Punjab is on the verge of welcoming a new wave of foreign investment as China’s Letin Auto Group has announced plans to set up a small-scale electric vehicle (EV) manufacturing plant in the province. The move is seen as another step toward Pakistan’s slow but steady transition to clean mobility.
A 15-member delegation from Letin Auto, led by General Manager Xu Zhen, met with Punjab’s Minister for Industries and Commerce, Chaudhry Shafay Hussain, in Lahore to discuss the project. The talks focused on potential incentives, infrastructure, and the province’s commitment to supporting green industries.
Government Assurances and Incentives
Minister Hussain had given the guarantee the delegation of full government support, highlighting Punjab’s ambition to become a hub for EV production.
He reminded investors that organizations operating in the province’s Special Economic Zones (SEZs) are entitled to attractive benefits, including a 10-year income tax holiday and duty-free import of machinery.
According to the minister, the new investment will not only strengthen the provincial economy but also generate new jobs and open opportunities for local suppliers. “Our priority is clean mobility, and Punjab is ready to take the lead in Pakistan’s EV transition,” he said.
Why Pakistan?
For Letin Auto—also known as Levdeo Automobile Group—this project represents a fresh start. The company faced bankruptcy in China in 2023 but completed its reorganization last year. Industry observers believe Letin is now exploring new markets to rebuild its presence, and Pakistan offers a combination of generous incentives and export potential.
One key factor drawing EV makers to Pakistan is its comparatively low U.S. tariffs on Pakistani vehicles—about 19 percent—making the country a strategic export base for global markets.
Growing EV Interest in Pakistan
Letin Auto is not alone in eyeing Pakistan. Other automakers, including BYD, Changan and MG is also either expanding or considering EV operations in the country.
Experts keep on saying that this growing interest is strongly depicting the long-term potential of the Pakistani EV market, particularly as rising fuel prices and supportive government policies make electric vehicles more attractive.
With this investment, Punjab is positioning itself not just as a manufacturing hub but as a driving force behind Pakistan’s green mobility future.