New Chinese EV Maker Letin Auto to Establish Electric Vehicle Plant in Punjab
Pakistan is bracing for a fresh wave of industrial development as Chinese electric vehicle (EV) manufacturer Letin Auto Group announces plans to build a small-scale EV assembly facility in Punjab. This announcement comes alongside growing momentum in Pakistan’s push toward cleaner mobility.
A 15-member delegation from Letin, headed by General Manager Xu Zhen, recently held talks in Lahore with Punjab’s Industries and Commerce Minister, Chaudhry Shafay Hussain. The provincial government assured full cooperation, offering incentives such as a 10-year exemption from income tax and duty-free import of machinery for operations within designated Special Economic Zones .
Minister Hussain emphasized that this project not only injects vitality into the local economy but is expected to generate jobs for thousands. He underscored the government’s ambition to position Punjab at the forefront of Pakistan’s transition to green transportation .
Letin Auto, which went through bankruptcy proceedings in China in 2023 and completed its restructuring in 2024, appears to be repositioning itself—potentially using Pakistan as both a production base and export gateway. Analysts point out that Pakistan offers one of the lowest tariffs to the U.S. at approximately 19%, making it an attractive proposition for EV firms .
The arrival of Letin joins a growing list of Chinese EV brands entering the market, including BYD, Changan, and MG. Market observers believe this influx reflects increasing confidence in Pakistan’s burgeoning EV sector—born from rising fuel prices and government-backed incentives .
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Established automakers are already feeling the pressure. A representative from a Japanese-based assembler noted that the entry of yet another Chinese EV player has forced them to accelerate their own electric vehicle strategies. Hyundai Pakistan is likewise reviewing its plans, reflecting the urgency brought by incoming competitors .
Analysts anticipate that competition sparked by Letin and others will significantly reshape the local auto industry—driving a shift away from traditional combustion engines toward cleaner alternatives. This transformation could also catalyze the growth of domestic industries such as battery production and EV component manufacturing, ultimately benefiting consumers through expanded choices and more affordable options .
EV proponents are optimistic. As Salman Ali, an enthusiast from Lahore, put it, “Affordable small EVs could be a game-changer. With fuel costs soaring, competitively priced Chinese EVs could offer the middle class a real pathway to cleaner transportation”