GST reduction brings down prices of hybrid cars in Pakistan

Prices of hybrid electric vehicles (HEVs) in Pakistan have started falling after the General Sales Tax (GST) on vehicles up to 2,000cc was reduced from 25% to 18% on September 13, 24NewsHD TV reported on Saturday.

Automakers did not immediately revise their prices following the tax cut, but new prices have now started to emerge.

Honda Atlas Cars Ltd (HACL) reduced the price of the HR-V e from Rs10.369 million to Rs9.299 million, a cut of Rs1.07 million.

The price of the HR-V VTi-S was also reduced from Rs7.799 million to Rs7.299 million.

HACL said the revised prices would apply for a limited period and to limited stock.

The new retail prices apply to all orders invoiced on or after September 25.

Indus Motor Company (IMC) has also reduced prices of its hybrid models.

According to a company circular, the Toyota Corolla Cross HEV X now costs Rs9.729 million, down by Rs570,000, while the Corolla Cross HEV is priced at Rs9.299 million after a reduction of Rs550,000.

The price cuts come amid continued uncertainty in Pakistan’s auto sector.

The Automotive Industrial Development Policy (AIDP) 2021-26 expired on June 30, under which the GST on electric vehicles was 8.5%.

The industry has been waiting for a new auto policy, which was expected to take effect from July 1 but has yet to be announced.

Automakers have said the absence of a clear policy framework has created uncertainty across the automotive value chain, affecting business planning, production schedules and investment decisions.

Several companies also delayed vehicle invoicing during July and August because of uncertainty over the applicable policy and tariff structure.

An industry source said vehicle sales could gradually return to normal in the coming months.

However, it remains unclear whether GST will be reduced further or remain at the current rate, depending on decisions under the new auto policy.

The source added that most vehicles from Honda and other assemblers were expected to reach customers within two months.

BYD reaches 10,000 vehicles on Pakistani roads

Meanwhile, Mega Motor Company (MMC), the official partner of BYD in Pakistan, said the Chinese new-energy vehicle (NEV) brand has reached the milestone of 10,000 vehicles on Pakistani roads.

The company described the achievement as the fastest expansion by a new NEV entrant in Pakistan’s automotive history.

The developments come as automakers continue to navigate policy uncertainty and wider regional tensions.

Despite the ongoing turmoil in the Middle East following the Iran-US conflict that began on February 28, completely knocked-down (CKD) kits are reportedly readily available at assembly plants.