Hybrid Car Prices Fall After Sales Tax Cut

Automakers in Pakistan have started cutting prices of locally assembled hybrid electric vehicles after the government reduced the general sales tax on hybrids with engine capacities up to 2,000cc from 25 percent to 18 percent.

Several manufacturers have moved in recent days, with Toyota and Honda among the first to announce revisions.

Toyota reduced both Corolla Cross hybrid variants, according to a notification reported by ProPakistani. The Corolla Cross HEV X now costs Rs 9,729,000, down Rs 570,000, while the Corolla Cross HEV costs Rs 9,299,000, down Rs 550,000. The revised prices are ex-factory Karachi and apply from September 13, 2026.

ProPakistani reported that Toyota had raised the same variants on July 8 after the sales tax on locally manufactured hybrids was increased from 8.5 percent to 25 percent effective July 1. At that time, the HEV X rose from Rs 8,935,000 to Rs 10,299,000 and the HEV from Rs 8,535,000 to Rs 9,849,000. Compared with the pre-July prices, the HEV X is now Rs 794,000 higher and the HEV Rs 764,000 higher, according to figures from ProPakistani.

Honda Atlas Cars Ltd has also revised prices of its hybrid models, including the HR-V e:HEV, Dawn reported, but the newspaper did not provide the revised price list. TechJuice noted that assemblers delayed passing on the tax reduction for nearly two weeks after it took effect on September 13.

Separately, Mega Motor Company, BYD's official partner in Pakistan, announced that BYD has reached a milestone of 10,000 vehicles on Pakistani roads, according to Dawn. The company called it the fastest ramp-up by a new-entrant New Energy Vehicle brand in the country's automotive history.

The general sales tax on locally produced hybrids up to 2,000cc was first increased from 8.5 percent to 25 percent on July 1 and later reduced to 18 percent effective September 13. The latest cuts are the first significant rollback since the July increase pushed hybrid prices sharply higher.