Ghandhara Automobiles announces extension in distribution partnership with China’s Chery Automobile

In a significant development for Pakistan's automotive industry, Ghandhara Automobiles Limited (GAL) has disclosed that its distribution agreement with Chinese automaker Chery Automobile Co., Limited is undergoing a transition phase. The announcement, made through a statement to the Pakistan Stock Exchange, reveals that the existing agreements between the two companies expired on January 25, 2025, but negotiations for a smooth transition are ongoing.

GAL's Distribution Agreement and KD Supply Agreement with Chery Automobile Co., Limited have reached their termination date. Both companies are currently in talks to finalize the terms of a transition. During this transition period, GAL will maintain its role in selling Chery brand vehicles and providing after-sales services to customers in Pakistan.

This development marks a pivotal moment in the partnership between the Pakistani and Chinese automotive entities, potentially reshaping the landscape of Pakistan's car market.

The collaboration between Ghandhara Automobiles and Chery Automobile has been a notable example of international partnerships in Pakistan's growing automotive industry. As the exclusive distributor and authorized representative of Chery in Pakistan, GAL has played a crucial role in introducing Chinese automotive technology to Pakistani consumers.

The continuation of sales and services during the transition period suggests that both companies are committed to minimizing disruptions for customers and maintaining market presence. This approach is likely to reassure current Chery vehicle owners in Pakistan and potential buyers who may have been considering a purchase.