The delay in announcing Pakistan’s new Auto Policy 2026-31, coupled with a sharp increase in GST on hybrid vehicles, has pushed up prices of locally assembled hybrid cars by up to Rs1.3 million.
Finance Minister Muhammad Aurangzeb had earlier said the policy was under review by a committee formed by the prime minister and would be presented to parliament after approval by the premier and cabinet.
The FY27 budget increased GST on hybrid electric vehicles (HEVs) from 8.5 per cent to 25pc, prompting major manufacturers to revise prices.
Indus Motor Company has raised the prices of its two Toyota Corolla Cross hybrid models by Rs1.364 million and Rs1.314m, taking them to Rs10.299m and Rs9.849m, respectively.
Honda Atlas Cars Limited has also increased the price of its HR-Ve model by Rs1.370m to Rs10.369m.
Other assemblers have reportedly delayed invoicing and deliveries of hybrid vehicles, apparently awaiting possible changes in the upcoming auto policy or hoping the government may reconsider the higher GST rate.
Dealers fear the price surge could weaken demand for hybrid vehicles, while plug-in hybrid electric vehicles (PHEVs) are also expected to become more expensive due to the tax increase.
Industry stakeholders warn that the additional cost of Rs1.3m to Rs1.9m may discourage consumers from shifting to fuel-efficient vehicles.
Assemblers have declined to comment on the delayed auto policy, despite government claims that its draft has been prepared.
