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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.

Pakistan Auto Market to Witness 23 New Launches in Next 6 Months: Arif Habib Limited
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Pakistan Auto Market to Witness 23 New Launches in Next 6 Months: Arif Habib Limited

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Arif Habib Limited (AHL) has released its latest ‘Upcoming Automobile Launch Tracker’, projecting approximately 23 new vehicle introductions in Pakistan between June and December 2026. These launches span 14 brands and include a strong mix of 9 electric vehicles (EVs), 11 plug-in hybrids (PHEVs), and 3 internal combustion engine (ICE) models. This wave of new models signals continued momentum in Pakistan’s automotive industry, driven by growing consumer demand for modern, efficient, and electrified vehicles.Electrification Gains MomentumThe tracker highlights a clear shift toward greener powertrains. With 20 out of 23 upcoming vehicles featuring electric or plug-in hybrid technology, OEMs are aggressively expanding their electrified portfolios. Recent market entries like GAC Aion V and Aion UT have already generated interest, setting the stage for more launches. Upcoming highlights include BYD’s Sealion 6 PHEV, Denza B5, and Denza B8 models. These additions are expected to strengthen BYD’s presence as the company ramps up local assembly plans. Chinese brands continue to lead the charge, bringing competitive pricing and advanced features suited to Pakistani roads and consumer preferences.Industry observers note that policy support, improving charging infrastructure in major cities, and rising fuel costs are encouraging buyers to consider EVs and hybrids. The focus remains on SUVs and crossovers, which dominate the new launch list, but the portfolio is broadening.Diversification Across SegmentsWhile SUVs remain the star segment, manufacturers are introducing variety. The tracker points to premium sedans, electric hatchbacks, and lifestyle pickup trucks entering the market. Notable mentions include Chery’s Omoda C7, NextGen’s Jaecoo J8, and SAZEW’s Cannon Alpha pickup. These launches cater to different price points and use cases — from urban commuters seeking efficient hatchbacks to families wanting spacious SUVs and adventure enthusiasts eyeing rugged pickups. The inclusion of premium offerings also indicates growing interest in luxury and feature-rich vehicles among upper-middle-class buyers.AHL’s analysis suggests this product diversification reflects evolving consumer preferences. Buyers are no longer satisfied with basic mobility; they seek technology, safety features, connectivity, and better efficiency. Local assemblers and importers are responding by bringing global models adapted for Pakistan. The sustained launch pipeline is expected to inject competition, potentially leading to better pricing, improved after-sales service, and faster technology transfer. Recent sales data has shown double-digit growth in several months, with EVs posting particularly strong gains in some periods. Analysts believe these new models could help Pakistan’s auto industry move closer to long-term goals of reducing oil imports and lowering emissions. However, challenges remain, including the need for wider charging networks, consistent policy frameworks, and development of local component manufacturing. Overall, the second half of 2026 looks promising for auto enthusiasts and the broader economy. With nearly two dozen new vehicles on the horizon, Pakistan’s roads are poised to see greater variety, advanced technology, and a faster transition toward sustainable mobility.

Pakistan Set to End EV and Hybrid Tax Relief Under IMF Pressure in Budget 2026-27
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Pakistan Set to End EV and Hybrid Tax Relief Under IMF Pressure in Budget 2026-27

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The government prepares to remove tax exemptions on electric and hybrid vehicles in the upcoming federal budget 2026-27. The International Monetary Fund rejects Pakistan’s request to maintain existing tax relief on these vehicle categories. The Ministry of Industries and Production confirms the development. Officials now move forward with plans to impose a uniform 18 percent sales tax on both electric and hybrid vehicles. The decision marks a significant policy reversal for Pakistan’s green vehicle sector. Massive Tax Jump Looms for EV and Hybrid Buyers Currently, electric vehicles carry a concessional sales tax of just 1 percent. Hybrid vehicles face a reduced rate of 8 percent. The proposed budget eliminates both concessions. The government plans to apply the standard 18 percent sales tax rate across both categories. This means electric vehicle buyers face an 1,700 percent increase in their tax rate. Hybrid vehicle buyers face a jump of more than 125 percent. Consumers and dealers react with alarm to the proposed shift. The government also eyes solar panels for a tax increase. Officials consider raising solar panel sales tax from 10 percent to 18 percent. The move signals a broader rollback of green energy incentives across multiple sectors. Prices to Rise on Imported and Local EVs Officials confirm that removing exemptions will push vehicle prices sharply higher. Both imported and locally assembled hybrid and electric vehicles will become more expensive. Importers warn that the cost increase will pass directly to consumers. Automakers currently investing in local EV assembly face fresh uncertainty. Industry representatives urge the government to reconsider the decision. They argue that the tax hike undermines years of policy work to promote cleaner transportation in Pakistan. The timing raises concerns within the industry. Pakistan’s EV market remains in an early growth phase. High prices already limit adoption among middle-income buyers. A jump to 18 percent sales tax threatens to stall that growth completely. EV Imports Show Steady Demand Despite Rising Costs Import data reveals strong consumer interest in electric and hybrid vehicles despite existing cost pressures. Pakistan imported approximately 45,000 electric and hybrid vehicles in the previous fiscal year. Current fiscal year estimates project around 40,000 units as costs rise and policy uncertainty grows. Between July and April of the current fiscal year alone, Pakistan imported nearly 38,000 vehicles. The figures demonstrate that demand remains resilient even under challenging conditions. Industry analysts warn that the proposed 18 percent sales tax could significantly dent these numbers. Higher upfront costs may push buyers back toward conventional petrol and diesel vehicles. This outcome would contradict Pakistan’s stated goals of reducing fuel imports and cutting vehicle emissions. The government faces pressure from multiple sides as budget discussions intensify in the coming weeks.

BYD Sponsors Mystapaki’s Cinematic Exploration of Cholistan’s Hidden Stories
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BYD Sponsors Mystapaki’s Cinematic Exploration of Cholistan’s Hidden Stories

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Karachi, May 25, 2026: There are places in Pakistan where the landscape feels endless, where survival depends on resilience, and where stories go back in time just as the sands that make up the place. In these parts of the country, the desert does not simply shape the land, it shapes the people who learn to live within it. The second episode of The Great Pakistan Adventure – Desert Atlas, powered by BYD, journeys deep into the heart of Cholistan, uncovering a side of Pakistan rarely explored with such depth and emotion. Towering dunes. Endless golden horizons. Roads that disappear beneath shifting sand. Bastions of Derawar standing tall and visible across miles. Music echoing across the silence of the desert. It is about endurance. It is about revival. It is about communities whose identity has been shaped by one of Pakistan’s harshest terrains. More than just a travel experience, Desert Atlas unfolds like a cinematic portrait of Cholistan’s history, people, and spirit. Bilal Hassan, more popularly known as Mystapaki, is a content creator, writer, and photojournalist known for documenting travel, culture, and everyday life across Pakistan. His storytelling makes him a natural fit for this journey, as he uncovers the layers of life that exist within the deserts of Cholistan and Bahawalpur, communities and histories often overlooked beneath the vastness and harshness of the landscape. Through Bilal’s narrative, the desert transforms from an unforgiving terrain into a living archive of resilience, folklore, music, and deeply human stories, revealing a side of the region that few truly experience. One of the episode’s most powerful moments highlights the revival of the black buck, once nearly extinct in Pakistan. Set against the vast landscapes of Lal Suhanra National Park, one of South Asia’s largest national parks, the story becomes a reminder that even the harshest landscapes can still protect life when communities refuse to give up on it. “The Black Buck is a community animal that lives with its herd, marking its territory with its hoofs”, said Yaqoob Anwar, Assistant Director Wildlife, Chinkara and Black Buck Breeding Centre, Lalsuhanra, Bahawalpur. “Each herd has an alpha male, magnificent and proud, standing out with his posture. However, when another alpha enters their territory, there are fights and also injuries, all of which need to be documented and cared for to ensure healthy growth of these animals,” he added further. And there is a lot more that the episode explores, most notably the iconic Cholistan Desert Rally, which has transformed the desert into one of Pakistan’s most recognised off-road destinations. Along the journey, Bilal is joined by professional rally driver Muhammad Marwat, whose years of experience navigating the annual rally have given him an instinctive understanding of the terrain. With remarkable precision and ease, Marwat maneuvers the BYD Shark 6 across the shifting sands, showcasing the vehicle’s capability, control, and adaptability in one of Pakistan’s most demanding off-road environments. Throughout the episode, the BYD Shark 6 is tested across Cholistan’s unforgiving terrain, with its dedicated sand mode allowing the vehicle to maintain traction and stability across constantly shifting dunes and soft desert surfaces. As day turns to night, its powerful headlights cut through the darkness of Cholistan’s vast and isolated landscapes, while the pickup itself becomes an extension of the journey, enabling access to places far beyond conventional routes. Among the episode’s most emotional stories is that of Maha Hussain, a young biker from Bahawalpur whose journey reflects resilience against social expectations and environmental hardship. Supported by her father’s encouragement, Maha pursued her passion despite the challenges around her. In a deeply personal moment, she helps Mystapaki fulfill his father’s wish, which feels even more special through the narrative that this is the first thing he has ever asked from his son, Bilal. Locating the prestigious school in Bahawalpur where he had studied as a gold medalist. Can he get in and fulfill his father’s wish? That’s for you to find out. What makes Desert Atlas truly stand apart is the way it captures the soul of Cholistan through its people, music, and untold stories. The desert may be harsh, but its music carries warmth through every note. Featuring original sounds recorded within the local community and produced by Zohaib Kazi of Coke Studio fame, the soundtrack echoes stories of longing, love, and survival, becoming an emotional extension of the land and the people who call it home. In a time where travel content is often reduced to fleeting reels and clickbait, The Great Pakistan Adventure offers something far more lasting – stories that stay with audiences long after the journey ends. Through breathtaking landscapes, deeply human experiences, and untold communities, the series invites viewers to rediscover the beauty, diversity, and spirit of Pakistan, leaving them with a renewed sense of connection to the country and its people. The full episode of The Great Pakistan Adventure: Desert Atlas is now available to watch on YouTube at BYD Pakistan’s official channel.

inDrive’s Aurora Ventures Targets Pakistan Women Tech Founders With Fresh Startup Funding
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inDrive’s Aurora Ventures Targets Pakistan Women Tech Founders With Fresh Startup Funding

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inDrive has launched Aurora Ventures, a bold new investment program aimed at solving one of Pakistan’s biggest startup challenges: the lack of funding for women tech founders. The announcement has created fresh excitement across Pakistan’s startup ecosystem, especially among female entrepreneurs struggling to secure early-stage investment despite the country’s booming digital economy. The new initiative will invest between $180,000 and $250,000 into women-led startups at the pre-seed and seed stages. The program will initially focus on emerging markets, with Pakistan positioned as a major priority market. inDrive’s Aurora Ventures Plans to Transform Pakistan Startup Funding Pakistan’s startup ecosystem has grown rapidly over the last few years. According to research by Dealroom, the country’s startup ecosystem value has crossed $4 billion since 2020, outperforming several established global tech hubs in terms of growth pace. Yet behind this impressive expansion lies a serious problem. Access to investment capital remains extremely limited, particularly for female founders trying to scale innovative businesses. This is the gap that inDrive’s Aurora Ventures now aims to fill. Speaking about the initiative, Awais Saeed said Pakistan represents a critical test market for the company’s broader investment ambitions. He noted that the country already has exceptional entrepreneurial talent and a fast-growing digital economy, but women-led startups often reach institutional funding far later than they should. According to him, the issue is not capability but lack of access to investors and structured support systems. Why Pakistan Women Tech Founders Are Getting Global Attention Pakistan is increasingly becoming a hotspot for women-led innovation. The country recorded more than 200 submissions for the Aurora Tech Award in 2025 alone, reflecting rising participation from female entrepreneurs across the technology sector. One of the most notable Pakistani success stories linked to the initiative is Faiza Yousuf, who became a finalist in the 2023 edition of the award and gained international recognition through the platform. Aurora Ventures plans to use insights collected from five years of Aurora Tech Award data to identify startups with high growth potential before their market valuations rise significantly. This strategy could allow Pakistani founders to secure capital much earlier in their business journey. inDrive Expands Beyond Ride-Hailing Into Startup Investments The launch of Aurora Ventures also signals a major strategic shift for inDrive. Known globally as a ride-hailing and urban services platform, the company is now actively positioning itself as a long-term ecosystem investor in emerging markets. Instead of only offering transportation services, inDrive plans to support startups with funding, operational guidance, infrastructure access, and strategic mentorship. This broader ecosystem approach could help local startups overcome many of the operational barriers that slow business growth in Pakistan. Industry experts believe this model may become increasingly important as global venture capital investment becomes more selective and difficult to secure for early-stage founders. Pakistan Startup Ecosystem Faces Funding Crisis Despite rapid growth in Pakistan’s tech sector, funding shortages continue to impact startup survival rates. Many promising startups fail to move beyond early development stages due to the absence of institutional investors willing to take risks on emerging founders. Female entrepreneurs face even greater hurdles, often struggling to access investor networks dominated by traditional funding circles. Aurora Ventures enters the market at a time when demand for inclusive startup financing is reaching critical levels. The initiative’s focus on women-led startups could create new momentum for diversity within Pakistan’s technology industry while helping unlock untapped economic potential. Aurora Ventures Could Reshape Pakistan’s Startup Future The 2026 pilot phase of inDrive Aurora Ventures will focus on building its first investment portfolio while strengthening its long-term presence across emerging markets. For Pakistan’s growing community of women entrepreneurs, the program may represent far more than just another funding source. It could become a gateway to international visibility, global mentorship networks, and faster business scaling opportunities. As competition within Pakistan’s startup ecosystem intensifies, initiatives like Aurora Ventures may play a decisive role in determining which founders emerge as the country’s next major tech success stories.

BYD Pakistan comes to Sialkot to showcase its NEV range
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BYD Pakistan comes to Sialkot to showcase its NEV range

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Sialkot – BYD, the world’s No. 1 New Energy Vehicle (NEV) brand, continued its nationwide outreach aimed at introducing its New Energy Vehicle (NEV) portfolio as well as accelerating adoption of electric mobility through the city’s dynamic and globally connected consumer base. The on-ground activation is happening near Heaven Hawks Golf Club, Sialkot Cantt, and will end on 31st May, 2026. Sialkot, known for its export-driven economy and progressive consumer landscape, continues to emerge as a high-potential market for sustainable mobility solutions. The experience provided consumers with an opportunity to engage closely with BYD’s globally recognised NEV lineup through immersive product walkthroughs and expert-led interactions tailored to address key questions surrounding NEV technology, performance, and ownership. The showcase featured the BYD Atto 2, BYD Atto 3, and the BYD Shark 6, Pakistan’s most powerful PHEV pickup, with each model designed to cater to distinct lifestyles, driving preferences, and mobility needs. Visitors also had the opportunity to learn more about BYD’s industry-leading innovations, including the revolutionary Blade Battery, globally recognised for its safety, durability, and efficiency standards. Through live demonstrations and technology showcases, consumers are introduced to BYD’s advanced approach to performance, energy efficiency and intelligent cabin connectivity. “The transition to new energy vehicles is becoming increasingly critical for Pakistan’s sustainable future, and it is important that this shift is inclusive of cities beyond the traditional urban centres,” said Danish Khaliq, Vice President Sales and Strategy at BYD Pakistan – Mega Motor Company. “BYD is focused on enabling that transition by bringing our global technology directly to consumers. Sialkot’s progressive and export-oriented outlook makes it an important market for us, and this initiative is about creating awareness, building confidence, and making electric mobility more accessible for the consumer here.” Sialkot marked the second stop in a broader nationwide outreach initiative by BYD Pakistan, following Gujranwala, with upcoming engagements planned across key cities including Multan and Hyderabad. Through these on-ground experiences, BYD Pakistan aims to engage directly with consumers, better understand their evolving mobility expectations, and showcase how zero-emission, zero-fuel vehicles can seamlessly combine advanced technology, performance, and long-term value. The initiative is part of BYD Pakistan’s broader commitment to making electric mobility more accessible by giving consumers the opportunity to experience EV technology firsthand and make more informed mobility decisions.

Used Vehicle Imports Drop Boosts Pakistan Auto Parts Industry Growth
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Used Vehicle Imports Drop Boosts Pakistan Auto Parts Industry Growth

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Pakistan’s struggling manufacturing sector may finally be seeing a major turnaround as the sharp decline in Used Vehicle Imports begins to fuel growth for local auto assemblers and parts manufacturers. The Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has described the dramatic fall in imported used cars as a “game-changing development” for industrialisation in the country. Industry leaders believe the shift could revive Pakistan’s auto manufacturing ecosystem and create fresh momentum for large-scale industrial growth. For years, local manufacturers argued that excessive imports of used vehicles were damaging domestic production, reducing investment, and hurting thousands of workers linked to Pakistan’s automotive supply chain. Now, new government measures appear to be reversing that trend. Used Vehicle Imports Hit Record Low in Pakistan According to PAAPAM, only 148 used vehicles entered Pakistan in April under various import schemes. The figures reveal a stunning decline compared to previous years when monthly imports ranged between 3,500 and 4,000 vehicles. The imported vehicles included: • 19 vehicles under the gift scheme• 120 vehicles under the baggage scheme• 9 vehicles under the transfer of residence scheme Industry experts say this sharp reduction reflects stricter enforcement by authorities and the closure of loopholes that were allegedly being exploited for commercial imports. PAAPAM claims many importers had been misusing overseas Pakistani schemes to bring in vehicles for resale, creating unfair competition for local manufacturers. How Used Vehicle Imports Hurt Pakistan’s Auto Parts Industry The biggest beneficiaries of the decline in Used Vehicle Imports are Pakistan’s local auto vendors and parts manufacturers. According to PAAPAM, every locally assembled vehicle contains approximately Rs1.5 million worth of locally manufactured parts. When consumers purchase imported used vehicles instead of locally assembled cars, that revenue disappears from Pakistan’s industrial economy. The association estimates that used car imports have been causing annual losses exceeding Rs60 billion for domestic parts manufacturers. That financial damage affected thousands of businesses connected to the automotive supply chain, including: • Steel manufacturers• Plastic component makers• Tire companies• Electrical parts suppliers• Small engineering workshops Industry insiders say the latest import slowdown is already helping local factories increase production capacity and improve business confidence. Government Policies Behind the Decline in Used Vehicle Imports PAAPAM praised the government for taking “timely corrective measures” to support domestic manufacturing and reduce dependency on imported vehicles. The association believes policy reforms have successfully tightened regulations surrounding import schemes that were originally designed to facilitate overseas Pakistanis rather than commercial traders. These actions are now encouraging consumers to shift back toward locally assembled vehicles, directly benefiting Pakistan’s manufacturing sector. Experts say the move also supports the government’s broader economic goals, including: • Reducing pressure on foreign exchange reserves• Promoting industrialisation• Increasing employment opportunities• Expanding local manufacturing capacity• Supporting large-scale manufacturing growth Used Vehicle Imports Decline Fuels Industrial Recovery Pakistan’s large-scale manufacturing sector has faced serious challenges in recent years due to inflation, currency depreciation, high interest rates, and falling consumer demand. However, the drop in Used Vehicle Imports is now being viewed as a positive signal for industrial recovery. PAAPAM says rising demand for locally assembled vehicles is increasing production activity among both assemblers and vendors. This renewed activity could strengthen Pakistan’s industrial output in the coming months. The association also stressed that sustainable policy support remains essential if Pakistan wants to build a competitive automotive industry capable of generating exports and attracting long-term investment. Can Pakistan’s Auto Industry Finally Rebound? The sharp fall in Used Vehicle Imports has triggered optimism across Pakistan’s automotive sector. Manufacturers believe the country now has an opportunity to rebuild its industrial base and strengthen local production capabilities. While challenges such as high vehicle prices, taxes, and weak consumer purchasing power still remain, industry stakeholders see the latest trend as a major victory for domestic manufacturing. If the current momentum continues, Pakistan’s auto sector could emerge as one of the key drivers of industrial growth and economic recovery in the years ahead.

Toyota Indus Eyes Hybrid Growth in Pakistan
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Toyota Indus Eyes Hybrid Growth in Pakistan

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The Toyota Indus Corporate Briefing highlighted the company’s future strategy, pricing outlook, and rising competition from Chinese automakers in Pakistan. The company discussed its latest financial performance and shared insights about vehicle demand, localization efforts, and the future of hybrid and electric vehicles in the country. According to details shared during the briefing, Toyota Indus acknowledged that competition in Pakistan’s auto market has intensified. Chinese brands, especially the BYD Shark 6, have increased pressure on Toyota’s Hilux sales in urban markets. However, the company stated that rural demand for the Hilux remained stable despite growing competition. Toyota officials said Fortuner sales performed strongly during the year. Volumes doubled on a yearly basis, showing strong customer demand in the SUV segment. The company also explained the recent reduction in Fortuner prices. Management clarified that the move was not a temporary discount campaign. Instead, the reduction came from structural cost improvements. Officials stated that government tax reductions contributed nearly 60 to 70 percent of the total price decrease. The remaining savings came through localization improvements and lower production costs. Toyota passed these benefits directly to customers. The Toyota Indus Corporate Briefing also focused heavily on the future of electrification in Pakistan. The company said electric vehicles represent an unavoidable global transition. However, Toyota believes hybrid vehicles will gain wider acceptance in Pakistan before full electric vehicles become mainstream. Management explained that Pakistan still faces infrastructure and policy challenges related to EV adoption. Because of this, Toyota plans to focus more on hybrid technology in the short term. The company also confirmed that it plans to launch new models in different phases over the coming years. Further vehicle launches will depend on greater clarity regarding Pakistan’s National Electric Vehicle policy. Toyota shared details about its localization progress as well. The company revealed that localization levels for the Corolla, Yaris, and Corolla Cross now exceed 60 percent. Meanwhile, localization in the SUV and pickup segment, including Hilux and Fortuner, increased from 38 percent to more than 41 percent. Company officials said these improvements helped reduce production costs. Toyota transferred nearly 3 percent of the cost savings directly to consumers through lower prices. Despite growing Chinese competition, Toyota maintained confidence in its market position. Management stated that the company still holds more than 50 percent market share in most vehicle categories. The only major exception is the Corolla Cross segment, where market share stands between 25 and 30 percent because of stronger competition. Toyota also rejected the perception that its market position has weakened significantly. Officials stated that the company gained nearly 1 percent market share compared to last year. Management admitted that Toyota previously lost some customers to competing brands. However, they claimed many consumers have started returning to Toyota after trying alternative options. The company also announced fresh investment plans during the Toyota Indus Corporate Briefing. Toyota revealed an additional investment of Rs 1 billion for localization development in Pakistan. Officials described the investment as part of the company’s long term commitment to strengthening the domestic automotive industry. This latest allocation comes on top of nearly Rs 3 billion in previously approved localization investments. Toyota also discussed institutional sales and the imported used car market. According to management, government and corporate buyers together account for nearly 20 percent of total company sales. Both categories contribute equally to institutional demand. The company further noted that Pakistan imported 36,053 used vehicles between July 2025 and March 2026. However, imports dropped sharply to only 793 units in March 2026. Toyota linked this decline to disruptions caused by the US Iran conflict. For comparison, Pakistan imported more than 42,000 used vehicles during the full year of 2025. Management also expressed concern over uncertainty surrounding the used car import policy. Officials stated that the company is waiting for clear policy direction from the government. Toyota warned that current price reductions may not remain permanent. Officials said prices could rise again if production costs increase, especially after the upcoming federal budget. The company also highlighted uncertainty surrounding Pakistan’s Auto Policy, which will expire on June 30, 2026. According to Toyota, discussions between the government and the auto industry are ongoing. However, both sides have yet to finalize agreements regarding future incentives and policy support.

Pakistan Plans Toll Free Motorway Access for Electric Vehicles
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Pakistan Plans Toll Free Motorway Access for Electric Vehicles

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The federal government is preparing major reforms for Pakistan’s automobile sector under the upcoming Auto Policy 2026 to 2031. The new framework is expected to introduce fresh incentives for electric vehicles while gradually reducing long standing tariff protections in the industry. According to sources, the government plans to provide toll free access on motorways and national highways for New Energy Vehicles. These vehicles include battery electric vehicles, plug in hybrid vehicles, and fuel cell electric vehicles. Officials believe the initiative will encourage consumers to shift toward cleaner and more energy efficient transport options. The proposal forms part of broader efforts to promote sustainable mobility and reduce dependence on imported fuel. Sources said the government wants to accelerate the adoption of modern vehicle technology in Pakistan through targeted incentives and policy reforms. The expected motorway toll relief aims to make electric vehicle ownership more attractive for consumers. The upcoming policy also includes major changes to Pakistan’s traditional auto protection regime. The government plans to phase out Additional Customs Duties completely by fiscal year 2029. At the same time, Regulatory Duties will see a sharp reduction over the next several years. Officials said these duties will decrease by nearly 80 percent by fiscal year 2030. The government also plans to abolish all concessionary Statutory Regulatory Orders linked to the auto sector by 2030. These concessions have historically played a major role in protecting local manufacturers from foreign competition. Officials believe the reforms will improve market competitiveness and attract new investment into Pakistan’s automobile industry. The policy further outlines a gradual reduction in import tariffs on vehicles. Duties on Completely Built Unit vehicles currently range from 50 percent to 100 percent. Under the proposed framework, these duties will decline to between 35 percent and 75 percent over the next five years. Similarly, the government plans to lower tariffs on Completely Knocked Down units used for local vehicle assembly. Duties on CKD units for cars, SUVs, and minivans will fall from 30 percent to 20 percent during the policy period. The reforms aim to reduce the weighted average applied tariff to below 6 percent by fiscal year 2030. Officials said the policy will continue supporting domestic manufacturing despite lower tariffs. Incentives for New Energy Vehicles will remain linked to localization requirements to encourage local production and parts manufacturing. Companies seeking policy benefits will need to increase local assembly and develop domestic supply chains. The government hopes this strategy will strengthen Pakistan’s automotive sector while supporting the transition toward cleaner transport technologies. Industry experts believe the reforms could transform the local automobile market in the coming years. Lower duties and electric vehicle incentives may attract international manufacturers and increase competition in Pakistan. Analysts also believe consumers could benefit from greater vehicle variety, improved technology, and potentially lower prices in the long term. The new policy comes at a time when governments around the world are promoting cleaner mobility solutions to reduce carbon emissions and dependence on fossil fuels. Pakistan now appears ready to move in the same direction with a stronger focus on electric and hybrid transportation. The Auto Policy 2026 to 2031 is expected to define the future of Pakistan’s automobile industry as authorities push for industrial growth, foreign investment, and sustainable transportation solutions.

MINI arrives in Pakistan with its new all-electric model family
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MINI arrives in Pakistan with its new all-electric model family

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Karachi. MINI enters the Pakistani market, marking a new chapter for the brand in a country with strong long-term potential and a rapidly evolving premium mobility landscape. Introduced by BMW Group Middle East in partnership with Dewan Motors, the new generation of MINI vehicles is now available to local customers for the first time. The market entry is defined by a fully electric model portfolio, including the MINI Cooper Electric, MINI Aceman and MINI Countryman Electric. Built on a new technology platform, the new MINI family combines characteristic design, an immersive digital experience and locally emission-free mobility, tailored for urban environments and evolving customer expectations. Across the new MINI family, a strong focus is placed on individualisation and personal expression. A wide range of trims, materials and digital experience modes allow customers to configure their vehicle according to their preferences, creating a highly personalised driving environment that reflects the distinctive and expressive character of the MINI brand. At the core of the line-up, the all-electric MINI Cooper reinterprets the brand’s icon for the electric age. It compact proportions, the hallmark “go-kart feeling” and a design reduced to the essentials, enhanced by a fully digital experience centred around the circular OLED display, MINI Operating System 9 and intuitive user interaction. Positioned between the MINI Cooper and the MINI Countryman, the MINI Aceman introduces a new concept within brand’s line-up. As a fully electric crossover in the premium small car segment, it combines compact exterior dimensions with a versatile interior and a progressive design language, offering a new interpretation of urban mobility. As the largest model in the line-up, the MINI Countryman extends the brand’s offering into a more versatile and spacious segment. With increased dimensions, enhanced comfort and the availability of all-wheel drive, it combines everyday usability with long-distance capability, while maintaining the characteristic MINI driving dynamics and introducing a new level of digital experience and electrified performance. Dennis Obermeier, Head of MINI Middle East, said “MINI is seeing clear demand in Pakistan for more expressive, connected and design-led vehicles. With its new generation, the brand responds with a fully electric portfolio that integrates advanced digital technology with an intuitive user experience, while preserving the characteristic MINI driving feeling in a modern format.” MINI’s entry into Pakistan is enabled through its long-standing partnership with Dewan Motors, the official importer of BMW Group vehicles in the country since 2004. With an established presence across key cities including Karachi, Lahore and Islamabad, Dewan Motors ensures a consistent premium customer experience aligned with global BMW Group standards. For Dewan Motors, the launch represents a strategic step in the development of the premium automotive segment. Zaeem Ul Haque, Director Operations, Dewan Motors said: “The launch goes beyond product introduction. It represents our commitment to delivering a premium and locally relevant customer experience built on long-term relationships, strong retail foundations and continuous market development.” This approach is reinforced by the introduction of BMW Group’s Retail.Next concept in Pakistan. The integrated BMW and MINI showroom in Karachi create a modern, customer-centric environment, combining digital touchpoints, personalized consultation and a seamless brand experience. Designed around interaction rather than traditional retail structures, it sets a new benchmark for premium automotive retail in the country. With its fully electric portfolio, distinctive design and strong digital focus, MINI enters Pakistan at a pivotal moment introducing a few forward-looking interpretation of urban mobility that is efficient, connected and future oriented.

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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