Hybrid Cars Prices in Pakistan Increase by Up to Rs1.3 Million Following GST Hike

Hybrid cars prices in Pakistan have surged by as much as Rs1.3 million after the federal government increased the General Sales Tax (GST) on hybrid electric vehicles (HEVs) in the FY2026-27 budget. The price hike comes as Pakistan’s much-awaited Auto Policy 2026-31 remains under review, creating uncertainty across the automobile industry.

The increase in taxes has forced major automakers to revise prices, while several assemblers have reportedly delayed deliveries and invoicing in anticipation of possible policy changes.

Toyota Corolla Cross Hybrid Prices Increased

Following the GST increase from 8.5% to 25%, Indus Motor Company has significantly raised the prices of its locally assembled Toyota Corolla Cross Hybrid variants.

According to the latest price revision:

• Toyota Corolla Cross Hybrid High is now priced at Rs10.299 million, an increase of Rs1.364 million.
• Toyota Corolla Cross Hybrid Low now costs Rs9.849 million, up by Rs1.314 million.

The revised prices are among the largest increases seen in Pakistan’s hybrid vehicle segment this year.

Honda HR-Ve Also Becomes More Expensive

Honda Atlas Cars Pakistan also updated the price of its hybrid crossover.

The Honda HR-Ve’s price has now reached Rs10.369 million, a rise of around Rs1.370 million after the levy of the higher GST.

The new pricing has also further widened the cost gap between conventional and hybrid vehicles in Pakistan.

Auto Policy 2026-31 Still Awaiting Approval

Minister for Finance Muhammad Aurangzeb had earlier mentioned that a committee set up by the Prime Minister is reviewing the Auto Policy 2026-31.

The policy will be submitted to Parliament once the Prime Minister and federal cabinet approve, the finance minister said.

The government has indicated that the draft has been prepared, but car manufacturers have refused to comment on the ongoing delay.

Dealers Concerned Over Declining Demand

The rapid rise in the price of hybrid vehicles could dampen sales as more people seek fuel-efficient cars, industry dealers say.

Multiple vehicle manufacturers have been reported as delaying their hybrid car invoice and delivery dates, due to potential changes in the auto policy or the government’s reconsideration of the higher GST rate.

This also is expected to lead to a rise in the cost of plug-in hybrid electric vehicles (PHEVs).

Industry Warns of Impact on Consumers

The extra price of Rs1.3 million to Rs1.9 million per car could deter people from shifting to eco-friendly and less polluting cars in the automotive industry, stakeholders warn.

The increased prices might delay Pakistan’s move toward hybrid vehicles, as car and financing costs continue to rise for consumers, experts say.

The Auto Policy 2026-31 is still to be finalized which leaves both the manufacturers and consumers of vehicles in the dark about the future of the automobile industry in Pakistan.