Hybrid car prices in Pakistan drop by millions after tax cut

GST cut brings major price changes

The sudden reduction in hybrid car prices has caught the attention of buyers across Pakistan. The main reason is the government’s decision to reduce the General Sales Tax on vehicles from 25% to 18%.

The tax reduction came into effect on September 13, 2026, according to reports. However, car assemblers did not immediately change their prices and started announcing revised rates around two weeks later.

Honda cuts HR-V prices

Honda Atlas Cars has reduced the price of its HR-V E hybrid by Rs1,070,000. Its price has fallen from Rs10,369,000 to Rs9,299,000 after the latest revision.

The price of the HR-V VTI-S has also been reduced by Rs779,900. Its new price has been set at Rs7,299,000.

Toyota Corolla Cross also gets relief

Indus Motor Company has also announced price cuts for its Toyota Corolla Cross hybrid models. The Corolla Cross HEV X has become Rs570,000 cheaper, with its new price set at Rs9,729,000.

The price of the Corolla Cross HEV has been reduced by Rs550,000. Its new price now stands at Rs9,299,000.

Limited stock and buyer interest

Honda said the revised prices will apply for a limited period and limited stock. The new rates will apply to orders invoiced on or after September 25.

People linked to the auto sector expect the tax reduction to provide some relief to buyers and help revive demand. They said many customers had delayed purchases because of the high tax burden on vehicles.

The GST reduction has led to major price cuts in several hybrid vehicles. The lower prices could encourage some buyers who had postponed their purchase.

However, the impact on the wider car market will depend on how long the reduced prices remain available. Buyers may also compare different models before making a final decision.

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