Punjab is set to attract fresh foreign investment as China’s Letin Auto Group announced plans to establish a small electric vehicle (EV) factory in the province. The move signals a boost for Pakistan’s clean mobility drive and highlights Punjab’s growing role in the country’s EV transition.
A 15-member delegation, led by General Manager Xu Zhen, met Punjab’s Minister for Industries and Commerce, Chaudhry Shafay Hussain, in Lahore. They discussed the project’s roadmap, possible incentives, and government support.
The minister assured full facilitation for investors, especially in Special Economic Zones. He emphasized that benefits include a 10-year income tax holiday and duty-free import of machinery.
The minister noted that the investment would strengthen Punjab’s economy while creating new jobs. He also stressed that the provincial government is prioritizing sustainable transportation, with Punjab aiming to lead the national EV shift.
Letin Auto, also known as Levdeo Automobile Group, faced bankruptcy proceedings in China in 2023 but completed restructuring in 2024. Analysts believe the company is now exploring new markets, with Pakistan offering lucrative incentives and a favorable export base. Notably, U.S. tariffs on Pakistani exports remain relatively low at 19 percent.
The company’s entry aligns with growing interest from other automakers, including BYD, Changan, and MG, that are either exploring or expanding EV operations in Pakistan.
Industry experts say the trend reflects the sector’s long-term potential, fueled by rising fuel prices and pro-EV government policies.