Tag: automotive market

  • Pakistan expected to export cars to Kenya

    Pakistan expected to export cars to Kenya

    Master Changan Motors, a noteworthy Pakistani-Chinese collaboration, has initiated the export of its Oshan X7 mid-size crossover to Kenya.

    The sight of containers laden with Oshan X7 vehicles en route to the port in Karachi has confirmed this export venture.

    Reliable sources affirm that a substantial quantity of Oshan X7 SUVs will soon grace Kenyan roads.

    While the official announcement of this export endeavour is yet to be made, it is anticipated to be unveiled at a ceremony scheduled for October 12, hosted at their Karachi manufacturing facility.

    In the past, Changan Pakistan’s CEO, Danial Malik, articulated the company’s intention to export right-hand drive vehicles initially designed for the Pakistani market to various other regions.

    Historically, the parent company produced left-hand drive vehicles exclusively for its domestic clientele.

    Danial Malik also emphasised that Changan’s Pakistan-assembled vehicles would find their way to distributors in South Africa, Malaysia, Indonesia, and other countries where right-hand drive vehicles are customary.

    This development unfolds against a backdrop of considerable economic challenges confronting Pakistan, including soaring inflation and the burdensome cost of conducting business. Exacerbating the situation, interest rates are presently at historic highs, resulting in decreased demand for automobiles.

    Furthermore, car prices within Pakistan have surged significantly, amplifying the financial strain on hard-pressed consumers.

    In response, the government has been strongly encouraging the automotive sector, which is heavily reliant on imported materials, to bolster its exports. The initial objective was to achieve 2 per cent of the total imports, a target unmet in FY23.

    According to Samaa, in May 2022, Pakistan marked a milestone by exporting its first vehicle crafted by Master Changan Motors under the newly implemented Auto Industry Development and Export Policy (AIDEP 2021-26). Notably, Pakistan stands as the sole country outside China to manufacture the latest Changan Oshan X7 model.

    Concurrently, the Pakistan Automotive Manufacturers Association (PAMA) disclosed on October 11 that car sales in Pakistan had risen by 10 per cent in September compared to the preceding month, with a total of 8,312 units sold. 

    Nevertheless, this apparent short-term upturn can be attributed to improved access to raw materials, whereas the year-on-year data indicates a substantial 26 per cent decrease in sales for the corresponding period.

  • Rawalpindi man lists nearly 30-year-old Honda Civic for sale at Rs1.5 million, says ‘it’s worth it’

    Rawalpindi man lists nearly 30-year-old Honda Civic for sale at Rs1.5 million, says ‘it’s worth it’

    With the rising prices of new cars rendering them unaffordable for many, even owners of older vehicles have begun to demand surprisingly high prices for their decades-old vehicles. In Rawalpindi, a seller recently posted an advertisement on the online buying and selling platform OLX Pakistan, listing a basic 1995 manual Honda Civic EXI at a staggering price of Rs1.5 million.

    The Current contacted him to ask if the price was a mistake. He confidently said it wasn’t and truly thinks his well-kept car is worth the Rs1.5 million price. He’s received many offers and a lot of interest in his nearly 30-year-old car. He also mentioned that he’s the third owner of this 1995 Honda Civic.

    It is noteworthy that a mere two years ago, cars of the same model year were being listed on online marketplaces for a significantly lower price, less than Rs600,000. However, the present scenario witnesses a surge in the asking price for these vehicles.

    This trend is not exclusive to a particular model but rather extends to nearly all used cars, given that even the cheapest car from Pak Suzuki Motors, the Suzuki Alto, now commands a price of nearly Rs3 million. Consequently, a considerable number of individuals, constrained by budgetary limitations, opt for pre-owned cars.

    While the price might raise eyebrows for a car of this kind, die-hard Honda Civic enthusiasts might willingly pay this hefty amount. That’s especially true if the car’s condition lives up to the seller’s claims.

    Given its popularity among Pakistan’s racing community and its appeal to those wanting to build a car from scratch, the price could find its justified niche.