export of locally manufactured vehicles completely depended on the government’s policies to promote and incentivize the automobile industry.