Pakistan hybrid vehicle prices slashed after GST cut

KARACHI: After a delay of nearly two weeks, Pakistani assemblers have begun lowering prices for hybrid electric vehicles (HEVs) following the reduction in general sales tax (GST) on vehicles up to 2,000cc, from 25 per cent to 18pc, effective Sept 13.

Honda Atlas Cars Ltd (HACL) has revised the prices of the HR-V e: HEV and HR-V VTIS to Rs9.299 million and Rs7.299m, down from Rs10.369m and Rs7.799m respectively. The company said the new prices are for a limited time and on limited stock, and will apply to all orders invoiced on and after Sept 25.

Indus Motor Company (IMC) has also passed on the cut, reducing the Toyota Corolla Cross HEV X and Corolla Cross HEV to Rs9.729m and Rs9.299m — cuts of Rs570,000 and Rs550,000 respectively, according to a company circular.

The 25pc GST rate had sharply depressed demand, leaving assemblers with unsold stock of electrified vehicles until mid-September as buyers waited for clarity. Syed Asif Ahmed, Chery Master’s director of sales and marketing, said the move could revive sales, adding that most vehicles from his company and other assemblers will be delivered in the next two months.

Separately, Mega Motor Company (MMC), BYD’s official partner in Pakistan, announced on Friday that BYD had reached 10,000 vehicles on Pakistani roads — claimed as the fastest ramp-up by a new-entrant new-energy-vehicle brand in the country’s automotive history.

Assemblers remain uncertain about the new auto policy, which was expected from July 1 after the expiry of the Automotive Industrial Development Policy 2021-26 on June 30 but has yet to be announced.