Hyundai Nishat Motor has announced monumental price reductions across its hybrid vehicle lineup in Pakistan following the government’s move to reduce the sales tax on hybrid electric vehicles (HEVs) from 25% to 18%.

Following the tax revision, the Hyundai Elantra Hybrid has announced a price cut of Rs639,000, bringing its price down from Rs11.4 million to Rs10.761 million. The Tucson Hybrid Smart FWD is now cheaper by Rs724,000, with its price reduced to Rs12.202 million, while the Tucson Hybrid Signature AWD has seen a reduction of Rs801,000, now available at Rs13.3 million.

A huge price reduction is witnessed by Hyundai’s Santa Fe Hybrid lineup, with the Santa Fe Hybrid Smart FWD receiving a cut of Rs1.316 million, and the Santa Fe Hybrid Signature AWD becoming cheaper by Rs1.403 million, bringing prices down to Rs13.258 million and Rs14.72 million, respectively.

The move is expected to promote hybrid vehicle adoption as Pakistan’s auto sector shifts towards more fuel-efficient mobility solutions.

Govt announces sales tax exemption for locally manufactured hybrid cars

The federal government has taken an important decision regarding locally produced hybrid electric vehicles, granting sales tax exemption to vehicles with engines of up to 2,000cc.

The Ministry of Finance has amended the sales tax rules concerning hybrid electric vehicles, under which locally produced hybrid vehicles with engines of up to 2,000cc will be included in the sales tax exemption.

The Ministry of Finance has also issued a notification regarding the exemption of hybrid vehicles from sales tax.

According to the notification, the new amendment relating to sales tax will take effect immediately.

New auto policy includes proposals for a phased reduction in duties on the import of hybrid vehicles.

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