Hybrid Car Prices Drop After GST Cut in Pakistan
Prices of hybrid electric vehicles (HEVs) in Pakistan have started to decline following the recent reduction in the general sales tax (GST) on vehicles with engine capacity up to 2,000cc. The GST rate was reduced from 25% to 18%, effective from September 13, although automakers began reflecting the price cuts about two weeks later.
Honda Atlas Cars Ltd. (HACL) has announced a price reduction for its HR-V hybrid models. The HR-V e: HEV is now priced at Rs. 9.299 million, down from Rs. 10.369 million. Similarly, the HR-V VTIS variant’s price has been adjusted to Rs. 7.299 million from Rs. 7.799 million. Honda clarified that the revised prices apply to limited stock and orders invoiced from September 25 onward.
Indus Motor Company also reduced its prices for hybrid variants of Toyota’s Corolla Cross. The Corolla Cross HEV X model now costs Rs. 9.729 million, a decrease of Rs. 570,000, while the Corolla Cross HEV is priced at Rs. 9.299 million, down by Rs. 550,000.
These price adjustments come after months of uncertainty in the Pakistani automotive sector, following the expiry of the Automotive Industrial Development Policy 2021-26 on June 30. The absence of a new policy since July 1 created ambiguity around taxation, production, and investment plans in the industry.
Industry insiders noted that the previous 25% GST rate had dampened demand for electrified vehicles and led to a build-up of unsold stock. Syed Asif Ahmed, Master Director Sales and Marketing at Chery, remarked that the reduced 18% GST should help revive hybrid vehicle sales, although concerns remain if the tax rate might change under the forthcoming auto policy.
Separately, Mega Motor Company, the official partner for BYD in Pakistan, highlighted that BYD has reached a milestone of 10,000 vehicles running on Pakistani roads. This achievement represents the fastest market penetration by a new energy vehicle (NEV) brand in the country’s automotive landscape.
The move to lower GST on hybrid vehicles is seen as a positive development by manufacturers and consumers alike, potentially encouraging wider adoption of environmentally friendly transport solutions amid rising interest in electric and hybrid technology in Pakistan.
