Hyundai Elantra, Tucson, Santa Fe prices reduced by up to Rs 1.4 million after tax relief

ISLAMABAD – Hybrid car buyers in Pakistan have been given price relief with Hyundai slashing prices by Rs 1.403 million following the government’s dramatic reduction in sales tax on locally assembled hybrid vehicles.

The price cut comes after the Federal Board of Revenue (FBR) reduced the sales tax on locally assembled hybrid vehicles from 25% to 18% on September 13, 2026. Hyundai has now passed on a significant portion of the tax relief to consumers, reducing its prices. Per line-ups.

The price of the Santa Fe Signature has come down by Rs 1.403 million, from Rs 16.123 million to Rs 14.720 million. The Santa Fe Smart has also received a seven-figure price cut, from Rs 1.316 million to Rs 13.258 million from Rs 14.574 million. The shortage isn’t limited to Hyundai’s larger SUVs. The Tucson Hybrid Signature is now Rs 801,000 cheaper at Rs 13.300 million compared to its previous price of Rs 14.101 million.

The Tucson Hybrid Smart is down by Rs 724,000 to Rs 12.202 million, while the Elantra Hybrid is down from Rs 639,000 to Rs 10.761 million. Hyundai’s announcement comes at a time when the government’s revised tax policy is starting to reshape Pakistan’s hybrid vehicle market.

FBR’s decision to reduce sales tax from 25% to 18% applies to locally assembled hybrid vehicles with engine capacity up to 2000cc. The move is likely to benefit buyers of several popular hybrid models, including the Toyota Corolla Cross, Hewlett-Packard H6, Hewlett-Packard Jolyon, Hyundai Elantra Hybrid, Kia Sportage LHEV, Honda HR-VE:HEV, MGHS and Jaco J7PHEV.

But the tax relief comes with clear limitations. The reduced rate is limited to qualifying locally assembled vehicles. Hybrids and fully imported CBU vehicles with engines above 2,000cc are not eligible, meaning buyers of larger engines or imported hybrids should not expect relief in the tax-driven price.

The latest cuts come after a tumultuous period in Pakistan’s tax on hybrid vehicles. The earlier concessional tax rate of 8.5 percent was withdrawn, bringing the sales tax on hybrid vehicles to 25 percent. This increase contributed to considerable pricing pressure in the hybrid market and made many models significantly more expensive for consumers. The new 18% rate reverses part of this increase and gives carmakers room to reassess their prices.

However, a tax cut does not automatically guarantee a uniform price cut across brands. Manufacturers ultimately decide how much savings to pass on to consumers, meaning the actual benefit can vary from one model to another.

Hyundai’s latest price list shows what this relief could look like in practice, with a reduction of Rs 639,000 to Rs 1.403 million.

Which cars will be cheaper in Pakistan after FBR’s hybrid tax cut?

The post Hyundai Elantra, Tucson, Santa Fe prices reduced by Rs 1.4 million after tax relief appeared first on Daily Pakistan News

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