ISLAMABAD – Pakistan’s hybrid vehicle market has been hit with steep price increases as the government ended the reduced General Sales Tax (GST) for locally assembled hybrid electric vehicles under the Budget 2026-27. The withdrawal of tax concession triggered price hikes of up to Rs2.54 million, pushing several popular hybrid models into the Rs. 10 million (Rs. 1 crore) category.
Honda Atlas is among the latest automakers to revise prices, raising HR-V e:HEV from Rs89Lac to Rs1.03 Crore, an increase of Rs13Lac. The revised price came into effect on July 1, 2026, making the HR-V e:HEV one of Pakistan’s newest SUVs to cross the Rs. 1 crore threshold.
Earlier this week, Toyota updated prices for its hybrid lineup. The Corolla Cross HEV X now costs Rs. 10,299,000, up from Rs. 8,935,000, while the Corolla Cross HEV has climbed to Rs. 9,849,000 from Rs. 8,535,000. Petrol-powered Corolla Cross variants remain unaffected.
The end of tax incentive sent ripples across automotive industry. Several manufacturers have reportedly suspended invoicing and deliveries of hybrid vehicles while awaiting official clarification on the applicable GST. The reduced tax rate was introduced under the previous five-year automotive policy to encourage the adoption of cleaner and more fuel-efficient vehicles.
With no extension announced in the latest budget, the concession expired automatically, restoring the standard sales tax. The impact extends well beyond Honda and Toyota, with nearly every hybrid and plug-in hybrid model witnessing substantial increases.
| Vehicle | Expected Price Increase |
| Kia Sorento 1.6T HEV AWD | Rs. 2.539 million |
| Hyundai Palisade Comfort | Rs. 2.499 million |
| GWM Tank 500 PHEV | Rs. 2.445 million |
| Kia Sorento 1.6T HEV FWD | Rs. 2.327 million |
| Hyundai Palisade Smart | Rs. 2.281 million |
| GWM Tank 500 HEV | Rs. 2.227 million |
| Hyundai Santa Fe Signature | Rs. 2.113 million |
| Chery Tiggo 9 PHEV | Rs. 2.082 million |
| Haval H6 PHEV | Rs. 1.961 million |
| Jetour T2 | Rs. 1.946 million |
| Hyundai Santa Fe Smart | Rs. 1.893 million |
| Hyundai Tucson Hybrid Signature | Rs. 1.861 million |
| Chery Tiggo 8 PHEV | Rs. 1.718 million |
| Kia Sportage L HEV | Rs. 1.718 million |
| Hyundai Tucson Hybrid Smart | Rs. 1.706 million |
| Jaecoo J7 | Rs. 1.597 million |
| MG HS Super Hybrid | Rs. 1.551 million |
| Hyundai Elantra Hybrid | Rs. 1.505 million |
| Chery Tiggo 7 PHEV | Rs. 1.445 million |
| MG HS Hybrid+ | Rs. 1.445 million |
| Jaecoo J5 Premium | Rs. 1.171 million |
| Jaecoo J5 Comfort | Rs. 1.019 million |
The latest revisions underline the immediate impact of the government’s tax policy, with buyers now facing additional costs ranging from just over Rs. 1 million to more than Rs. 2.5 million on hybrid vehicles.
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