In response to the carbon levy and increased sales tax introduced in the 2025-26 federal budget, several automobile manufacturers in Pakistan have started transferring the added costs to consumers from July 1. Others, however, are either absorbing the cost themselves or delaying price changes until after Ashura.
An official from MG Pakistan confirmed the company would not raise prices, choosing instead to absorb the new levy. Similarly, the assembler of Haval vehicles announced no changes in pricing for now.
The carbon levy, also known as the NEV adoption levy, is now being applied at different rates: 1% on engines under 1300cc, 2% on 1300cc to 1800cc, and 3% on engines above 1800cc-all calculated on the invoice price, which includes duties and taxes.
Pak Suzuki Motor Company Ltd (PSMCL) has increased prices across its lineup by Rs18,810 to Rs186,000. New prices of Alto VXR, VXL, and AGS are Rs2.994m, Rs3.166m, and Rs3.326m, a raise of of Rs167,861, Rs177,480, and Rs186,446, respectively.
In the upgraded Suzuki Cultus range, the VXR, VXL, and AGS models are now costing Rs4.089m, Rs4.359m, and Rs4.591m, up by Rs40,490, Rs43,160, and Rs45,460, respectively.
New prices of Suzuki Swift GL MT, GL CVT, and GLX CVT now retail at Rs4.460m, Rs4.605m, and Rs4.766m, compared to Rs4.416m, Rs4.560m, and Rs4.719m earlier.
Suzuki Every VX and VXR saw increase of Rs163,230 and Rs166,200, reaching Rs2.912m and Rs2.965m, respectively. Ravi pickup and its without-deck variant’s new price is Rs1.975m and Rs1.899m, up by Rs19,560 and Rs18,810.
In a statement, the PSMCL clarified that the revised prices include FED, sales tax, and carbon levy but exclude advance income tax.
Lucky Motor Corporation increased prices of various KIA models from Rs95,000 to Rs700,000 citing rupee depreciation, rising international freight charges, and the carbon levy.
The Picanto AT, Stonic EX Plus, and EX’ new prices are Rs4.090m, Rs5.999m, and Rs4.862m after respective increases of Rs150,000, Rs499,000, and Rs95,000.
Similarly, the Sportage L Alpha, L FWD, and L HEV have seen hikes of Rs400,000 to Rs600,000, now priced at Rs8.899m, Rs10.499m, and Rs11.599m. The Sorento 3.5L V6 now costs Rs13.899m, up by Rs400,000, while its other variants-3.5L V6 EMI, HEV FWD, HEV AWD EMI, HEV AWD, and HEV AWD EMI-range from Rs14.399m to Rs17.199m, marking increases of Rs400,000 to Rs700,000. The Kia Carnival is now priced at Rs18.2m, up by Rs700,000.
Following the competitors, the Atlas Honda Ltd (AHL) has raised the prices of various motorcycles by Rs2,000 to Rs6,000 with flagship models, the Honda CD 70 and CG-125, now costing Rs159,900 and Rs238,900, respectively.
Similarly, the United Auto Industries has also shot up the prices of several two-wheeler models following the imposition of 18pc GST and the NEV levy. The US-70cc (standard), Self Start, Alloy Rim, and Alloy Rim with Self Start models are now priced at Rs111,000, Rs122,000, Rs121,000, and Rs132,000, compared to Rs93,182, Rs102,411, Rs101,572, and Rs110,801 previously.
Despite rising prices, demand for bikes and two-wheelers is expected to stay strong. A sharp rise in imports of parts and kits by assemblers supports this trend. According to the Pakistan Bureau of Statistics (PBS), the import bill for semi- and completely knocked-down kits by car assemblers rose by 41pc to $950m during July-May FY25, from $676m in the same period last year. Imports of two-wheeler parts increased by 16.5pc to $43m from $37m during 11MFY24.