Punjab is set to welcome another major Chinese investor as Letin Auto Group has confirmed plans to establish a small electric vehicle (EV) plant in the province. The announcement comes at a time when Pakistan’s EV market is opening up rapidly, driven by rising fuel prices and favorable government policies.
The company’s 15-member delegation, led by General Manager Xu Zhen, met Punjab’s Minister for Industries and Commerce Chaudhry Shafay Hussain in Lahore. The minister assured full government support, citing lucrative incentives such as a decade-long income tax holiday and duty-free import of machinery in Special Economic Zones.
Hussain said Punjab was becoming a hotspot for foreign industrialists. “Every new project adds to economic strength and creates thousands of jobs. We want Punjab to lead in Pakistan’s shift toward electric mobility,” he said.
Letin Auto, previously known as Levdeo Automobile Group, faced bankruptcy in China in 2023 but completed reorganisation in 2024. Analysts believe the company now sees Pakistan as an attractive hub for EV manufacturing and exports, given the province’s investment climate and the U.S.’s comparatively low 19% tariff on Pakistani goods.
Chinese EV brands like BYD, Changan, and MG are already active in Pakistan, while other automakers—including Hyundai—are preparing their entry into the EV market. Industry insiders believe Letin Auto’s arrival will intensify competition and force established companies to speed up their electrification plans.
“This will shake up the market,” admitted an official from a Japanese car assembler. “We can’t ignore it anymore. If Chinese EVs come at competitive prices, they could capture significant market share.”
Car enthusiasts also see it as a positive shift. “With petrol prices going up every month, people need alternatives,” said Salman Ali, an EV enthusiast from Lahore. “Affordable EVs could finally give the middle class a chance to switch to clean mobility.”
Experts say that Pakistan’s EV policy—offering reduced customs duties and favorable tariffs—has encouraged imports but the real breakthrough will come with local production. If Letin Auto and others deliver on their plans, Pakistan could develop an entire EV supply chain, from batteries to component manufacturing.
For Punjab, the deal promises jobs, technology transfer, and stronger industry. For the auto sector, it signals that the era of conventional dominance is ending. “Chinese EV makers are rewriting the rules,” an analyst observed. “Those who adapt will thrive—those who resist may be left behind.”