Punjab is poised to see a fresh wave of industrial investment as China’s Letin Auto Group plans to establish a small electric vehicle (EV) manufacturing facility in the province.
A 15-member delegation led by General Manager Xu Zhen met with Punjab’s Minister for Industries and Commerce, Chaudhry Shafay Hussain, in Lahore to discuss the project and available incentives. The minister assured full support from the provincial government, highlighting benefits including a 10-year income tax holiday and duty-free import of machinery for plants in Special Economic Zones.
“New investment in the province is not only strengthening the economy but also creating employment opportunities for thousands of people,” Hussain said, adding that Punjab was fast becoming a preferred destination for foreign industrialists. He emphasised the government’s focus on promoting EVs, aiming for Punjab to play a leading role in the country’s clean mobility transition.
In 2023, Letin Auto—trading as Levdeo Automobile Group—filed for bankruptcy in China and completed its reorganisation in 2024. Auto sector experts suggest the company may be relocating to Pakistan as a base for local sales and exports, taking advantage of competitive incentives and the country’s low US tariff of 19%.
Letin Auto joins a growing list of Chinese EV makers entering Pakistan, including BYD, Changan, and British brand MG, with others exploring local assembly and production. Industry analysts say this reflects rising confidence in Pakistan’s EV sector, which remains nascent but offers significant potential due to high fuel costs and government incentives.
Existing auto players are watching closely. A Japanese-origin car assembler admitted, “This means we cannot sit idle anymore. We have to accelerate our EV plans and bring affordable models to the market.” Another executive noted that competitively priced Chinese EVs could quickly gain market share, benefiting customers in the long run.
Local companies are also preparing. A senior Hyundai Pakistan official said, “Globally, Hyundai is moving aggressively towards electric mobility and Pakistan will not be left behind. The arrival of new Chinese players will push us to bring our EV technology here sooner.”
Analysts believe this surge of competition will reshape the local auto industry, forcing firms to move beyond conventional combustion vehicles. EV enthusiasts see a positive impact: Salman Ali from Lahore said, “Affordable small EVs could be a game changer. With fuel prices rising every month, competitive Chinese EVs could give the middle class a real chance to switch to cleaner mobility.”
Experts add that Pakistan’s EV policy, with reduced customs duties and favourable tariffs, has already boosted imports, while local assembly and manufacturing could strengthen the domestic supply chain, including battery and component industries. For Punjab, the benefits include jobs, technology transfer, and a stronger industrial base, while consumers gain more choices and local assemblers face intensified competition.
“Chinese companies don’t just bring cars, they bring disruption. Those who adapt will survive, those who don’t will be left behind,” said the Japanese auto company official. Analysts note that decades of limited choices are giving way to an increasingly competitive market, redefining how Pakistanis buy and use cars.
