Hybrid Car Prices Slashed by Millions After GST Cut to 18pc

KARACHI:Car assemblers have reduced the prices of hybrid vehicles by hundreds of thousands of rupees following the reduction in the General Sales Tax (GST) rate from 25 percent to 18 percent.

Honda Atlas Cars has reduced the price of the HR-V e:HEV from Rs10.369 million to Rs9.299 million, representing a reduction of Rs1.07 million. The price of the HR-V VTi-S has also been cut from Rs7.799 million to Rs7.299 million.

According to Honda, the revised prices will remain applicable for a limited period and limited stock. The new prices will apply to all orders invoiced on or after September 25.

Indus Motor Company has reduced the price of the Toyota Corolla Cross HEV X by Rs570,000, bringing its new price to Rs9.729 million. The price of the Corolla Cross HEV has also been reduced by Rs550,000 to Rs9.299 million.

Syed Asif Ahmed, Director Sales and Marketing at Chery Master, said the reduction in GST from 25 percent to 18 percent was expected to improve vehicle sales.

He said the 25 percent GST rate had significantly affected demand for vehicles, prompting consumers to postpone their purchases while waiting for the government to make a decision on the tax rate.

The latest price reductions are expected to provide some relief to consumers and could support a recovery in demand for hybrid vehicles in the local automobile market.