Pakistan's hybrid vehicle market has witnessed sharp price increases after the federal government withdrew the reduced General Sales Tax (GST) for locally assembled hybrid electric vehicles in the 2026–27 budget.

The end of the tax concession has pushed prices up by as much as Rs2.54 million, with several popular hybrid models now crossing the Rs10 million (Rs1 crore) mark.

Honda Atlas has become the latest automaker to revise its prices, increasing the price of the HR-V e:HEV from Rs8.9 million to Rs10.3 million, a jump of Rs1.3 million. The revised price came into effect on July 1, 2026, making the HR-V e:HEV one of Pakistan s latest SUVs to enter the Rs1 crore price bracket.

Earlier, Toyota also raised prices across its hybrid lineup. The Corolla Cross HEV X now costs Rs10.299 million, up from Rs8.935 million, while the Corolla Cross HEV has increased from Rs8.535 million to Rs9.849 million. Prices of petrol-powered Corolla Cross variants remain unchanged.

The withdrawal of the tax concession has also disrupted the automotive industry. Several manufacturers have reportedly suspended invoicing and deliveries of hybrid vehicles while awaiting official clarification on the applicable GST.

The reduced GST was introduced under the previous five-year automotive policy to promote cleaner and more fuel-efficient vehicles. However, with no extension announced in the 2026–27 budget, the concession expired automatically and the standard sales tax was reinstated.

The impact extends beyond Honda and Toyota, with price increases affecting nearly every locally assembled hybrid and plug-in hybrid model.

The latest revisions highlight the immediate impact of the government s tax policy, leaving buyers to pay between Rs1 million and more than Rs2.5 million extra for hybrid vehicles.