Here’s How Much Vehicle Prices Are Expected to Drop Under New Auto Policy

Pakistan's proposed Auto Policy 2026-31 could bring significant cost reductions throughout a number of vehicle categories, with some cars potentially becoming more than 20% cheaper while others may see rate increases.

Key points

• Toyota Recalls Over 100, 000 Vehicles Over Fire Risk Oct 22, 2026 12: 54 pm.
• Kashmir Chowk Underpass to Open Shortly Oct 21, 2026 9: 38 pm.
• While higher-priced BEVs may see reductions of around 8%, battery electric vehicles (BEVs) with import values below $15, 000 could become approximately 22% cheaper.
• The administration additionally intends to reduce tariffs on localized completely knocked-down (CKD) parts from 25% to 15% by fiscal year 2031.
• Toyota Yaris Could Obtain Cheaper Under New Automotive Policy.

Preliminary industry estimates suggest automakers could reduce conventional petrol car rates by approximately 8% to 10% and hybrid electric vehicle (HEV) costs by around 9%. Plug-in hybrid electric vehicles (PHEVs) could see even larger reductions, exceeding 20%. Suzuki Alto Cost Anticipated to Drop Under New Auto Policy.

Nevertheless, range-extended electric vehicles (REEVs) could become approximately 3% more expensive under the proposed tax structure. According to Topline Securities, the latest draft retains the 1% general sales tax (GST) on BEVs but proposes 9% for PHEVs and 6% for REEVs.

While the earlier policy imposed tax rates ranging from 8.5% to 12.75% on PHEVs, the previous draft proposed a uniform 1% GST on all new energy vehicles (NEVs). Toyota Yaris Could Obtain Cheaper Under New Automotive Policy.

Meanwhile, the administration additionally intends to reduce tariffs on localized completely knocked-down (CKD) parts from 25% to 15% by fiscal year 2031. Topline Securities cautioned that the tariff reduction could hurt local auto-parts manufacturers. Nevertheless, intense competition could encourage automakers to pass the savings on to consumers.

Meanwhile, expectations of lower rates could prompt buyers to postpone purchases, potentially slowing vehicle sales and creating uncertainty for automakers holding existing inventory. Stay Connected with ProPakistani.

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Kashmir Chowk Underpass to Open Shortly Oct 21, 2026 9: 38 pm. Cars to Obtain Cheaper Oct 21, 2026 7: 36 pm.

For now, here's How Much Vehicle Prices Are Expected to Drop Under New Auto remains the part of the story worth watching, and further updates are likely as more details are confirmed.