Pakistan’s automobile industry is expected to undergo a major transformation in the coming years, according to reports today.
The electric and hybrid vehicles are continuing to enter the Pakistani market. These are gradually replacing traditional petrol powered cars.
New cars to be introduced in Pakistan
According to industry data, around 23 new vehicle models are expected to be launched in Pakistan between June and December 2026. Out of these, 20 vehicles will feature some form of electric technology.
Nearly 87 per cent of the new models will be electric, hybrid, or range extended electric vehicles.
Experts say that the Chinese automobile companies are expanding their presence in Pakistan through partnerships with local firms. It will also help to drive the growth of electric vehicles in the country.
Auto industry expert Shafiq Ahmed Sheikh said this shift began under the Auto Industry Development and Export Policy 2021-26.
He added that the upcoming Auto Policy 2026-31 is expected to further accelerate the transition.
The government is promoting the gradual electrification of the transport sector to reduce dependence on imported oil and LNG. This could save around $4.5 billion annually.
The government is also offering various incentives to encourage the adoption of electric vehicles.
Pakistan budget may increase taxes on solar panels, hybrid cars
Pakistan’s upcoming federal budget may bring higher taxes on solar panels and hybrid vehicles, reports say today. This could make clean energy systems and fuel efficient cars more expensive for consumers.
According to a budget preview by Topline Securities, the government is considering increasing the General Sales Tax (GST) on solar panels. The rate may rise from 10 per cent to 18 per cent in the 2026 to 2027 budget.
The move is expected to increase government revenue. However, experts say it may slow down the growing use of solar energy in Pakistan.
