Pakistan is set to begin trial exports of locally assembled vehicles to Bangladesh in September, marking a major step for the country's automotive export ambitions. Under an agreement signed with Bangladeshi business group RANCON, 100 vehicles will be shipped on a trial basis during 2026, with larger commercial exports expected from next year.

The broader agreement initially targets thousands of vehicles, with official projections indicating exports could reach 5,800 units over four years. The deal is expected to strengthen automotive cooperation and expand business ties between Pakistan and Bangladesh.

MG Pakistan shifts to CKD exports

Two models produced in Pakistan in partnership with China's SAIC Motor will be exported under the new arrangement. According to MG JW Automobile Pakistan CEO Jianqiang Shao, the models were previously supplied to Bangladesh from China as completely built units.

Following discussions with SAIC Motor, the company secured support to shift the business model toward CKD exports from Pakistan. This could help the Bangladeshi distributor reduce import duties while creating a sustainable export opportunity for Pakistan.

Pakistan targets automotive export growth

MG Pakistan will provide technical guidance covering vehicle assembly, general assembly and quality control. A Pakistani engineering team will also travel to Bangladesh to provide technical and engineering support.

Shao said Pakistan's competitive production costs and skilled workforce could help expand automotive exports in the future. The company believes the Bangladesh deal could become a foundation for exporting not only vehicles but also technology and engineering services.