Hybrid car prices in Pakistan have started increasing after the General Sales Tax (GST) relief for locally assembled hybrid vehicles expired on June 30, 2026.
The first major price revision came from Toyota Pakistan, where Indus Motor Company increased the price of the Corolla Cross Hybrid by around Rs1.4 million. The hybrid SUV, previously priced at about Rs8.5 million, now costs over Rs10 million.
However, the company has kept the prices of the petrol variants unchanged. The base Corolla Cross petrol variant continues to retail at around Rs7.3 million, while the high-grade petrol variant remains priced at approximately Rs8 million.
A Toyota Pakistan official confirmed that only hybrid variants have been affected by the price increase following the expiry of the GST concession, while petrol models remain unaffected.
The tax relief was introduced by the federal government in 2021 through amendments to the Sales Tax Act, 1990, offering reduced GST rates for locally assembled hybrid and new energy vehicles.
Under the scheme, hybrid vehicles with engine capacities of up to 1,800cc were subject to 8.5 per cent GST, while hybrids between 1,800cc and 2,500cc were taxed at 12.75 per cent.
With the concession ending on June 30, industry experts believe the standard GST rates are likely to be restored, increasing the tax to 18 per cent for hybrids up to 1,800cc and 25 per cent for models above 1,800cc, although the government has yet to issue a fresh notification.
Financial services firm Topline Securities has also projected a significant increase in the prices of locally assembled hybrid vehicles following the expiry of the tax incentive.
Also read: Top 10 fuel-efficient cars to buy in Pakistan in 2026
