Pakistan hybrid car tax hike drives Toyota Corolla Cross HEV price jump

The Pakistani government raised the General Sales Tax on locally assembled hybrid vehicles from a concessional rate of up to 12.5% to a uniform 25% under the Auto Policy 2026‑2031, ending the tax relief that had been in place since 2021. In response, Indus Motor Company announced that the ex‑factory price of its Toyota Corolla Cross Hybrid Electric Vehicle (HEV) models increased by roughly Rs1.3‑1.4 million. The Corolla Cross HEV X now costs about Rs10.3 million, up from Rs8.9 million, and the standard HEV is priced at Rs9.85 million, up from Rs8.54 million. Prices for the petrol‑engine variants remain unchanged. Industry analysts warn that the higher tax burden will raise the cost of ownership for consumers, could dampen demand for hybrid cars, and may push some buyers toward imported models, affecting the domestic auto sector.