Pakistan cuts hybrid car prices after tax reduction — Dawn

In Pakistan, car assemblers have begun cutting prices for hybrid models after the general sales tax for vehicles with engines up to 2,000 cubic centimetres was reduced from 25% to 18% starting September 13. As Dawn reports, companies started revising their price lists nearly two weeks after the new rate took effect.

New Honda and Toyota prices

Honda Atlas Cars Ltd reduced the price of the HR-V e: HEV from 10.369 million to 9.299 million Pakistani rupees, and that of the HR-V VTIS from 7.799 million to 7.299 million rupees. The company said the new prices would apply for a limited time and only to a limited stock of vehicles. They apply to orders invoiced from September 25.

Indus Motor Company said the price of the Toyota Corolla Cross HEV X had been reduced by 570,000 rupees, to 9.729 million rupees. The price of the Corolla Cross HEV fell by 550,000 rupees, to 9.299 million rupees.

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Uncertainty in the automotive market

Chery Master Sales and Marketing Director Syed Asif Ahmed said that setting an 18% tax rate for electrified vehicles could boost sales. According to him, buyers had postponed vehicle purchases while awaiting the government’s decision, while the 25% rate caused a sharp drop in demand and an accumulation of unsold vehicles by mid-September.

The Automotive Development Policy for 2021–2026 expired on June 30. It provided for an 8.5% tax rate for electric vehicles. The new policy, which was due to take effect from July 1, has still not been announced. Assemblers believe that uncertainty over the rules and tariffs affected business, production and investment planning. In July and August, several companies temporarily postponed invoicing for vehicles because of a lack of clarity regarding the policy and tariff regime.

Mega Motor Company, BYD’s official partner in Pakistan, also said that the number of BYD vehicles on the country’s roads had reached 10,000.