Prices of hybrid electric vehicles (HEVs) have started declining in Pakistan after automakers began passing on the impact of the recent reduction in general sales tax (GST). The GST rate on vehicles up to 2,000cc was reduced from 25% to 18% effective September 13, although assemblers delayed price revisions for nearly two weeks.
Honda Atlas Cars Ltd. (HACL) has reduced the price of its HR-V e: HEV to Rs. 9.299 million, down from Rs. 10.369 million. The HR-V VTIS is now priced at Rs. 7.299 million compared with Rs. 7.799 million previously. Honda said the revised prices are applicable to limited stock and orders invoiced from September 25.
Indus Motor Company has also announced reductions for its hybrid models. The Toyota Corolla Cross HEV X now costs Rs. 9.729 million after a reduction of Rs. 570,000, while the Corolla Cross HEV is priced at Rs. 9.299 million, reflecting a Rs. 550,000 decrease.
The price cuts follow months of uncertainty in the automotive sector after the Automotive Industrial Development Policy 2021-26 expired on June 30. The industry had expected a new auto policy from July 1, but the policy has yet to be announced, creating uncertainty over taxation, production and investment decisions.
Industry representatives said the earlier 25% GST had significantly affected demand for electrified vehicles and contributed to unsold inventory. Chery Master Director Sales and Marketing Syed Asif Ahmed said the 18% GST rate could help revive sales, although uncertainty remains over whether the rate could change under the upcoming auto policy.
Meanwhile, Mega Motor Company, the official BYD partner in Pakistan, said BYD has reached 10,000 vehicles on Pakistani roads, describing the milestone as the fastest ramp-up by a new entrant NEV brand in the country’s automotive market.
