Chinese Company to Build Electric Car Factory in Punjab

Punjab is set to attract new foreign investment as China’s Letin Auto Group has announced plans to establish a small electric vehicle (EV) manufacturing facility in the province.

A 15-member delegation led by General Manager Xu Zhen met with Punjab’s Minister for Industries and Commerce, Chaudhry Shafay Hussain, in Lahore to discuss the project and possible incentives.

The minister assured full support from the provincial government, noting that investors in Special Economic Zones would benefit from a 10-year income tax holiday and duty-free import of machinery.

Hussain said the new investment would not only strengthen Punjab’s economy but also create jobs. He added that the government was prioritizing clean mobility, with Punjab aiming to lead Pakistan’s EV transition.

Letin Auto, also known as Levdeo Automobile Group, underwent bankruptcy proceedings in China in 2023 and completed its reorganization in 2024. Industry observers believe the company is now seeking new markets, with Pakistan offering both incentives and an export base supported by relatively low U.S. tariffs of 19 percent.

The group joins other automakers, including BYD, Changan, and MG, that are exploring or expanding EV operations in Pakistan. Experts say the growing interest highlights the sector’s long-term potential amid rising fuel costs and favorable policies.