The newly announced Pakistan Budget 2025–26 has directly impacted car prices, with Hyundai vehicles among those affected by fresh tax measures. While rumors of a steep GST hike on hybrid models caused initial panic, official documents now confirm selective tax increases—mainly on petrol-powered and large engine vehicles
1. GST Rate Normalized for Hybrids
- The federal Budget FY 2025‑26 initially suggested increasing Hybrid Electric Vehicle (HEV) GST from 8.5% to 18%. Reports indicated steep price hikes—for example, Hyundai Elantra Hybrid’s price jumped by ~₨849,309 to ₨10,549,309.
- However, official Finance Bill documents clarify that GST on HEVs remains unchanged:
- Up to 1800 cc: 8.5%
- 1801–2500 cc: 12.75%
and these rates stay in effect until June 30, 2026 .
2. New ICE Car Levy
- A new “green levy” (ICE环保税) was introduced for internal combustion engine vehicles, ranging between 1–3% of the vehicle’s value depending on engine size .
- Small‑engine (<1300 cc) and commercial vehicles face 1%, mid‑range (1300–1800 cc) face 2%, and large‑engine (>1800 cc) face 3%.
3. Increased GST on Sub‑850 cc Petrol Cars
- GST for smaller petrol cars (<850 cc) rose from 12.5% to 18%, affecting locally assembled models like the Alto—buyers could see ₨160k–186k extra in cost .
4. Fuel Carbon Levy
- A phased carbon levy of ₨2.5 per liter on petrol, diesel, and furnace oil in FY26, increasing to ₨5 in FY27 .
What It Means for Hyundai Buyers
- Hybrids: No GST hike now—rates remain at 8.5%. Price increases reported were preliminary speculations, not finalized .
- ICE Models: Subject to new green levy, likely raising prices by 1–3% on the factory cost.
- Small Petrol Cars: Not directly from Hyundai’s lineup (mostly larger sedan/SUV), but the trend shows rising taxes on entry-level models.
- Fuel Costs: All models will see higher running cost due to increased fuel levies.
Hyundai’s Price Lock Offer (Pre-Budget Strategy)
To counter price uncertainty, Hyundai Nishat launched a “Price Lock” deal valid until June 27, 2025.
- Models included:
- Elantra Hybrid (₨9.7M),
- Santa Fe Hybrid (Smart ₨12.49M, Signature ₨13.899M),
- Sonata series.
- Booking requires full payment by deadline to secure current pricing; after cutoff, new budget-driven prices apply.
Summary of Key Price Effects
| Model Type | Tax Impact | Effective Change |
|---|---|---|
| Hyundai HEVs | GST remains at 8.5% | No change in immediate pricing |
| Hyundai ICE Cars | +1–3% green levy on ex-factory price | Slight price increase expected |
| Hyundai Petrol Cars | +carbon levy on fuel | Higher running cost |
| Santa Fe / Tucson HEVs | Price Lock Offer available till Jun 27 | Buyers can lock prices now |
Quick Buyer Tips
- Oxford the Price Lock Deal: Fully pay by June 27 to avoid post-budget increases.
- Hybrids Are Safe—for Now: No GST hike confirmed, rates remain favorable.
- Factor ICE Levy In: Expect marginal ex-factory price increases for gasoline/diesel models.
- Budget for Fuel: All vehicle owners should plan for the added carbon levy on fuel.
Hyundai customers can breathe easy on hybrid models—GST stays at 8.5%. However, hybrid buyers should act fast to capitalize on the price‑lock offer before June 27. Petrol and diesel‑powered Hyundai owners should anticipate marginal price increases due to the green levy and higher fuel costs. Overall, while the Budget creates a mild inflationary pressure on prices, hybrids maintain their tax‑efficiency advantage—for now.
Read More: How Pakistan’s Budget 2025–26 Affects Kia Car Prices
