Prices of hybrid electric vehicles have started falling across the market. Assemblers finally passed on a reduction in the general sales tax rate, nearly two weeks after the change took effect. The GST on vehicles up to 2,000cc dropped from 25 percent to 18 percent effective September 13.

Assemblers had initially delayed price adjustments following the tax change. However, new prices have now begun to emerge. Honda Atlas Cars reduced the price of its HR-V e:HEV to Rs. 9.299 million from Rs. 10.369 million. Meanwhile, the HR-V VTIS now costs Rs. 7.299 million, down from Rs. 7.799 million previously.

The company said these revised prices apply to limited stock only. Additionally, the new rates cover orders invoiced from September 25 onward. Indus Motor Company has also lowered prices across its hybrid lineup. The Toyota Corolla Cross HEV X now costs Rs. 9.729 million, a cut of Rs. 570,000.

Similarly, the standard Corolla Cross HEV is available at Rs. 9.299 million, reflecting a Rs. 550,000 reduction. These price cuts follow months of uncertainty over the industry’s applicable tax and policy framework. The Automotive Industrial Development Policy 2021 to 2026 expired on June 30, and electric vehicles previously carried an 8.5 percent GST rate under that framework.

The industry had expected a new auto policy from July 1, but authorities have not yet announced one. Assemblers say this policy uncertainty affected production planning, business decisions, and investment. Some companies, therefore, temporarily delayed vehicle invoicing during July and August.

Chery Master Director Sales and Marketing Syed Asif Ahmed said the earlier 25 percent GST had sharply reduced demand for electrified vehicles. As a result, a significant amount of inventory sat unsold as consumers waited for clarity on the tax issue. He said settling the GST rate at 18 percent could help revive sales.

Still, uncertainty remains over whether the rate could shift again under a future auto policy. He added that most vehicles from his company and other assemblers should reach buyers within the next two months. Meanwhile, Mega Motor Company, BYD’s official partner in Pakistan, announced a separate milestone. The Chinese New Energy Vehicle brand has now reached 10,000 vehicles on Pakistani roads, marking the fastest ramp-up by any new NEV entrant in the country’s automotive history.