An upcoming Joint Venture between Pakistan and China, Master Changan Motors (MCM), plans turn its $136 million complete knock-down (CKD) assembly plant in Karachi into a hub of Exports for the Chinese right-hand-drive Auto Mobile to the regional countries.
Moreover, Master Changan Motors(MCM), is the only strategic Alliance where a Chinese automotive manufacturer has invested capital in the project whereas most Chinese Original Equipment Manufacturers (OEM) interested in exploring their chances in Pakistani market are preferring ‘technical cooperation’ with their local partners.
Furthermore, it was confirmed back in 2017 as a 70:30 joint-venture between Pakistan’s Master Group and China’s Changan Motors, MCM has the endurance to assemble 30,000 units a year.
Danial Malik, MCM CEO has told his correspondent in an interview that “Ours is the first green-field project launched under the 2016/21 Auto Industry Development Policy under the umbrella of China-Pakistan Economic Corridor 2.0.”
Nabeel Hashmi, a leading auto vendor and exporter of auto parts from Lahore, stated that “The answer to the question of why Chinese automakers aren’t making equity investments in Pakistan can be found in the policies of the government.” Moreover, he added, “Under CPEC, our official focus has always been on the textile sector. We never tried to explore the possibility of cooperation with Chinese investors in the area of manufacturing capital goods.”
According to an engineering Development Board official, Chinese car companies are exploring the Pakistani market and would start investing capital in a big way here once they can wean away customers from the expensive Japanese and Korean models by offering them better quality vehicles and driving experience, and lower prices. Secondly, some Chinese OEMs may need to increase their CKD production capacity before entering Pakistan, he added.
MCM is also planning to start the production of Electric Auto Mobile Exports cars in Pakistan in accordance to the statement of CEO of the Company. He stated, “we would prepare our feasibility once the government takes a final decision on the demand of the Japanese manufacturers for the same incentives given in the recently approved EV policy for their hybrid cars. “If that happens, it will discourage adoption of the cleaner, most-efficient EV technology in the country. It will not be good for the internal combustion vehicles either,” he concluded.