KARACHI: After a delay of nearly two weeks, assemblers have begun lowering prices for hybrid electric vehicles (HEVs) following the reduction in the general sales tax (GST) on vehicles up to 2,000cc, from 25 per cent to 18pc, effective Sept 13.
Also on Friday, Mega Motor Company (MMC), BYD’s official partner in Pakistan, announced that “BYD has reached a major milestone of 10,000 vehicles on Pakistani roads, marking the fastest ramp-up by a new-entrant New Energy Vehicle (NEV) brand in the country’s automotive history”.
Honda Atlas Cars Ltd (HACL) has revised the prices of HR-V e: HEV and HR-V VTIS to Rs9.299 million and Rs7.299m from Rs10.369m and Rs7.799m, respectively.
HACL said the new prices are for a limited time and would be offered on limited stock. New retail prices will be applicable on all orders invoiced on and after Sept 25.
Assemblers pass on GST cut after two-week delay
According to a circular issued by the Indus Motor Company (IMC), the new prices of Toyota Corolla Cross HEV X and Cross HEV are Rs9.729m and Rs9.299m, respectively, down by Rs570,000 and Rs550,000.
Chery Master Director Sales and Marketing Syed Asif Ahmed told Dawn that the government’s decision to settle the general sales tax (GST) issue at 18pc from 25pc on electrified vehicles may revive sales, as consumers had delayed their purchases, waiting for the government’s decision.
Under the Automotive Industrial Development Policy (AIDP) 2021-26, which expired on June 30, the GST was 8.5pc on EVs.
After the expiry of AIDP, the industry has been waiting for the new policy, which was expected to take effect from July 1, but it has yet to be announced.
Assemblers believe that the absence of a clear policy framework had created uncertainty across the automotive value chain, affecting business planning, production scheduling and investment decisions. During the July-August period, several assemblers temporarily deferred vehicle invoicing due to the absence of clarity on the applicable policy and tariff regime.
Mr Asif recalled that the 25pc GST caused a sharp drop in demand, leaving a sizable stock of assemblers’ electrified vehicles unsold until mid-September as consumers waited for clarity on the GST issue.
“I think sales will return to normal in the coming months,” he said, adding that it is unclear whether GST will drop further or remain unchanged, depending on decisions in the new auto policy.
On deliveries and bookings, he said most vehicles from his company and other assemblers will be delivered in the next two months.
It also seems that completely knocked-down (CKD) kits are readily available at assemblers’ plants, despite geopolitical tension in the Middle East, as the Iran-US war has plunged the region into turmoil since Feb 28.
Published in Dawn, September 26th, 2026
