The recently announced Pakistan Budget 2025–26 has brought significant changes to car prices, especially for Kia vehicles. With the introduction of new green taxes, a higher GST rate, and revised customs duties, both petrol and hybrid models have seen major price shifts. Buyers are now facing a mixed landscape—some Kia variants dropped by over Rs 1.5 million, while others surged nearly Rs 1.4 million.
1. New “Green Tax” Levied on ICE Vehicles
The federal budget introduced a Green Tax on petrol and diesel cars to support a national EV fund.
- Engine <1300 cc: 1% of ex-factory price
- 1300–1800 cc: 2%
- 1800 cc: 3%
This tax is charged at the source and passed on to consumers via higher showroom prices.
2. GST Increase on Hybrids & Small Cars
The government raised GST from 12.5–15% to 18% across the board.
Hybrid models like Kia’s Sportage L HEV and Sorento HEV have seen sharp surges in pricing—up by Rs 0.9–1.4 million.
3. Clear Price Drops in Petrol Variants
Conversely, locally assembled petrol models have benefited from reduced tariffs (regulatory duties and ACD).
Kia Stonic, for example, saw a nearly Rs 1.5 million (≈ 24%) price decrease.
Kia Sorento petrol variants dropped around Rs 163 000–187 000
Kia-Specific Price Movements
Kia Picanto
- Price increase: Automatic variant ex-factory now Rs 3.94 million, up Rs 90 000 since May 1, 2025.
- This rise reflects both inflation and updated government duties—even small-cars lost their previous GST concession.
Kia Stonic
- Biggest beneficiary: Petrol Stonic saw a Rs 1.5 million (≈ 24%) price drop.
- Government’s tariff reliefs clearly helped this compact crossover.
Kia Sportage L
- Hybrid version: HEV saw a hike to Rs 11.96 million, up nearly Rs 0.96 million post-GST hike.
- Petrol variants: Price was cut by up to Rs 1.85 million, e.g. HEV to Rs 10.999 million from Rs 12.85 million.
Kia Sorento
- Hybrid variants:
- FWD HEV: now ~Rs 15.99 million, up ~Rs 1.29 million
- AWD HEV: ~Rs 17.40 million, up ~Rs 1.40 million
- Petrol variant: Price is down by ~Rs 163 000–187 000
Final Price Snapshot
| Model / Variant | Before Budget | After Budget | Net Change |
|---|---|---|---|
| Picanto AT | Rs 3.85 M | Rs 3.94 M | ↑ Rs 0.09 M (+2.3%) |
| Stonic Petrol | ~Rs 6.3 M (est.) | ~Rs 4.8–5.25 M | ↓ ~Rs 1.5 M (–24%) |
| Sportage L HEV | Rs 10.999 M | Rs 11.962 M | ↑ Rs 0.96 M (+8.7%) |
| Sportage L Petrol | Rs 12.85 M | Rs 10.999 M | ↓ Rs 1.85 M |
| Sorento HEV FWD | Rs 14.7 M | Rs 15.99 M | ↑ Rs 1.29 M |
| Sorento HEV AWD | Rs 15.999 M | Rs 17.399 M | ↑ Rs 1.40 M |
| Sorento Petrol | ~Rs 13.5–16 M | ~Rs 13.337–15.813 M | ↓ Rs 0.163–0.187 M |
What It Means for Buyers
- Hybrids have become notably costlier due to GST uplift—dampening affordability of models like Sportage HEV and Sorento HEV.
- Petrol-powered cars are more accessible now, thanks to duty reductions and no Green Tax surcharges—ideal for budget-conscious buyers.
- Small cars like Picanto have seen moderate hikes, but remain practical and affordable.
- Consider fast-tracking orders or fully paying before changes: Kia applied price protection up to April 30 for Picanto
Tips Before You Buy
- Act quickly if buying petrol Kia models—savings are significant post-Budget.
- Avoid HEV variants unless fuel savings long‑term justify the upfront cost.
- Book early—before any future price escalations tied to currency or global market shifts.
- Compare total ownership cost, including higher fuel, carbon levies, and potential EV incentives.
Pakistan’s Budget 2025–26 reshaped the automotive sector: hybrids penalized, petrol cars rewarded, and small-city cars like Picanto adjusting moderately. For Kia, that means a strategic shift—petrol models are now more competitively priced, while HEVs have become premium offerings.
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