Pakistani automobile and motorcycle buyers are facing a fresh wave of price hikes as leading manufacturers raise prices across the board in response to new taxes imposed in the federal budget and the ongoing depreciation of the Pakistani rupee.
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Several auto manufacturers have increased the prices of popular models, citing rising costs of imports, increased general sales tax, and new levies introduced in the 2025-26 budget. Car prices have jumped by as much as Rs 700,000, further pushing vehicles out of reach for the average buyer.
One of the most significant hikes came from a leading assembler, which raised the price of its entry-level hatchback by Rs 150,000. The price of its premium MPV model shot up by Rs 700,000. Other manufacturers followed suit, adjusting the prices of compact cars, sedans, and SUVs to absorb the impact of higher import costs and fiscal measures.
Two-wheeler makers have also raised prices across all segments. The cost of motorcycles has increased by Rs 2,000 to Rs 6,000, adding strain on low-income and middle-class commuters who rely on bikes for daily transportation. The 18% general sales tax on two-wheelers has significantly affected affordability in this sector.
Despite these increases, import volumes of semi-knocked down (SKD) and completely knocked down (CKD) kits remain high, suggesting continued market demand. However, rising prices and reduced purchasing power are expected to slow down sales in the coming months.
The combined impact of budgetary measures and a weak rupee has further shaken consumer confidence. As affordability dwindles, many buyers are now turning to used vehicles or delaying purchases altogether, worsening the slowdown in Pakistan’s already struggling auto sector.
