Punjab is gearing up for another boost in industrial investment as China’s Letin Auto Group has announced plans to set up a small-scale electric vehicle (EV) manufacturing plant in the province.
A 15-member delegation of the company, led by General Manager Xu Zhen, met Punjab’s Minister for Industries and Commerce Chaudhry Shafay Hussain in Lahore. During the meeting, the delegation explored possible incentives and support measures, while the minister assured them of the government’s full backing.
Hussain highlighted Punjab’s investor-friendly policies, including a 10-year income tax holiday and duty-free machinery imports for projects set up in Special Economic Zones. “Punjab is becoming a preferred destination for international investors. New projects not only strengthen the economy but also generate thousands of jobs,” he said, stressing that the government wants Punjab to lead Pakistan’s clean mobility transition.
Letin Auto, which underwent bankruptcy reorganisation in China in 2024 under its trading name Levdeo Automobile Group, may now be eyeing Pakistan as a new base for sales and exports. With reduced U.S. tariffs on Pakistani exports and attractive local incentives, industry insiders believe the company sees strong growth potential in the country.
The EV market in Pakistan is gaining momentum. Brands like BYD, Changan, and MG are already present, while Hyundai and other automakers are preparing to introduce their own EVs. Analysts note that Chinese companies are moving fast to capture the market with affordable options, putting pressure on existing players.
“Chinese automakers bring speed, affordability, and disruption,” said a senior executive of a Japanese-origin company. “We can’t sit idle anymore. Competition will force us to accelerate our EV plans.”
Consumers, too, are welcoming the change. With fuel costs rising, EV enthusiasts see Chinese models as a game-changer for middle-class buyers seeking affordable, cleaner alternatives.
Experts add that the government’s EV policy, with reduced customs duties on EV parts and favorable tariffs, has laid the foundation for local assembly. If companies like Letin Auto move ahead with production, it could spark a full ecosystem of component suppliers, battery producers, and technology partners.
For Punjab, the benefits are clear: more jobs, new technology, and a stronger industrial base. For customers, it means more choices on the showroom floor. And for existing auto giants, it signals a race to adapt—or risk being left behind.
