Karachi, September 9, 2025 — The tussle between Gandhara Industries and Master Group over the Chery automobile brand in Pakistan has taken a legal turn. Gandhara issues a defamation notice to Master Auto Engineering Pvt. Ltd. and Chery Automobile Co., Ltd., China.
How It Started: Chery’s Switch in Partners
In May 2025, Chery Automobile — China’s most prominent global vehicle exporter — ended its distribution partnership with Gandhara Industries and announced a new alliance with Master Group. The move was positioned as a strategic reset to bring hybrid and plug-in hybrid electric vehicles (PHEVs) to Pakistan, aligning with Chery’s global electrification push.
At the time, the transition appeared smooth, with both companies maintaining silence over operational handovers and customer obligations.
Master Group’s Assurance to Customers
Last week, however, Master Chery Pakistan broke the silence. In a public notice, it alleged that Gandhara had “failed to fulfill its contractual obligations” regarding service, warranty, and customer support for vehicles previously sold under its tenure.
While acknowledging that it had no contractual responsibility for past customers, Master declared that it would “step in out of goodwill” and begin providing after-sales service starting in Q4 2025. This statement was framed as a reassurance to Chery customers amid uncertainty.
Gandhara Hits Back: Legal Notice Issued
The message, however, triggered a sharp response from Gandhara. In its legal notice dated September 5, 2025, sent through its counsel, Saiduddin & Co., Gandhara termed Master’s statements as “false, baseless, and defamatory.”
According to the notice:
- Gandhara asserted that it had faithfully performed all contractual obligations during its tenure as Chery’s distributor, including sales, after-sales service, spare parts supply, and warranty claims (page 1).
- It emphasized that warranty obligations rested with Chery Automobile Co., Ltd., the manufacturer, and not with Gandhara, although Gandhara claims it nonetheless continued to provide support in good faith (pages 1–2).
- Gandhara strongly rejected Master’s claim that customers were left unsupported, calling it a “distorted narrative” that undermined its reputation for professionalism and credibility (page 2).
- The company accused Master of deliberately shifting blame, misleading the public, and causing reputational and commercial harm (pages 2–3).
Demand for Retraction and Rs. 3 Billion Compensation
Gandhara’s notice demanded that Master:
- Retract its “false and defamatory” statements.
- Issue a written clarification to customers and dealers.
- Compensate Gandhara for reputational and commercial damages, estimated at Rs. 3 billion, without prejudice to the right to claim higher damages (page 3).
The notice also warned that failure to comply within 10 days would leave Gandhara free to pursue civil and criminal proceedings for defamation, damages, and injunctions under the Defamation Ordinance, 2002 (pages 3–4).
Contractual Clause Surfaces
A contractual clause has also surfaced, stipulating that Gandhara (GNL) would continue to perform its after-sales and warranty obligations for Chery vehicles it sold until Chery officially appoints another distributor in Pakistan—provided Chery supplies sufficient spare parts to enable Gandhara to do so.
This detail potentially complicates the dispute. While Master accuses Gandhara of abandoning customers, the clause suggests Gandhara’s obligations were conditional and time-bound, lasting only until Chery formally handed the reins to a new distributor.
Gandhara, in its legal notice, has similarly argued that its distributorship expired by efflux of time, not by breach, and that warranty responsibilities ultimately rest with Chery Automobile Co. Ltd.
What’s at Stake for Chery in Pakistan
The escalating tussle has cast a shadow over Chery’s second attempt to establish itself in the Pakistani market. While Master Group aims to position itself as a long-term player in the EV and hybrid space, Gandhara is seeking to defend its legacy, credibility, and customer track record.
Industry analysts say the fallout could impact:
- Customer confidence in Chery’s after-sales and warranty support.
- Market perception of Chinese brands, which already face skepticism around continuity and support.
- Future EV adoption, as Chery was expected to spearhead affordable electrified vehicles in Pakistan under Master.
The Road Ahead
With Gandhara demanding retractions and compensation, and Master reaffirming its role as Chery’s sole partner in Pakistan, the conflict seems set for courtroom resolution unless both parties find a way to settle privately.
For now, Chery customers and the broader auto industry are left watching closely as a corporate battle over legacy, reputation, and customer trust unfolds.
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