Gandhara Issues Rs. 3 Billion Legal Notice to Master Group Over Chery Dispute in Pakistan

Gandhara Issues Rs. 3 Billion Legal Notice to Master Group Over Chery Dispute in Pakistan

Gandhara Industries has served a Rs. 3 billion defamation notice to Master Auto Engineering Pvt. Ltd. and Chery Automobile Co., Ltd. The notice comes after claims that neglected customers during its tenure as Chery’s distributor in Pakistan. The company rejected these allegations as “false, baseless, and defamatory,” emphasizing that it fulfilled all contractual obligations and continued providing support in good faith.

Background of the Dispute

Chery ended its partnership with Gandhara in May 2025 and appointed Master Group to launch hybrid and plug-in hybrid vehicles in Pakistan. Master Chery Pakistan alleged that Gandhara failed to meet obligations regarding after-sales service, warranty, and customer support.

Despite having no contractual responsibility for past customers, Master Group announced plans to provide after-sales service starting Q4 2025, triggering Gandhara’s legal action.

Gandhara Issues Rs. 3 Billion Legal Notice to Master Group Over Chery Dispute in Pakistan

Gandhara’s Response

In a legal notice dated September 5, 2025, emphasized that warranty obligations officially rest with Chery Automobile Co., Ltd., the manufacturer. The company reaffirmed that it had faithfully served its customers during its distribution period.

Legal Action and Demands

demanded that Master Group:

  • Retract its statements publicly
  • Issue a written clarification to customers and dealers
  • Compensate Gandhara for reputational and commercial damages estimated at Rs. 3 billion

Failure to comply within 10 days could result in civil and criminal proceedings under the Defamation Ordinance, 2002.

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Implications for Pakistan’s Automotive Sector

The dispute highlights the challenges of distributor transitions in Pakistan’s automotive market, especially regarding after-sales service and warranty obligations. It underscores the importance of clearly defined responsibilities to protect both customers and brand reputation. Such legal conflicts can impact consumer confidence and the overall credibility of the sector.

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