Budget 2026-27: What it means for Pakistan’s auto industry 🚗
Here’s what the budget actually says.
🔹 No final auto tax structure has been announced yet. The exact FED and GST changes will only become clear once the new Auto Policy is released (expected by June 25 or July 1).
🔹 SUVs between 2000cc and 3000cc are likely to face higher Federal Excise Duty (FED). However, there is still confusion regarding whether the increase applies to all locally assembled and imported SUVs or only specific categories.
🔹 Electric Vehicles (EVs) priced above Rs. 20 million may see an increase in FED, making premium EVs more expensive.
🔹 Locally assembled (CKD) EVs remain protected for now, with no major changes announced in the budget. Industry expectations are that the upcoming Auto Policy could further support local EV manufacturing.
🔹 Many tax percentages being shared online are currently unverified. The real impact on vehicle prices will only be known after the government releases the detailed Auto Policy.
Bottom line: Don’t panic over rumors. The biggest developments for the auto sector are still to come with the upcoming Auto Policy. Stay tuned for verified updates
Good news for EV buyers! ⚡🚗
The Government of Pakistan has extended tax relief for Electric Vehicles (EVs) and Range Extender Electric Vehicles (REEVs) in Budget 2026-27, easing concerns about a potential tax hike.
This means EV and REEV prices are expected to remain unchanged, while support for Pakistan’s growing new energy vehicle sector continues. 🇵🇰🔋
Pakistan’s auto market continues to gain momentum 📈
According to PAMA, passenger car sales surged 48% YoY in May 2026, while production rose 45%. SUV & pickup sales climbed 37%, and motorcycle/three-wheeler sales increased 30%.
A strong sign of recovering consumer demand and growing mobility needs across the country. 🇵🇰🚗🏍️
EV, Hybrid or REEV in Pakistan 2026?
EVs offer the lowest running cost but need charging. Hybrids are safer for long routes with no range anxiety. REEVs give electric drive with petrol generator backup, making them a practical middle option for Pakistan’s current infrastructure.
Budget 2026 27 tax changes could also make timing your purchase very important.
EV prices may rise after Budget 2026 27.
Locally assembled EVs could see the biggest hit as sales tax may jump from 1% to 18%, while imported EVs under 50 kWh may move from 12.5% to 18%.
Imported EVs above 50 kWh may stay unchanged
Spare parts price transparency is picking up pace in Pakistan’s auto industry.
After MG, Ghandhara Automobiles has now revealed official JAC T9 parts prices
The Hyptec SSR Ultimate isn’t just butterfly doors and drama.
1,207 hp. 3-motor AWD. 1,230 Nm. 0–100 km/h in 1.9s. 2-speed gearbox. Ceramic brakes. 506 km CLTC range.
And yes, it holds a Guinness EV drift record at 213.523 km/h.
Now on display at Royal Palm.
🚨 Lahore Traffic Police arrest major e-challan defaulter after discovering 1,526 unpaid challans worth Rs. 2.09 million linked to a single CNIC.
Authorities also found 421 vehicles, rickshaws, and motorcycles registered under the individual’s name. His motorcycle has been impounded as the crackdown on defaulters intensifies.
📍 Motorists are advised to clear pending e-challans to avoid legal action, arrest, or vehicle seizure.