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BYD Pakistan Assembly Plant Nears Completion as Local EV Production Enters Final Stage
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BYD Pakistan Assembly Plant Nears Completion as Local EV Production Enters Final Stage

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BYD Pakistan Assembly Plant Moves Closer to Commercial Production Pakistan’s electric vehicle (EV) industry is set to reach a major milestone as the BYD Pakistan Assembly Plant enters its final phase of construction in Gharo, Sindh. The $150 million project is expected to pave the way for Pakistan’s first locally assembled BYD vehicle, marking a significant step toward cleaner mobility and advanced automotive manufacturing. Construction of the purpose-built New Energy Vehicle (NEV) facility has progressed rapidly, with equipment installation, testing, and commissioning now underway. Once operational, the plant will rank among Pakistan’s most modern automotive manufacturing facilities dedicated to electric and plug-in hybrid vehicles. BYD Pakistan Assembly Plant Ushers in a New Era of Local Manufacturing Completed in less than two years from groundbreaking, the BYD Pakistan Assembly Plant is one of the fastest automotive manufacturing projects of its scale in the country. According to BYD Pakistan Vice President of Sales and Strategy Danish Khaliq, the company remains committed to launching Pakistan’s first locally assembled BYD vehicle as soon as possible. Before full-scale production begins, the facility will undergo comprehensive equipment validation, production trials, and quality inspections to ensure every vehicle meets BYD’s global manufacturing standards. This phased approach is designed to deliver world-class quality while strengthening local vehicle production. Annual Production Capacity to Reach 25,000 Vehicles Once fully operational, the plant will have the capacity to assemble approximately 25,000 vehicles annually. The new facility is expected to: Industry analysts believe the investment could encourage other international automakers to expand local manufacturing as demand for New Energy Vehicles continues to grow. Rising Demand Supports BYD’s Expansion Plans The construction update follows another major achievement for BYD Pakistan. The company recently received its largest-ever shipment of more than 2,000 vehicles, delivered via a roll-on/roll-off (RoRo) vessel to meet growing consumer demand and strengthen inventory across its expanding dealership network. The increasing volume of deliveries reflects rising consumer confidence in electric mobility and growing acceptance of EVs and hybrid vehicles in Pakistan. Strategic Partnership Driving Local EV Production BYD entered Pakistan’s passenger vehicle market in 2024 through a strategic partnership with Mega Motor Company. Since then, the company has focused on expanding its local presence through manufacturing, dealership development, customer support, and long-term investment. Earlier announcements indicated that the first locally assembled BYD vehicle is expected to roll off the production line during July or August 2026, making the Gharo facility one of the country’s most significant investments in the emerging EV sector. Charging Infrastructure Expands Alongside Manufacturing Vehicle production is only one part of BYD’s long-term strategy in Pakistan. In collaboration with HUBCO Green Private Limited, the company has already established 19 public DC fast-charging stations along a network spanning nearly 1,300 kilometres, connecting Karachi to Peshawar. The charging network is expected to expand further into: The expansion aims to reduce range anxiety and make electric vehicles more practical for everyday use across Pakistan. Why the BYD Pakistan Assembly Plant Matters The BYD Pakistan Assembly Plant represents far more than a new automotive factory. It highlights Pakistan’s growing participation in the global shift toward sustainable transportation and clean energy technologies. The project is expected to deliver several long-term benefits, including: As the facility enters its final commissioning stage, Pakistan’s automotive industry is preparing for a new chapter where locally assembled New Energy Vehicles could play an increasingly important role in shaping the country’s future mobility landscape.

Chery Super Hybrid Pakistan Prices Reduced as Master Auto Absorbs Sales Tax Hike
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Chery Super Hybrid Pakistan Prices Reduced as Master Auto Absorbs Sales Tax Hike

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Pakistan’s hybrid vehicle market has received a boost as Master Auto Engineering (MAE), the official assembler and distributor of Chery vehicles in Pakistan, has announced a limited-time price relief initiative for its Chery Super Hybrid Pakistan lineup. Despite the recent increase in sales tax on vehicles, the company will absorb a significant portion of the additional tax, allowing customers to save up to Rs1.5 million on selected locally assembled plug-in hybrid electric vehicles (PHEVs). The offer is valid until July 31, 2026, or while stocks last, and aims to make advanced hybrid technology more accessible to Pakistani consumers. Chery Super Hybrid Pakistan Gets Temporary Price Relief Rather than transferring the full impact of higher taxes to buyers, Master Auto Engineering has introduced discounted ex-factory prices across its locally assembled Chery Super Hybrid range. Chery Tiggo 7 PHEV The Chery Tiggo 7 PHEV, which carried an earlier price tag of Rs9.499 million, now has a revised list price of Rs10.949 million following the tax adjustment. However, under the promotional offer, customers can purchase it for an effective ex-factory price of Rs9.999 million, resulting in savings of approximately Rs950,000. Chery Tiggo 8 PHEV The Chery Tiggo 8 PHEV has a revised price of Rs12.999 million, but buyers can avail the vehicle at Rs11.499 million during the promotional period, reducing the purchase cost by Rs1.5 million. Chery Tiggo 9 PHEV For buyers seeking a premium hybrid SUV, the Chery Tiggo 9 PHEV is available at an effective ex-factory price of Rs14.299 million, compared with its revised price of Rs15.749 million, offering savings of Rs1.45 million. Plug-In Hybrid Technology Gains Momentum The growing popularity of Chery Super Hybrid Pakistan reflects increasing consumer interest in fuel-efficient vehicles amid fluctuating fuel prices. The locally assembled Chery Super Hybrid lineup offers an electric-only driving range of up to 170 kilometers, while the combined driving range extends to approximately 1,400 kilometers using both electric power and the petrol engine. This allows drivers to complete most daily journeys on electricity while maintaining the convenience of long-distance travel without relying entirely on charging infrastructure. As Pakistan gradually expands its EV ecosystem, plug-in hybrid vehicles are emerging as a practical option for motorists seeking lower fuel costs and reduced emissions without concerns over charging availability. Master Auto Shields Customers from Tax Impact Pakistan’s automobile industry has been affected by higher taxes, currency depreciation, and rising production costs over the past few years, leading to significant increases in vehicle prices. Instead of passing the complete tax burden to customers, Master Auto Engineering has opted to absorb part of the increase for a limited period. The initiative is aimed at maintaining affordability while encouraging the adoption of cleaner mobility solutions. The company believes that offering better value to consumers will help accelerate the transition toward new energy vehicles in Pakistan. Local Manufacturing and Network Expansion Continue Beyond competitive pricing, Master Auto Engineering is expanding its footprint in Pakistan’s automotive sector. The company operates a manufacturing facility covering more than 60 acres and currently has 10 dealerships nationwide. It plans to expand its dealership network to 20 locations over the next six months, improving access to sales and after-sales services across the country. These investments support local manufacturing, employment, technology transfer, and the development of Pakistan’s automotive industry. CEO Reaffirms Customer Commitment Master Auto Engineering CEO Samir Malik said customers remain at the center of the company’s strategy, adding that the temporary pricing initiative is intended to make advanced new energy vehicles more accessible while supporting Pakistan’s transition toward cleaner transportation. Growing Opportunity for Hybrid Vehicles in Pakistan As fuel prices remain volatile and interest in environmentally friendly transportation grows, hybrid vehicles are becoming an increasingly attractive option for Pakistani consumers. With temporary price reductions, locally assembled production, expanding dealership coverage, and modern plug-in hybrid technology, Chery Super Hybrid Pakistan is strengthening its position in the country’s emerging new energy vehicle market. If demand continues to rise, the initiative could further accelerate the adoption of hybrid vehicles while supporting the growth of Pakistan’s automotive manufacturing industry.

Pakistan Auto Policy: Small Cars May Not Get Cheaper as IMF Raises Objections
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Pakistan Auto Policy: Small Cars May Not Get Cheaper as IMF Raises Objections

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Pakistan’s automotive sector is moving toward another major policy shift, but the government’s proposed reforms now hinge on approval from the International Monetary Fund (IMF). The upcoming Pakistan Auto Policy aims to attract investment, strengthen local manufacturing, create employment, and introduce higher international safety standards. However, proposed tax incentives are facing resistance from the IMF, creating uncertainty over whether consumers will benefit from lower vehicle prices. Pakistan Auto Policy Under IMF Review The federal government is expected to consult the IMF before finalizing tax-related measures under the new Pakistan Auto Policy, according to official sources. One of the key proposals under discussion is reducing the sales tax on 800cc vehicles from 18 percent to 12.5 percent. The government believes the reduction would make entry-level cars more affordable and stimulate demand in the local automobile market. However, the IMF has reportedly expressed reservations, arguing that lowering the tax could reduce government revenues at a time when Pakistan remains committed to meeting strict fiscal targets under its economic reform programme. The disagreement highlights the growing influence of IMF-backed fiscal reforms on Pakistan’s tax and industrial policies. Government Seeks to Attract Investment Prime Minister Shehbaz Sharif has directed the relevant ministries to formulate an investor-friendly Pakistan Auto Policy aimed at encouraging both domestic and foreign investment. The government hopes the new policy will create a stable business environment that encourages global automakers to expand operations in Pakistan, increase production capacity, and strengthen the country’s automotive supply chain. Officials believe these measures could improve Pakistan’s competitiveness and position the country as a more attractive destination for automotive investment. Focus on Local Manufacturing and Employment A key objective of the policy is to increase local manufacturing and reduce reliance on imported auto parts. Industry experts say higher localization would strengthen Pakistan’s vendor industry, reduce import dependency, and create thousands of jobs across manufacturing, engineering, logistics, and related sectors. Greater domestic production could also improve long-term cost efficiency for automakers operating in Pakistan. Higher Safety Standards Planned The proposed Pakistan Auto Policy also seeks to align locally assembled vehicles with internationally recognized safety standards. The government wants manufacturers to adopt modern production technologies and improve vehicle quality, enabling Pakistani-made vehicles to compete more effectively in export markets while offering safer products to domestic consumers. Improved safety regulations are also expected to boost consumer confidence in locally manufactured vehicles. Carbon Tax Proposal Under Consideration The government is also evaluating the introduction of a carbon tax on gasoline-powered and hybrid vehicles as part of its broader environmental strategy. The proposal reflects Pakistan’s increasing focus on reducing emissions and encouraging cleaner transportation options. If implemented, it could influence future vehicle purchasing decisions and encourage manufacturers to invest in greener technologies. Final Policy Depends on IMF Approval Before the Pakistan Auto Policy is finalized, the government is expected to continue discussions with the IMF regarding tax incentives, exemptions, and their fiscal impact. The final policy is likely to reflect a balance between Pakistan’s goal of promoting industrial growth and the IMF’s insistence on maintaining fiscal discipline. The outcome will be closely watched by automakers, investors, dealers, and consumers, as it will shape future investment, vehicle pricing, manufacturing activity, and employment across Pakistan’s automotive sector.

BYD Produces 17 Millionth New Energy Vehicle, Setting Global NEV Industry Record
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BYD Produces 17 Millionth New Energy Vehicle, Setting Global NEV Industry Record

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BYD has celebrated the production of its 17 millionth new energy vehicle (NEV) at its Xi’an manufacturing plant, with the all-new Seal 08 large flagship family sedan becoming the milestone vehicle. The achievement makes BYD the world’s first automaker to produce 17 million NEVs, setting a new acceleration benchmark for the global new energy vehicle industry. BYD Becomes First Automaker to Reach 17 Million NEVs The production milestone reinforces BYD’s leadership in the global electric and new energy vehicle market. With the rollout of its 17 millionth NEV, the company has established a new industry benchmark, highlighting the rapid pace of its growth and manufacturing capabilities in the new energy sector. Seal 08 Marks Historic Production Milestone The milestone vehicle is the all-new BYD Seal 08, a large flagship family sedan produced at the company’s Xi’an plant. The launch underscores BYD’s continued expansion of its product lineup while meeting growing global demand for new energy vehicles. Strong Sales Momentum Continues in 2026 Despite intensifying competition and ongoing consolidation in the global NEV market, BYD has maintained its leadership through technological innovation, a diverse product portfolio, and an expanding international presence. During the first half of 2026, the company recorded cumulative sales of 1,808,511 vehicles worldwide. Overseas Business Records Robust Growth BYD’s overseas passenger car and pickup sales reached 789,367 units during the first six months of the year, representing a 68% year-on-year increase. The strong international performance highlights the company’s growing global footprint and increasing demand for its new energy vehicles across overseas markets. BYD Strengthens Its Global Leadership in New Energy Vehicles The production of the 17 millionth NEV marks another major milestone in BYD’s global expansion strategy. Backed by continued technological innovation, expanding production capacity, and strong international sales growth, the company continues to strengthen its position as one of the world’s leading manufacturers of new energy vehicles.

inDrive announces STEM and AI education initiative to empower Pakistani youth and drivers’ families
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inDrive Launches STEM and AI Education Initiative for Pakistani Youth and Drivers’ Families

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Global mobility platform inDrive has announced a new education initiative in Pakistan aimed at equipping school-age children and young people with skills in Science, Technology, Engineering, and Mathematics (STEM), coding, and Artificial Intelligence (AI). The program is designed to promote digital literacy and create future opportunities for children, with a special focus on families connected to Pakistan’s growing gig economy. 80% of Seats Reserved for Drivers’ Children The initiative will prioritize children of inDrive’s driver partners, with 80% of program seats reserved exclusively for drivers’ families. The remaining 20% will be allocated to children from marginalized communities. Students will be enrolled across three age groups to ensure age-appropriate learning and skill development. According to the company, the program is being introduced in Pakistan after the successful implementation of a similar pilot project in Egypt. Passengers Can Support the Initiative Through Loyalty Rewards As part of the initiative, inDrive has integrated a donation feature into its inDrive MAX loyalty program. Passengers using the app earn digital loyalty coins through their rides and can choose to donate those coins to support the STEM education program. The donated rewards will help fund learning materials, equipment, technology resources, and training infrastructure for participating students. The feature allows users to contribute to the educational initiative without making direct monetary donations. Focus on Technology for Social Impact Speaking about the initiative, Muhammad Awais Saeed, Country Lead for inDrive Pakistan, said the objective extends beyond teaching technical skills. He explained that the program is designed to help students use technology to solve real-world problems within their own communities while encouraging critical thinking, creativity, and responsible innovation. According to Saeed, the initiative aims to demonstrate how technology can become a practical tool for positive social change. Program Targets More Than 400 Students During its initial rollout, the education program plans to train more than 400 students across Pakistan. Approximately 100 students will be enrolled at each regional location, with classes organized into four to five specialized learning groups to maintain effective classroom sizes and personalized instruction. The structured approach is intended to maximize learning outcomes while providing students with practical exposure to STEM, coding, and AI technologies. Supporting Digital Inclusion in Pakistan Through the initiative, inDrive says it aims to strengthen digital inclusion by creating educational opportunities for children who may have limited access to technology-focused learning. By combining its mobility platform, loyalty program, and community engagement efforts, the company seeks to support the next generation of digital talent while contributing to the long-term development of Pakistan’s technology ecosystem. The initiative also reflects a broader effort to empower families participating in the gig economy by investing in education and future-ready skills.

Islamabad Police Departments Mark Milestone in Electric Mobility Adoption with BYD EVs
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Islamabad Police Departments Mark Milestone in Electric Mobility Adoption with BYD EVs

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Islamabad, 29 June, 2026 – Mega Motor Company (MMC), the official partner of BYD in Pakistan, has delivered an additional fleet of BYD electric vehicles to Islamabad Capital Police and Islamabad Traffic Police, building on the departments’ earlier adoption of EVs as part of their fleet electrification programme. This expansion further supports the Capital’s sustainability objectives and reinforces its position as a pioneer in the adoption of electric mobility within Pakistan’s public sector. On this occasion, senior leadership of BYD from China led by Mr. Liu Xueliang – Vice President of BYD Company Limited, General Manager of BYD Asia-Pacific Auto Sales Division, Mr. Ketsu Zhang – Deputy General Manger of BYD Aisa-Pacific Auto Sales Division, Mr. Lei Jian – Country Head BYD Pakistan, and Mr. Danish Khaliq – VP Sales & Strategy Mega Motor Company were present to handover the vehicles. It was also attended by senior officials from Capital Police Department, including Mr. Muhammad Haroon Joya – Director General Safe City & DIG Traffic and Miss. Kainat Azhar Khan – Chief Traffic Officer Islamabad. Talking about this milestone Mr. Muhammad Haroon Joya, Director General Safe City and DIG Traffic, said, “We have embarked on this journey to support the Prime Minister’s vision of Green Mobility Adoption, and we believe BYD was the right choice to help us achieve that objective. Islamabad Police has always taken pride in leading by example, and the adoption of electric vehicles is another step in that direction. Our long-term vision is to gradually transition the entire Islamabad Police fleet towards cleaner and more sustainable mobility solutions.” Talking about this milestone, Miss Kainat Azhar Khan said, “This latest delivery builds upon Islamabad Traffic Police’s earlier induction of BYD EVs and reflects the department’s continued commitment to upgrading its fleet under the directive of Prime Minister’s vision of Green Mobility Adoption. These vehicles will support operational mobility requirements while helping reduce fuel consumption, lower operating costs, and contribute to a cleaner environment.” Commenting on the collaboration, Liu Xueliang, Vice President of BYD, said: “The Federal department’s continued adoption of sustainable mobility solutions demonstrates its leadership in advancing more efficient and future-ready public service operations. As Pakistan seeks to reduce its dependence on imported petroleum products and protect the environment, the adoption of electric vehicles across both public and private sectors will play an increasingly critical role. BYD remains committed to facilitating this transition through leading technology, a diverse portfolio of new energy vehicles, and continued investment in solutions that support Pakistan’s electrification goals.” Danish Khaliq, VP Sales & Strategy at MMC, said, “The continued collaboration and trust between Islamabad Police and BYD reflects growing confidence in new energy vehicle technology and, highlights the role electric mobility can play in delivering both environmental and operational efficiencies. We remain committed to supporting the Government’s sustainability objectives while contributing to Pakistan’s broader transition toward cleaner, smarter transportation.” As per the directive from Prime Minister Shehbaz Sharif on accelerating adoption of electric vehicles, public-sector institutions are increasingly exploring electric mobility as a practical solution to address rising fuel costs, strengthening energy security and protecting the environment.

Chery Master Pakistan Rolls Off Locally Assembled Tiggo 7 PHEV, Expands PHEV SUV Lineup
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Chery Master Pakistan Rolls Off Locally Assembled Tiggo 7 PHEV, Expands PHEV SUV Lineup

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Karachi, June 25: Chery Master Pakistan has rolled off the locally assembled Tiggo 7 PHEV, adding a third plug-in hybrid SUV to its Pakistan portfolio and strengthening its presence in the country’s growing new energy vehicle segment. With the addition of Tiggo 7 PHEV, the company now has three locally assembled PHEV SUVs in production, including Tiggo 8 PHEV and Tiggo 9 PHEV. The lineup covers the C, D and E-SUV segments, making it one of the most extensive locally assembled plug-in hybrid SUV portfolios currently available in Pakistan. The development follows the earlier line-off of Tiggo 8 PHEV and Tiggo 9 PHEV, which were rolled out within five days of each other, followed by customer deliveries ahead of committed timelines. The company said the latest rollout reflects its focus on localization, production readiness and timely deliveries. The milestone also comes at a time when the auto sector is closely watching possible policy and tax changes that could affect vehicle prices. Chery Master Pakistan said it has increased production capacity and moved to double-shift operations to facilitate deliveries for existing customers and new bookings placed during June across its model lineup. The Tiggo 7 PHEV was launched in Pakistan at an introductory ex-factory price of PKR 9,499,000, with a booking amount of PKR 1,500,000. Test drives and bookings are available through Chery dealerships nationwide. Powered by Chery Super Hybrid technology, the Tiggo 7 PHEV offers 342 horsepower and 525 Nm of torque, with up to 90 km of pure electric driving range and a combined range of up to 1,200 km. The vehicle is equipped with eight airbags, Level 2 ADAS and a 5-star safety rating. Speaking on the occasion, CEO Master Auto Engineering, Samir Malik, said the rollout of Tiggo 7 PHEV marks another step in the company’s long-term commitment to Pakistan. “The successful rollout of Tiggo 8 PHEV, Tiggo 9 PHEV and now Tiggo 7 PHEV reflects our ability to combine global technology, manufacturing quality and customer value with rapid execution,” he said. “We have increased production capacity and moved to double-shift operations to facilitate deliveries for existing customers as well as new bookings placed during June.” Globally, Chery has been China’s leading automotive exporter for 23 consecutive years, with operations in more than 130 countries and regions and over 19 million users worldwide. In Pakistan, the brand is backed by Master Group’s 40 years of automotive manufacturing expertise.

BYD Expands Footprint in Karachi with New Dealership Amid Rising NEV Demand
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BYD Expands Footprint in Karachi with New Dealership Amid Rising NEV Demand

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Karachi, June 23, 2026 — BYD Pakistan, through its official partner Mega Motor Company (Pvt.) Limited, has announced the expansion of its presence in Karachi with the opening of a third authorized BYD dealership in Korangi to cater to the growing demand for New Energy Vehicles (NEVs) in Pakistan’s largest automotive market. The new dealership marks the seventh location in the company’s nationwide network and reinforces its commitment to making electric mobility more accessible to Pakistani consumers. Speaking at the inauguration, Danish Khaliq, Vice President Mega Motor Company, said: “At BYD, we are committed to leading the NEV transition by continuously expanding our presence and ensuring customers have easy access to BYD’s world-class technology. Opening this new 3S dealership is a direct response to the demand and reinforces our focus on bringing sustainable mobility accessible to consumers across Pakistan.” He further added that BYD will continue to expand its customer network across major cities in the second half of 2026. BYD’s current NEV portfolio, including the BYD Atto 2, BYD Atto 3, BYD Seal, BYD Sealion 7, and BYD Shark 6, will be available for display, test drives, and bookings at the new dealership.

Pakistan Manufacturing Sector Expands 6.4% as Automobile Industry Leads Growth
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Pakistan Manufacturing Sector Expands 6.4% as Automobile Industry Leads Growth

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Pakistan’s large-scale manufacturing sector maintained its growth momentum during April 2026, supported by strong performances in automobiles, garments and other industries. The latest provisional data showed that industrial activity continued to recover despite weakness in some sectors. According to the Quantum Index of Manufacturing (QIM) based on 2015-16 prices, the index stood at 114.56 in April 2026. Large Scale Manufacturing Industries (LSMI) recorded a 6.06 percent increase compared to April last year. However, output declined by 8.32 percent on a month-on-month basis compared with March 2026. During the first ten months of fiscal year 2025-26, the manufacturing sector expanded by 6.44 percent. The average QIM reached 122.19, compared with 114.79 during the same period a year earlier. Automobile Sector Remains the Main Growth Driver The automobile sector emerged as the strongest performer during the period. Production increased by 83.88 percent in April compared with the same month last year. On a cumulative basis, the sector posted a remarkable growth of 64.33 percent during July-April FY26. The sharp increase highlighted improving consumer demand and higher production activity in the industry. The automobile sector also made the largest contribution to overall manufacturing growth, adding 1.61 percentage points to the cumulative expansion. Sugar Production Registers Strong Growth The sugar industry witnessed an exceptional rise in April. Output surged by nearly 360 percent during the month. As a result, the sector recorded cumulative growth of 31.60 percent during the first ten months of the fiscal year. The food sector, which includes sugar production, contributed 1.60 percentage points to overall manufacturing growth, making it the second-largest contributor after automobiles. Garments and Petroleum Products Maintain Momentum Pakistan’s garment industry continued to show resilience. Production increased by 15.18 percent in April, while cumulative growth reached 7.34 percent during July-April FY26. The sector contributed 1.19 percentage points to the overall expansion in manufacturing output. Meanwhile, petroleum products registered a 3.83 percent increase in April. The sector maintained a cumulative growth rate of 10.04 percent during the ten-month period and contributed 0.74 percentage points to overall growth. Cement production also performed strongly. Output increased by 9.11 percent in April and posted cumulative growth of 9.13 percent. Other sectors supporting manufacturing growth included electrical equipment, beverages, tobacco, furniture and transport equipment. Some Industries Continue to Face Pressure Despite the overall positive trend, several industries remained under pressure. Iron and steel production fell by 12.88 percent in April and recorded a cumulative decline of 6.98 percent during the July-April period. Fertilizer production contracted by 10.55 percent in April. The sector’s cumulative decline widened to 1.98 percent. Cotton yarn output also declined by 1.12 percent during the month, although it managed to record a cumulative increase of 1.52 percent. Pharmaceuticals, chemicals, leather products, machinery and equipment, and textiles also made negative contributions to overall manufacturing growth. Economic Conditions Continue to Improve The continued expansion in the manufacturing sector reflects improving economic conditions and stronger domestic demand. Higher activity in automobiles, garments, food processing and petroleum products supported industrial growth during the fiscal year. However, weakness in intermediate and capital goods sectors such as iron and steel and chemicals continued to limit broader industrial recovery. Economists believe sustained growth in manufacturing could strengthen employment, boost exports and support overall economic expansion if current momentum continues.

Budget 2026-27: Proposed GST Hike Could Increase HEV Car Prices by Over Rs1 Million
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Budget 2026-27: Proposed GST Hike Could Increase HEV Car Prices by Over Rs1 Million

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Hybrid electric vehicle (HEV) buyers may face significantly higher costs if the federal government approves a proposal to increase the General Sales Tax (GST) on hybrid vehicles to 18 percent in Budget 2026-27. The proposed measure is part of broader discussions on rationalizing tax concessions for hybrid and electric vehicles. Industry reports suggest that changes to the current tax regime could lead to sharp increases in vehicle prices across several popular HEV models. Popular Hybrid Models Could Become More Expensive According to projected estimates circulating within the auto industry, some of Pakistan’s most popular hybrid vehicles could witness price hikes ranging from more than Rs400,000 to over Rs1 million if the proposed GST rate comes into effect. The biggest increase is expected for the GWM Haval H6 HEV. Its current price of Rs11.749 million could rise by approximately Rs1.029 million, taking the vehicle’s expected new price to Rs12.778 million. Similarly, the GWM Tank 500 HEV could become costlier by around Rs1.002 million. Its projected price would increase from Rs20.5 million to Rs21.502 million. Toyota Corolla Cross Also Expected to See Price Jump Toyota’s hybrid crossover lineup is also likely to be affected. The Corolla Cross 1.8 HEV, currently priced at Rs8.535 million, could increase by around Rs417,000, bringing its expected price to Rs8.952 million. Meanwhile, the Corolla Cross 1.8 HEV X could witness a rise of approximately Rs437,000, pushing its projected price to Rs9.372 million. Honda, MG and Jaecoo Models on the List Honda’s HR-V e:HEV may also become more expensive under the proposed tax structure. The hybrid crossover’s price could increase by about Rs788,000, taking it from Rs8.999 million to Rs9.787 million. MG’s HS Hybrid+ is expected to see an increase of roughly Rs832,000. If approved, the vehicle’s price could rise from Rs9.499 million to Rs10.331 million. Meanwhile, Jaecoo’s J5 Comfort and J5 Premium models could also face substantial increases. The J5 Comfort may rise from Rs6.699 million to Rs7.286 million, while the J5 Premium could increase from Rs7.699 million to Rs8.373 million. Auto Industry Awaits Budget Announcement The auto sector is closely watching the upcoming federal budget as uncertainty surrounds tax incentives for hybrid and electric vehicles. Recent industry discussions have highlighted concerns that reducing tax concessions could slow the adoption of cleaner vehicles in Pakistan. While the projected prices have generated concern among prospective buyers, the proposed GST increase has not yet been approved. The final decision will be announced when the government unveils the Federal Budget 2026-27. Until then, consumers and automakers remain on alert, as any change in the tax structure could significantly affect the cost of hybrid vehicles across Pakistan.

The Boardroom PK delivers trusted business news, analysis, and insights from Pakistan and beyond, keeping readers informed, inspired, and ahead in the evolving world of business and leadership.

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