Nexgen Auto Pvt. Ltd. has hiked up the cost of two variants of its Jaecoo J5 in Pakistan after the government announced its decision to raise the sales tax rate on hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) to 25%.
The Jaecoo J5 Comfort has been increased to Rs7,799,000 by the company in its latest price circular. The price of this product has risen from Rs6,699,000. This is an increase of Rs1.1 million.
In the same way, the Jaecoo J5 Premium has been awarded a Rs1.1 million price increase. It has now increased from its previous cost of Rs7,699,000 to Rs8,799,000.
The Jaecoo J7 Premium on the other hand has not been impacted by the latest revision, and will remain available at Rs10,499,000.
The updated pricing has been done after the sales tax rate of 25% for HEVs and PHEVs was introduced from July 1, 2026.
The new hike comes on the back of the other rising pressure on the auto sector in Pakistan, where consumers have seen a steady surge in prices of their vehicles, triggered by various factors that include taxation, duties, currency fluctuations and increased production and import costs.
Comparatively small tax hikes make a very large difference to the bottom line of a vehicle purchase, especially for those in the higher-priced hybrid category.
Nexgen’s latest price hike also comes at the heels of other key manufacturers announcing price hikes in Pakistan.
Indus Motor Company (IMC) has announced an increase in the prices of two variants of the Toyota Corolla Cross by Rs1.364 million and Rs1.314 million, respectively.
The price of Honda Atlas Cars Limited’s HR-V e:HEV has also been raised by Rs1.37 million.
Several hybrid models have seen an increase in price since the new tax regime, so people considering buying an electrified car might have to think again about their budgets.
The new hikes also demonstrate the speed at which government tax changes can impact the showroom prices and make new cars pricier for Pakistanis.