Expected Electric, Hybrid Car Prices in Pakistan after Budget 2026–27

ISLAMABAD – Pakistan’s fast-growing electric and hybrid vehicle market may be heading toward turning point as Budget 2026–27 approaches. After a period of rising adoption driven by high fuel prices and attractive tax incentives, the landscape could shift if proposed changes to GST are approved. Recent reports suggesting possible rollback of relief, buyers who recently saw EVs and hybrids as cost-saving alternatives may soon face a much higher entry price, reshaping demand across new-energy vehicle segment. The country is reportedly evaluating significant changes to its tax policy for electric and hybrid vehicles in the upcoming Budget 2026–27, a move that could reshape the country’s emerging new-energy vehicle market. The government may increase General Sales Tax (GST) on electric vehicles (EVs) from the current concessional rate of around 1% to the standard 18% slab. Hybrid vehicles, which currently benefit from comparatively lower taxation in the range of 8% to 8.5% depending on engine capacity, could also be brought up to 18%, while larger-engine variants may face rates as high as 25%. If implemented, the revision would alter on-road pricing across multiple segments, particularly in the mid-range and premium hybrid and EV categories that have recently gained traction in Pakistan due to rising fuel costs and improved availability of imported models. The price impact could be substantial. Hybrid SUVs such as the Toyota Corolla Cross, Haval Jolion HEV, Haval H6 (HEV and PHEV), Hyundai Tucson Hybrid, Hyundai Santa Fe Hybrid/PHEV, and MG HS PHEV could see notable increases in ex-factory and on-road prices. Similarly, the EV segment, including models like the JMEV EV3, BYD Atto 3 and Atto 2, MG 4, MG ZS EV, Dongfeng Vigo E, BYD Seal, and BYD Sealion 7, may also experience steep upward revisions if the proposed GST alignment is approved. For context, a vehicle currently priced at around Rs. 8 million could potentially become more expensive by over Rs. 1 million after ta