Hybrid vehicles could become more affordable in Pakistan as the government’s proposed Auto Policy 2026–31 seeks to significantly reduce import duties on hybrid vehicles over the next five years.
According to details, the final draft of the new auto policy has been prepared and submitted to the prime minister for approval.
Under the proposed policy, duties on several categories of hybrid vehicles would be gradually reduced over five years. For hybrid cars above 1,800cc, the duty is proposed to fall from 50% to 30%.
A similar reduction, from 50% to 30%, has been proposed for hybrid vehicles between 1,501cc and 1,800cc. The draft also proposes cutting duties from 50% to 30% on hybrid vehicles in the 851cc–1,000cc and up to 800cc categories.
If implemented, these reductions could lower the import cost of hybrid vehicles, potentially making them more affordable for buyers. However, the actual impact on retail prices would depend on factors including exchange rates, other taxes and duties, and whether importers pass the savings on to consumers.
The draft also proposes reducing duties on hybrid trucks from 30% to 15%, on hybrid commercial vehicles from 60% to 30%, and on hybrid buses from 30% to 15%.
The proposed Auto Policy 2026–31 is aimed at creating a more favourable environment for investment, local vehicle production and the adoption of modern automotive technologies in Pakistan.
