Chery & Ghandhara Partnership Ends in PAK-Detailed Insig

Wajahat

24 Jan 2025

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Chery & Ghandhara Partnership Ends in PAK-Detailed Insig

The two key agreements between Ghandhara Automobiles Limited (GAL) and Chery Automobile Co., Limited have officially concluded. These agreements, namely the Distribution Agreement and KD Supply Agreement, had previously established GAL as the exclusive distributor of Chery vehicles in Pakistan.

Announcement of Agreement Expiration

Today, GAL issued a public statement revealing that both agreements have reached their expiration date. Although the agreements have expired, GAL confirmed that ongoing discussions with Chery are in progress to facilitate a smooth transition. The company emphasized that it will continue to market Chery branded vehicles and offer after-sales services during the transitional phase.

Minimal Impact on GAL’s Financial Outlook

**Regarding the financial implications of Chery’s departure, the effect is expected to be minimal for GAL. For the fiscal year 2025 (FY25), GAL has forecasted consolidated Earnings Per Share (EPS) of Rs 40. The contribution from Chery’s SUV sales is estimated at just Rs 1-1.5 per share, meaning the overall financial impact on GAL’s performance remains relatively minor.

Financial Forecast Table

Key Indicator	Projected Value	Impact from Chery
Consolidated EPS	Rs 40	Rs 1-1.5
EPS with T9 Hunter Sales	Rs 54-58.50	Significant Increase

To counterbalance this, GAL has launched the T9 Hunter, a new product expected to contribute significantly to EPS. If the T9 Hunter sales surpass 2,500 units in FY25, it could add between Rs 20-24 per share to EPS, raising the total consolidated EPS to an estimated Rs 54-58.50.

What’s Next for Chery & GAL?

With the termination of the agreement, Chery is expected to team up with Lucky Motors, a notable local manufacturer that already distributes Kia Cars Pakistan and Peugeot vehicles in Pakistan. Although GAL and Chery have not officially confirmed this, several market sources suggest this partnership is in the pipeline.

Meanwhile, GAL is actively working on expanding its own offerings. The launch of the T9 Hunter pickup truck underlines its strategy to drive both growth and customer retention during the shift away from Chery products.

Chery Ghandhara Partnership Ends Pakistan Automotive News Ghandhara Automobiles Chery Vehicles Automotive Industry Pakistan Car Market Business News

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