These Are the Expected Reduced Prices of All Cars in Pakistan

The all-new auto policy has been a bearer of gifts and good news for automakers, both new and old.

With the intent to promote the sales and purchases of smaller and more environmentally friendly vehicles, the government has announced a number of duties and tax rate reliefs, so as for all automakers to begin manufacturing and selling cars with engine displacement up to 1000cc, hybrid vehicles, and electric vehicles (EVs) in Pakistan.

However, the incentives are not just limited to EVs and 1000cc vehicles. The government has also reduced Federal Excise Duty (FED) by 2.5 percent for vehicles with an engine displacement over 1000cc. The FED rates, in particular, have been impacted as follows:

• For 660cc to 1000cc vehicles, the FED has gone down from 2.5 percent to 0 percent. The said segment also gets a concession of 4.5 percent on the General Sales Tax, which implies that the on-ground price discount for the said segment should be slightly less than 7 percent.
• For 1001cc to 2000cc vehicles, the FED has gone down from 5.0 percent to 2.5 percent.
• For vehicles over 2000cc, the FED has gone down from 7.5 percent to 5 percent.

The said concessions are likely to have a direct impact on the vehicle prices across the board in Pakistan. For vehicles with engine displacement over 1000cc, the 2.5 percent reduction in the FED rates is likely to result in a price discount of up to 2.33%-2.38%.

With that said, here are the expected reduced prices of all locally assembled passenger vehicles:

Pak-Suzuki Motor Company:

Toyota Indus Motors:

Honda Atlas Cars:

KIA Lucky Motors:

Hyundai Nishat:

Master Changan Motors:

Al-Haj Proton:

Morris Garages Pakistan:

United Motors:

Prince-DFSK:

Haval:

Isuzu:

Verdict

Bear in mind that these are only the expected prices and none of the automakers have announced any price reduction just yet. However, with the reduction of FED and GST on the imports of CKD kits of all vehicles (just the FED on vehicles with engines bigger than 1000cc), along with a reduction in ACD and reduced taxes on parts manufacturers, the production costs of these vehicles should be reduced significantly and should have a trickle-down effect on the price reduction as well.

With the said concessions in place for small vehicles, it is being speculated that there is set to be a huge influx of new small and hybrid vehicles in the market, which certainly bodes well for the Pakistani auto industry.

More competition in the market will likely give rise to the culture whereby the automakers will try to outdo each other by offering desirable and better-quality products to grab the lion’s share in the market.

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