Changan Pakistan set to export its vehicles to Kenya

Auto company Master Changan Motors Ltd, a joint venture between China’s Changan and Master Motors of Pakistan, has started export of its mid-size crossover Oshan X7 to Kenya, it was reliably learnt on Wednesday.

Containers have also been spotted in Karachi, which are taking Oshan X7 cars from the company’s Karachi plant towards the port.

Sources privy to the matter confirmed that a significant number – in double digits – of Oshan X7 SUV units will be exported to the African nation.

The development, confirmed to Business Recorder, is currently under wraps since the company is due to officially announce its export plan during a ceremony at its plant in Karachi on Thursday (October 12).

In the past, Changan Pakistan CEO Danial Malik has been vocal about the company’s plan to export right-hand drive vehicles designed for Pakistan to other regions. The parent company originally made left-hand drive vehicles for its domestic market.

Danial had also previously said that Changan’s Pakistan-assembled vehicles produced in the country would be sold to distributors in South Africa, Malaysia, Indonesia and others that have predominantly right-hand drive vehicles.

The development also comes at a time when Pakistan is facing severe economic distress in the form of runaway inflation, and high costs of doing business.

Interest rates are currently at a record high, pushing down demand for cars as well.

Meanwhile, car prices in Pakistan have also significantly increased, pinching further the pockets of troubled consumers.

The government has been pushing the auto sector, highly dependent on imported material, to increase their exports – with the initial target having been set at 2% of total imports. This target, however, remained unachieved in FY23.