Petrol vehicle prices in Pakistan may fall by up to Rs1 million under the new auto policy due to cuts in customs duty and federal excise duty.
The government has decided to reduce vehicle prices under the new auto policy on the special instructions of Prime Minister Shehbaz Sharif.
According to the policy document, cuts in federal excise duty and customs duty may make petrol cars cheaper by up to Rs1 million.
How much will petrol car prices decrease?
Locally manufactured petrol cars with engine capacity of up to 658cc may become Rs375,000 cheaper. Their price is expected to fall from Rs3.22 million to Rs2.845 million.
Similarly, the price of petrol cars with engine capacity of up to 998cc may drop by Rs440,000. Their new price is expected to be Rs3.83 million instead of Rs4.27 million.
The document also proposes a price cut of Rs740,000 for petrol SUVs with engine capacity of up to 1,496cc. Their price may decrease from Rs6.06 million to Rs5.32 million.
Petrol SUVs with engine capacity of up to 1,498cc may become Rs280,000 cheaper. Their price is expected to fall from Rs9.44 million to Rs9.16 million.
Meanwhile, petrol jeeps with engine capacity of up to 1,598cc may see the biggest price reduction of Rs1 million. Their price may drop from Rs12.1 million to Rs11.1 million under the proposed changes.
PM Shehbaz approves draft of new auto policy 2026-31
According to sources, officials from the Ministry of Law briefed the prime minister on the draft policy. After the briefing, he directed officials to present it to the federal cabinet.
The new auto policy proposes keeping the prices of locally made and imported hybrid cars balanced.
The policy also proposes making a certificate of validity mandatory for imported vehicles.
Sources said the policy will move towards implementation after the federal cabinet gives its final approval.
