New auto policy, petrol vehicle prices likely to drop by up to Rs 1 million

A significant reduction in the prices of locally manufactured petrol-powered vehicles is expected, following a decrease in Federal Excise Duty (FED) and Customs Duty under the new auto policy approved by the government. According to the documents, prices for vehicles with varying engine capacities could drop by amounts ranging from PKR 375,000 to PKR 1 million.

New Prices for Small Petrol Vehicles

The documents indicate that the price of a locally manufactured petrol vehicle with an engine capacity of up to 658cc is expected to decrease by PKR 375,000. Consequently, its price will fall from PKR 3,220,000 to PKR 2,845,000.

Similarly, the price of a vehicle with an engine capacity of up to 998cc will see a reduction of PKR 440,000, bringing its price down from PKR 4,270,000 to PKR 3,830,000.

Petrol SUVs and Jeeps to Become More Affordable

Under the new policy, price reductions are also expected for vehicles with larger engine capacities. A petrol SUV with an engine capacity of up to 1496cc will become cheaper by PKR 740,000, with its price dropping from PKR 6,060,000 to PKR 5,320,000.

Meanwhile, the price of a petrol SUV with an engine capacity of up to 1498cc will decrease by PKR 280,000, resulting in a new price of PKR 9,160,000. The current price for this vehicle is PKR 9,440,000.

According to the documents, the largest price reduction—amounting to PKR 1 million—is expected for a locally manufactured petrol jeep with an engine capacity of up to 1598cc. As a result, its price will decrease from PKR 12.1 million to PKR 11.1 million. 

Proposed reduction in vehicle price