Master Changan Motors, a Pakistani-Chinese joint venture, has initiated the export of its Oshan X7 mid-size crossover to Kenya. Although an official announcement of the export plan is expected during an event at the Karachi plant on October 12, shipping containers carrying Oshan X7 vehicles have been observed en-route to the port in Karachi.
Changan Pakistan CEO Danial Malik previously expressed the company’s intention to export right-hand drive vehicles tailored for the Pakistani market to other regions. This marks a shift from the parent company’s initial focus on left-hand drive vehicles for the domestic market.
The move to export vehicles from Pakistan comes amid significant economic challenges in the country, including high inflation, elevated business costs, and record-high interest rates that have impacted car demand. Car prices in Pakistan have surged, placing a burden on consumers.
The government has been encouraging the auto sector to boost exports, aiming for 2% of total imports, a target that wasn’t met in fiscal year 2023.
In May 2022, Pakistan exported its first vehicle manufactured by Master Changan Motors under the Auto Industry Development and Export Policy (AIDEP 2021-26), making it the only country, besides China, to produce the latest model of Changan Oshan X7.
According to the Pakistan Automotive Manufacturers Association (PAMA), car sales in Pakistan increased by 10% in September compared to the previous month, reflecting better access to raw materials. However, year-on-year figures show a substantial 26% decline in sales for the same period.