Chinese electric vehicle manufacturer Letin Auto Group has announced plans to set up a production plant for small electric vehicles in Punjab, marking a significant boost for Pakistan’s auto industry.
A 15-member delegation led by the company’s General Manager met Punjab’s Minister for Industries and Commerce, Chaudhry Shafay Hussain, in Lahore to discuss project details. The minister assured the delegation of the Punjab government’s full support, highlighting incentives such as a 10-year income tax holiday and duty-free import of machinery for plants established in special economic zones.
Officials noted that Punjab is rapidly becoming a preferred destination for foreign investment, with new ventures strengthening the economy and creating thousands of jobs.
Letin Auto, which filed for bankruptcy in China in 2023 and completed its restructuring in 2024, is now eyeing Pakistan—particularly Punjab—not only as a production hub but also as an export base. Experts say Pakistan offers one of the lowest export tariffs to the United States, at 19%, making it a strategic choice for EV manufacturers.
The arrival of Chinese EV brands is reshaping Pakistan’s auto market. Global players like BYD, Changan, and MG are already present, while other companies are exploring assembly and production opportunities. Analysts believe that Japanese and Korean automakers will also need to revisit their strategies to remain competitive.
Industry experts predict that if Chinese EVs are introduced at affordable prices, they could quickly capture a large share of the Pakistani market by offering consumers cheaper and better alternatives. The initiative is also expected to encourage technology transfer, local parts manufacturing, and the development of the battery industry.
Observers describe the entry of Chinese EV companies as a turning point for Pakistan’s auto sector, with Punjab emerging as a hub for investment, job creation, and industrial growth.
