Ghandhara – Chery Partnership Ends in Pakistan – Key Details

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Ghandhara Automobiles Limited (GAL) has officially announced the expiration of its two agreements with Chery Automobile Co., Limited. These agreements—the Distribution Agreement and KD Supply Agreement—established GAL as the exclusive distributor and representative of Chery vehicles in Pakistan.

Ghandhara – Chery Partnership Ends

“Ghandhara Automobiles Limited had entered into two agreements, namely the Distribution Agreement and KD Supply Agreement, respectively, with Chery Automobile Co., Limited, pursuant to which GAL had been appointed as the exclusive distributor and authorized 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,” the company said in a stock filing today.

“As per the understanding between both parties, GAL will continue to sell Chery Brand vehicles and provide after-sale services to its customers in the transition period“, stock filing further informed.

This move highlights the company’s commitment to maintaining customer satisfaction and a seamless shift in operations.

From a financial perspective, the impact of Chery’s departure on GAL appears minimal. For fiscal year 2025 (FY25), the consolidated Earnings Per Share (EPS) is projected at Rs 40, with the Chery SUV contributing only Rs 1-1.5 to this figure—making it relatively insignificant to GAL’s overall performance.

To counterbalance the loss of Chery, GAL has already introduced the T9 Hunter, a promising addition to its lineup. If T9 Hunter sales exceed 2,500 units in FY25, it is anticipated to add Rs 20-24 to the EPS, boosting the consolidated EPS to an estimated Rs 54-58.50.

What Next For Chery & GAL?

As of today, both agreements have reached their conclusion, marking the end of this partnership. And, as per our credible sources, Cherry Automobiles is all set to collaborate with the prominent local car maker Lucky Motors, which is already bringing Kia and Peugeot vehicles to Pakistan. Chery and GAL has not disclosed it officially but market reports also reported same.

On other side, GAL is also focusing on its future endeavors. The company has recently launched a pickup truck dubbed T9 Hunter which signals the company’s intent to drive growth and profitability while ensuring its customers experience minimal disruption. 

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1 Comment
  1. Waqas says

    Let’s hope to see a similar move from Proton

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