Auto market seen doubling in next 5 years

KARACHI: Pakistan’s auto market demand is likely to double from 300,000 units to 650,000 units in five years as a result of rapid digital transformations in the country’s economy coupled with a growing young population, a Chinese automaker said on Wednesday.

“The recent population trend shows around 10 million young males are expected to become independent earners in just half a decade,” said an official of Master Changan Motors Limited (MCML) during the company’s first vendor conference.

The conference that was held at the company’s plant in the metropolis is also the first ever such event conducted by any new entrant in Pakistan’s automotive industry.

“The expected outcome of this population change is a speedy growth in the automotive sector that will most likely create a demand of another 350,000 units and at least 10,000 jobs by 2023 in the industry.”

Master Changan Motors Limited is a joint venture with the Chinese state-owned company, ‘Changan Automobile’. Their investment has crossed over $136 million, the biggest investment by a Chinese OEM in Pakistan.

Their plant capacity has increased from 30,000 units to 50,000 units per annum (more than 66 percent increase) in a short span of time.

Chairman Engineering Development Board (EDB) Almas Hyder was the chief guest of the event.

Speaking to the participants, Hyders said now localisation had become crucial for the survival of all new entrants in Pakistan.

“When the government will withdraw the incentives currently being offered to the new entrants under the Auto Policy, their sustainability will determine their future.” Chairman EDB also hinted at the government plans to offer special financing schemes for the young generation to be able to afford entry-level vehicles, and that the new auto policy would specially incentivise exports of parts and vehicles from Pakistan to the world market.