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By Sabeeh Zanair :
Higher sales tax on hybrid vehicles pushes the Corolla Cross HEV lineup above Rs9.8 million
Toyota Indus Motor Company has increased the prices of its Corolla Cross Hybrid Electric Vehicle (HEV) lineup in Pakistan after the government raised the General Sales Tax (GST) on hybrid vehicles from 8.5% to 25% under the country’s latest fiscal measures.
The revised prices, which took effect immediately, have increased the cost of both Corolla Cross hybrid variants by more than Rs1.3 million, making them significantly more expensive for prospective buyers.
The Toyota Corolla Cross 1.8 HEV is now priced at Rs9,849,000, compared with its previous ex-factory price of Rs8,535,000. This represents an increase of Rs1,314,000.
Meanwhile, the Toyota Corolla Cross 1.8 HEV X now costs Rs10,299,000, up from Rs8,935,000, marking a price increase of Rs1,364,000.
New Corolla Cross HEV Prices
- Corolla Cross 1.8 HEV
- Previous Price: Rs8,535,000
- New Price: Rs9,849,000
- Increase: Rs1,314,000
- Corolla Cross 1.8 HEV X
- Previous Price: Rs8,935,000
- New Price: Rs10,299,000
- Increase: Rs1,364,000
GST increase drives price adjustment
Toyota said the price revision reflects the government’s decision to substantially increase the GST applicable to hybrid electric vehicles. The higher tax has raised the overall cost of the vehicles, prompting automakers to revise retail prices.
The tax changes were introduced as part of Pakistan’s new federal budget, which includes measures aimed at increasing revenue. While conventional vehicles continue to be taxed under different rates, hybrid models have been among the most affected by the latest revisions.
Industry analysts say the increase could slow demand for hybrid vehicles, which had gained popularity in recent years because of their improved fuel efficiency and lower running costs compared with conventional petrol-powered SUVs.
Buyers face higher ownership costs
The latest price revision comes at a time when Pakistan’s automotive market is gradually recovering after a prolonged slowdown caused by import restrictions, supply chain disruptions and high financing costs.
However, the higher prices are expected to make hybrid SUVs less affordable for many consumers. Buyers may also face increased overall ownership costs due to higher registration fees and taxes, which are calculated as a percentage of a vehicle’s value.
Dealers believe some customers may delay purchases or consider alternative models as a result of the sharp increase.
Hybrid market under pressure
Toyota’s Corolla Cross has been one of Pakistan’s best-known locally assembled hybrid SUVs, competing with imported crossover models in the growing electrified vehicle segment.
Despite the higher upfront cost, hybrid vehicles remain attractive to many motorists because they consume less fuel and produce lower emissions than traditional petrol-powered vehicles. However, industry observers warn that higher taxation could slow the adoption of cleaner vehicle technologies if prices continue to rise.
Toyota’s latest announcement follows similar price adjustments by several automakers in Pakistan as manufacturers respond to changes in taxation, exchange rates and production costs. Further revisions across the industry are expected if additional fiscal measures affect vehicle manufacturing or imports in the coming months.
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