While the Pakistan Stock Exchange (PSX) has taken some time to cool off over the course of the last one week after a long and successful rally in the last one month, one company that continues making positive gains is Gandhara Automobiles Limited (GAL).
The company has gained more than 53% in value over the course of the last one month. Starting at a share price of Rs 260 on December 19th, the closing bell on Thursday saw GAL selling at Rs 398, down from 406 on Wednesday, the company’s highest ever share price.
Company Background:
Gandhara Automobiles Limited (GAL) has carved out a distinctive place in Pakistan’s automotive landscape, tracing its roots back to the 1980s. Initially emerging as a pivotal player in the commercial vehicle segment, GAL earned recognition for its partnership with Nissan, assembling and distributing an array of passenger cars, SUVs, and light commercial vehicles. Models like the Nissan Sunny sedan and the Cabstar pickups became household names during the 1990s and early 2000s, reflecting GAL’s role in shaping the local market.
However, as market dynamics evolved, Nissan’s presence in Pakistan weaned, leading to the gradual dissolution of its partnership with GAL. The company faced a challenging transition period but demonstrated resilience. GAL then shifted focus to commercial vehicles, collaborating with UD Trucks—a renowned global brand under the Volvo Group—and establishing itself as a leading provider of heavy-duty and medium-duty trucks. This shift only stabilised its operations and also reinforced its reputation for reliability in the logistics sector.
In recent years, GAL has seen a turnaround. It has strategically diversified its portfolio, stepping into the competitive passenger car market once again through a joint venture with Chery Automobile Co. Ltd. The launch of Chery’s Tiggo series SUVs has been met with a strong response. Simultaneously, its collaboration with JAC Motors has bolstered its standing in the light commercial vehicle space, further solidifying its diverse offerings. GAL also has long-standing partnerships with global automotive giants such as Isuzu.
By focusing on strategic partnerships, investing in assembly infrastructure, and capitalising on government incentives under the Auto Development Policy (ADP) 2016-2021, GAL has positioned itself as a frontrunner in both passenger and commercial vehicle segments.
Recent Success
The company’s recent success, as suggested by analysts comes on the back of an overwhelming response for the company’s recently launched JAC T9 Hunter.
Priced at Rs. 9.75 million, the T9 Hunter combines luxury, functionality, and robust performance, quickly garnering overwhelming demand. So much so that JAC motors had to close the booking for the vehicle.
A rear design inspired by American trucks and certain uncommon luxuries that have not been seen in pickups in Pakistan, has landed the T9 a unique place in the market. In its segment, the T9 is not only a unique vehicle but also beats the competition in pricing by a long margin. In comparison to T9 hunter, all competitors be it Toyota Hilux or another one of Gandhara’s partnered cars Isuzu D-max, sell for a premium. Toyota Hilux Rocco, the cheapest competitor also retails at an ex-factory price of Rs million, at least Rs 27 lacs more than the T9.
Another reason for Gandhara’s anticipated success is centred in Isuzu’s upcoming new-generation Isuzu D-Max facelift. This highly anticipated launch is expected in March, with bookings reportedly opening next month. The facelifted D-Max, a global success in markets like Thailand, promises a striking combination of power, design, and modern features.
