Tuesday, June 3 2025

In a dramatic twist for Pakistan’s electric vehicle (EV) market, two rival companies have launched the same Chinese electric car within weeks, igniting a public dispute over exclusive distribution rights. The compact EV, originally manufactured by Dongfeng, China’s state-owned automaker, first appeared in February 2025 under GUGO Motors as the “Gugo Box”. Then, in early April, it resurfaced under a new launch by Chawla Group as the “Dongfeng Box”, backed by claims of formal distribution rights.

Who Owns the Rights?

Both companies argue they have the legal authority to sell the car in Pakistan. GUGO Motors insists it holds valid authorization to sell Dongfeng EVs until October 2025 and that its presence in the market with vehicles already delivered proves its legitimacy. However, it has not provided documentation to confirm exclusive rights.

In contrast, Chawla Group claims formal distributor status, supported by documentary proof, technical support, and direct engagement with Dongfeng’s international operations. They are also operating under the Dongfeng brand name and offering after-sales support, training, and even loaner vehicles, a rarity in the EV market.

Dongfeng’s Position and Market Implications

Syed Zakir Ali, Dongfeng’s official representative in Pakistan, sided firmly with Chawla Group, categorically stating that GUGO is not an authorized partner and its vehicles were sourced through third-party imports without Dongfeng’s consent.

This statement casts serious doubt on GUGO’s claim. Moreover, Dongfeng has reportedly cut off ties with the Chinese exporter that provided vehicles to GUGO, effectively closing the door for further supplies.

Price Wars and Product Lineup

  • GUGO Box:
    • E1: PKR 6.7 million
    • E2: PKR 7.3 million
    • Premium Variant: PKR 7.7 million
  • Chawla’s Dongfeng Box:
    • Flagship Variant: PKR 6.4 million
    • Luxury Variant: PKR 6.8 million

Both vehicles target urban consumers seeking affordable EV solutions, but the Chawla Group’s pricing is lower, making it more competitive. The group also has plans to launch two more Dongfeng EVs this year, signaling a broader commitment to Pakistan’s EV market.

The Bigger Picture

The clash reveals the growing pains of Pakistan’s nascent EV industry, where formal partnerships, regulatory clarity, and after-sales infrastructure will play defining roles. With the government encouraging EV adoption and fuel prices soaring, the stakes are high for distributors vying to secure first-mover advantages in an untapped market.

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