Chery and Ghandhara's partnership deal end in Pakistan

Ghandhara Automobiles Limited had been appointed as exclusive distributor and authorised representative of Chery Automobiles Co., Limited in Pakistan
An undated image of  Ghandhara Automobiles (left) and Chery Automobiles (right) logos. — Ghandhara/Chery/Canva
An undated image of  Ghandhara Automobiles (left) and Chery Automobiles (right) logos. — Ghandhara/Chery/Canva

Ghandhara Automobiles Limited (GAL) ended its partnership with Chery Automobile Co., Limited today. This move hints that Chery is looking to partner with a financially stronger partner to establish its presence in Pakistan’s competitive automobile market.

Earlier, it was reported that Chery’s decision to end its partnership with GAL appears to be a calculated step to position itself more effectively in Pakistan’s growing automotive industry.

In a stock filing today, the company stated: “Ghandhara Automobiles Limited (GAL) had entered into two agreements namely the Distribution Agreement and KD Supply Agreement respectively with Chery Automobile Co., Limited under which GAL had been appointed as the exclusive distributor and authorised representative of Chery Automobiles Co., Limited in Pakistan.”

“It is brought to your knowledge that both of the aforesaid agreements are set to expire today. However, please note that both GAL and Chery Automobile Co., Limited continue to remain in negotiations to finalize a smooth transition,” Ghandhara added.

According to the understanding between both parties, GAL will continue to sell Chery brand vehicles and offer aftersales services to its customers during the transition period.