Honda City prices to jump by up to Rs1.8 Lac under NEV Levy; Check Expected Prices
Why this matters: local context for readers following news across Pakistan and the region.
ISLAMABAD – If you are planning to buy Honda City, you need to know abuout higher prices from next month as proposed levy is expected to jack up price of all variants available in Pakistan. According to estimates, the additional tax burden could raise prices by Rs1.37Lac to Rs1.78Lac, depending on model. Honda City 1.2L MT and 1.2L CVT, currently priced at Rs. 4.737 million, are expected to see an increase of Rs. 137,373, taking their prices to approximately Rs. 4.874 million. Honda City 1.5L CVT could witness a price jump of Rs. 157,731, with its expected price rising from Rs. 5.439 million to Rs. 5.597 million. Honda City 1.5L Aspire MT may become Rs. 163,821 more expensive, increasing its price from Rs. 5.649 million to Rs. 5.813 million. Honda City Aspire 1.5L LAS CVT is projected to rise by Rs. 176,001, taking its price from Rs. 6.069 million to Rs. 6.245 million. The highest increase is expected for the Honda City Aspire S 1.5L LAS CVT, which could become Rs. 178,321 costlier, pushing its estimated price to Rs. 6.327 million from the current Rs. 6.149 million. If the levy is approved and implemented, Honda City customers could see a significant increase in vehicle prices, particularly in the higher-end Aspire lineup. The revised pricing is expected to further raise the cost of vehicle ownership in Pakistan’s already expensive automotive market. The federal government has proposed new taxes on petrol and diesel vehicles in Budget 2026–27, including a New Energy Vehicle (NEV) Levy of 1% on cars up to 1300cc, 2% on vehicles between 1301cc and 1800cc, and 3% on vehicles above 1800cc. The move is expected to increase prices of several popular car models. Additional carbon-based taxes have also been proposed for larger-engine vehicles, while imported SUVs and high-displacement vehicles may face higher Federal Excise Duty (FED). Meanwhile, the carbon levy on petrol and diesel is set to rise to Rs5 per litre, potentially increasing fuel costs for motorists. The