KARACHI — September 9, 2025 — Gandhara Industries has issued a defamation notice worth Rs. 3 billion against Master Auto Engineering Pvt. Ltd. and Chery Automobile Co., Ltd., China, escalating the dispute over Chery’s distributorship in Pakistan. The legal challenge comes after Master publicly accused Gandhara of neglecting customer obligations, according to a report by PakWheels.
How the Dispute Began
In May 2025, Chery Automobile, China’s largest global vehicle exporter, ended its partnership with Gandhara Industries and appointed Master Group as its new distributor in Pakistan. The move was seen as part of Chery’s global electrification strategy to introduce hybrids and plug-in hybrid EVs in Pakistan.
At the time, the transition appeared smooth, with little indication of conflict between the two parties.
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Master Group’s Claims
Last week, Master Chery Pakistan broke its silence, alleging that Gandhara had failed to meet its obligations regarding warranty, service, and after-sales support for Chery vehicles sold during its tenure.
Although it admitted having no contractual responsibility for past customers, Master announced it would “step in out of goodwill” to provide after-sales support beginning in Q4 2025.
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Gandhara’s Response: Legal Action
Gandhara responded with a strong rebuttal through its counsel, Saiduddin & Co., calling Master’s statements “false, baseless, and defamatory.”
According to the notice:
- Gandhara claimed it fulfilled all contractual obligations during its tenure, including sales, warranty, spare parts supply, and after-sales service.
- It emphasized that warranty responsibilities rested with Chery Automobile, not Gandhara, though it continued supporting customers in good faith.
- The company accused Master of spreading a “distorted narrative” that undermined Gandhara’s credibility and reputation.
The notice demanded Master retract its statements, issue a clarification, and compensate Gandhara with Rs. 3 billion in damages, warning of civil and criminal proceedings if not complied with within 10 days.
Contractual Clause Adds Complexity
A contractual clause suggests that Gandhara was required to handle after-sales and warranty obligations only until Chery officially appointed a new distributor — conditional on Chery providing spare parts.
This detail complicates Master’s accusations, as Gandhara argues its distributorship ended by efflux of time, not breach, while placing ultimate responsibility on Chery Automobile Co., Ltd.
Industry Impact and What’s at Stake
The legal battle risks eroding customer confidence in Chery’s brand and could influence the trajectory of EV adoption in Pakistan.
Industry analysts highlight three key risks:
- Growing doubts over warranty and after-sales reliability of Chinese brands.
- Damage to Chery’s market positioning during its second entry into Pakistan.
- Potential slowdown in the rollout of affordable EVs and hybrids, which Master aimed to spearhead.
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The Road Ahead
With Gandhara demanding retractions and Master reaffirming its role as Chery’s sole partner, the dispute may end up in court unless settled privately.
For now, customers and the auto industry await clarity as a high-stakes battle over legacy, credibility, and customer trust plays out.
