Press Release
VIS Upgrades Entity Rating of Master Changan Motors Limited
Karachi, April 09, 2026: VIS Credit Rating Company Limited (VIS) has upgraded the rating of Master Changan Motors Limited (‘MCML’ or ‘the Company’) from ‘A-/A2’ (A-/A Two) to ‘A/A1’ (Single A/A One). The medium to long term rating of ‘A’ signifies good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. The short-term rating of ‘A1’ denotes strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned rating has been changed to ‘Stable’ from ‘Positive’. Previous rating action was announced on January 31, 2025.
MCML is principally engaged in the assembly and progressive manufacturing and sale of pickups and vans and passenger cars. The assigned ratings incorporate MCML’s affiliation with experienced and sound sponsors - Changan Automobile Investment (Shenzhen) Corporation Limited (Changan) and Master Motor Corporation (Private) Limited (MMCL). Changan is one of China’s leading state-owned enterprises with international presence, while MMCL is part of well-diversified Master Group of Companies which has presence in mattresses & upholstery, home fashion, textile, chemical, power, automobile and auto part sectors.
The Pakistani automotive landscape is undergoing a structural transformation characterized by intensified competition and a shift in consumer preferences towards feature rich, high-tech vehicles. During FY25 and on-going fiscal year, the industry exhibited strong volumetric recovery, supported by an improving macroeconomic environment and a decline in the central bank’s policy rate, which also facilitated growth in auto financing. With the expiry of current auto-policy, a significant classification is anticipated for Hybrid Electric Vehicles (HEVs), Plug-in Hybrids (PHEVs) with an upward revision in sales tax from the current concessionary rates (8.5% - 12.75%) toward the standard 18%. In contrast, the taxation regime for NEVs is projected to remain subsidized, maintaining a 1% sales tax on locally assembled units and a 1% customs duty on EV specific components to accelerate adoption.
The rating reflects MCML’s strengthening market position, supported by growth in business volumes and market share, which increased to 7.6% in FY25 from 4.9% in FY24. This growth was driven by improving macroeconomic conditions, higher consumer demand, and enhanced sales and marketing initiatives. Momentum has continued into the current fiscal year, further supported by the successful launch of the Deepal brand. The assigned rating is underpinned by robust sales and profitability growth, alongside healthy margins, and a strong capitalization and coverage profile. However, the ratings remain constrained by governance considerations, reflecting room for improvement in the overall governance framework.
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Corporates:
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale:
https://docs.vis.com.pk/docs/VISRatingScales.pdf