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MG Motors has updated the prices of several models in Pakistan following the implementation of the 2025–26 federal budget, which introduced a 2% tax hike on vehicles with engine capacities between 1300cc and 1800cc.
Impact of Budget on MG Models
The change directly affects MG’s petrol-powered vehicles in the mid-range engine category. Popular models like the MG HS Trophy, HS Essence, ZS, and MG 5 Petrol now come with higher price tags.
However, “cars with engines 2.0L and above, or fully electric models,” remain unaffected by this tax revision, for now. This includes models such as the MG RX8, Marvel R, and Cyberster GT, which continue to be sold at their previous prices.
Here’s a quick look at the price changes for key models affected by the new tax:
MG Prices in Pakistan
| Model & Variant | Engine/Type | Current Price (PKR) | Expected Price After 2% Tax (PKR) |
|---|---|---|---|
| MG HS Trophy | 1.5L Turbo Petrol | 8,199,000 | 8,362,980 |
| MG HS Essence | 1.5L Turbo Petrol | 7,699,000 | 7,852,980 |
| MG HS 2.0T AWD | 2.0L Turbo Petrol | 9,299,000 | 9,299,000 (unchanged*) |
| MG HS PHEV | 1.5L Turbo Hybrid | 8,499,000 | 8,668,980 |
| MG ZS | 1.5L Petrol | 4,399,000 | 4,486,980 |
| MG ZS EV MCE Essence | Electric | 10,990,000 | 10,990,000 (unchanged*) |
| MG ZS EV MCE Long Range | Electric | 14,999,000 | 14,999,000 (unchanged*) |
| MG 4 Excite | Electric | 9,799,000 | 9,799,000 (unchanged*) |
| MG 4 Essence | Electric | 10,990,000 | 10,990,000 (unchanged*) |
| MG 5 EV SE Long Range | Electric | 13,490,000 | 13,490,000 (unchanged*) |
| MG 5 (Petrol) | 1.5L Petrol | 4,399,000 | 4,486,980 |
| MG 6 | 1.5L Petrol | 6,500,000 | 6,630,000 |
| MG RX8 | 2.0L Turbo Petrol | 18,400,000 | 18,400,000 (unchanged*) |
| MG Marvel R | Electric | 10,000,000 | 10,000,000 (unchanged*) |
| MG Cyberster GT (Single) | Electric | 26,990,000 | 26,990,000 (unchanged*) |
| MG Cyberster GT (Dual) | Electric | 29,990,000 | 29,990,000 (unchanged*) |
| MG Extender | 2.0L Diesel | 6,000,000 | 6,000,000 (unchanged*) |
High-end electric vehicles like the MG ZS EV MCE, MG 4, and MG Cyberster GT, which fall under alternative taxation brackets, will retain their existing prices. Likewise, models like the MG HS 2.0T AWD, RX8, and Extender, all powered by 2.0L engines, are outside the new tax bracket.
Consumer Trends and Market Outlook
The new tax regulation may steer cost-sensitive buyers toward more affordable models or even the used car market. With prices now crossing key psychological thresholds, for example, the MG HS Trophy crossing Rs. 8.36 million and ZS EV Long Range exceeding Rs. 15.29 million, affordability becomes a growing concern for mid-tier buyers.
Industry analysts believe the rising cost of ownership may further solidify the demand for small-displacement vehicles and EVs, especially if additional tax relief is not offered for petrol-powered cars.
