Chinese EV Maker Letin Auto to Establish Plant in Punjab, Pakistan

LAHORE: Pakistan’s automotive sector is gearing up for a major transformation as China’s Letin Auto Group officially announced its plan to establish a small-scale electric vehicle (EV) manufacturing facility in Punjab. This strategic move not only reflects the growing importance of Pakistan as an emerging EV market but also signals increasing competition among local and international automakers.

Letin Auto’s Entry into Pakistan

A 15-member delegation from Letin Auto, led by General Manager Xu Zhen, recently met Punjab’s Minister for Industries and Commerce, Chaudhry Shafay Hussain, in Lahore. During the meeting, both parties discussed the company’s investment plans and the incentives offered by the provincial government to encourage foreign investors. Punjab has positioned itself as an attractive hub for industrial investment, with a 10-year income tax holiday and duty-free import of machinery in Special Economic Zones (SEZs).

Minister Hussain assured the Chinese delegation of complete government support, stating that Punjab’s pro-business policies are creating a favorable climate for industrial growth. “New investments are not only strengthening our economy but also generating employment opportunities for thousands of people,” he said. The minister emphasized that promoting electric mobility is a government priority, with Punjab expected to play a leading role in Pakistan’s shift toward clean transportation.

Background of Letin Auto Group

Letin Auto, also known as Levdeo Automobile Group, went through bankruptcy proceedings in China in 2023 and completed its reorganization in 2024. Auto industry experts believe that the company’s decision to expand into Pakistan may be part of its strategy to re-establish itself in a new market. Pakistan’s incentive-friendly policies and lower tariff barriers compared to the U.S. provide a competitive advantage for Letin, making Punjab an ideal base for both local sales and potential exports.

Growing Presence of Chinese EV Makers in Pakistan

Letin’s arrival adds to the growing list of Chinese automakers investing in Pakistan’s EV sector. Major players such as BYD, Changan, and British brand MG have already introduced electric vehicles into the market. Others are actively exploring assembly and production facilities. Industry analysts say that this growing influx of Chinese companies reflects the rising confidence in Pakistan’s EV industry, which is still in its early stages but has significant potential due to increasing fuel costs and supportive government policies.

Impact on Competition in the Auto Industry

The entry of Letin Auto is expected to intensify competition in Pakistan’s auto market. A senior executive from a Japanese car manufacturer admitted that the presence of another Chinese EV brand would force existing companies to speed up their own EV strategies. “We cannot remain idle anymore. We must introduce affordable EV models quickly to stay competitive,” the official said.

Similarly, another auto industry representative noted that Chinese automakers are known for delivering cost-effective and fast-to-market solutions. If Letin offers competitively priced models, it could rapidly capture market share, increasing pressure on established brands. However, this competition will ultimately benefit consumers, offering them more options and affordable access to EVs.

Other Automakers Preparing for the EV Race

Global automakers already operating in Pakistan are also preparing to join the EV race. A senior executive at Hyundai Pakistan confirmed that the company has started internal studies to introduce EV models within the next few years. “Globally, Hyundai is pushing aggressively toward electric mobility, and Pakistan will not be left behind. The entry of new Chinese players like Letin Auto will push us to bring EVs to Pakistan sooner,” he said.

Consumer Interest in EVs

For Pakistani consumers, especially the middle class, the arrival of new EV manufacturers could be a game changer. With fuel prices continuously increasing, many car buyers are looking for affordable alternatives. Salman Ali, an EV enthusiast from Lahore, expressed optimism: “If these small EVs are priced reasonably, they can give thousands of people a chance to switch to clean mobility. This will change the auto landscape entirely.”

Role of Pakistan’s EV Policy

Pakistan’s EV policy has been a driving factor in attracting foreign investment. The policy includes reduced customs duties on EV components, favorable tariffs, and incentives for local assembly. By encouraging companies like Letin Auto to establish plants, Pakistan can reduce its reliance on imported EVs while also fostering the growth of a domestic supply chain, including battery and component manufacturing.

Benefits for Punjab and Pakistan’s Economy

For Punjab, Letin Auto’s investment promises multiple benefits, such as:

• Creation of new job opportunities for skilled and semi-skilled workers.
• Transfer of advanced EV technology to the local market.
• Strengthening of the province’s industrial base through foreign investment.
• Contribution to environmental goals by promoting clean transportation.

On a national level, the growing presence of EV manufacturers supports economic diversification and reduces dependence on fossil fuels. It also aligns with Pakistan’s global commitments to combat climate change.

Conclusion: A New Era for Pakistan’s Auto Industry

The entry of Letin Auto marks the beginning of a new chapter in Pakistan’s auto industry. With multiple Chinese automakers entering the market and established players like Hyundai and Japanese brands gearing up for competition, the local EV sector is on the verge of rapid expansion. For decades, the market has been dominated by a few brands offering limited choices, but the landscape is now shifting toward greater diversity, affordability, and sustainability.

As competition grows, consumers will gain access to more affordable EV options, while the economy benefits from foreign investment and job creation. Whether it’s new entrants like Letin Auto or established players bringing their EV technologies, Pakistan’s road to cleaner mobility is accelerating. In the coming years, Punjab could become the country’s hub for electric vehicle manufacturing, setting the stage for a greener and more competitive auto future.