China’s strong partnership with Pakistan is having a major impact on the country’s automotive sector. Through the China-Pakistan Economic Corridor (CPEC), Chinese companies are helping Pakistan move faster toward electric vehicles (EVs).
Several Chinese brands, including Changan, MG, Chery, FAW, and JAC Motors, are increasing their presence in Pakistan through local joint ventures. Major EV company, BYD, is working with a local partner to set up an assembly plant and plans to launch three fully electric models by 2026. Meanwhile, GWM, in partnership with Sazgar Engineering, has introduced models such as the ORA 3 EV.
Chinese firms have also committed large foreign investments, with more than $340 million pledged for new manufacturing plants and EV charging infrastructure. This investment supports Pakistan’s goal of making electric vehicles account for 30% of all new car sales by 2030 under its NEV policy.
Chinese companies also see Pakistan as a key base for exporting right-hand drive EVs to nearby markets, including Sri Lanka, Bangladesh, and the Middle East.
Chinese firm eyes EV assembly investment under CPEC
A leading Chinese company, Tianjin Chuanhui Group, is exploring plans to set up an electric vehicle (EV) assembly line in Pakistan, a move that could give a strong push to the country’s green transport and industrial development efforts.
The development came after a delegation of the Chinese conglomerate visited the Board of Investment (BOI) in Islamabad on December 2, 2025, to discuss potential investment opportunities. The visit follows a Memorandum of Understanding (MoU) signed during the Pak-China B2B Investment Conference held in Beijing in September this year, indicating growing momentum in bilateral economic cooperation.
Read more: Pakistan seeks China’s support to develop sodium-ion batteries for EVs
Focus on Two and Three-Wheeler Electric Vehicles
As per officials, Tianjin Chuanhui Group is particularly interested in establishing the EV assembly facility within one of Pakistan’s Special Economic Zones (SEZs). The proposed project would focus on two- and three-wheeler electric vehicles, which are widely used for daily commuting and commercial transport across the country.
In addition to vehicle assembly, the company is also considering investments in EV charging infrastructure and the introduction of electric vehicles in the agricultural sector. These initiatives are meant to
- Reduce fuel consumption
- Lower carbon emissions
- Promote environmentally friendly mobility solutions
Government Support and Facilitation
During the meeting, BOI officials briefed the Chinese delegation on incentives and facilities available in SEZs, including tax exemptions, improved infrastructure, and simplified regulatory procedures. The board assured full support in facilitating approvals and encouraging partnerships between Pakistani and Chinese companies.
A separate orientation session was also held with relevant ministries to guide the company on regulatory requirements and implementation processes, reflecting the government’s intent to fast-track serious foreign investment projects.
Part of CPEC’s Industrial Cooperation Phase
The proposed EV project is glanced as a huge step under the Industrial Cooperation Phase of the China-Pakistan Economic Corridor (CPEC). This phase is strongly focusing on
- Industrialization
- Technology transfer
- Job creation, moving beyond infrastructure development
Under the leadership of Federal Minister Qaiser Ahmed Sheikh, the BOI is leaving no stone unturned to actively engage with foreign investors to strengthen Pakistan’s economic ties with China and captivate sustainable, long-term investment.
How it will create impacts on Pakistan’s Economy and Environment
If the project materializes, it could escort multiple benefits for Pakistan. The EV assembly line is expected to create new jobs, support local vendors, and reduce dependence on imported fuel. Affordable electric two- and three-wheelers is going to
- Minimize huge transportation costs for citizens
- Help tackle rising air pollution in urban centers
Moreover, the project would support Pakistan’s climate goals, encourage clean energy adoption, and position the country as an emerging hub for electric vehicle manufacturing in the region.