Toyota Car Prices Surge in Pakistan After NEV Levy: Full Breakdown and What Buyers Should Know
By Sumeet Hameed | July 12, 2025
Car buyers in Pakistan are now facing a steep hike in prices if they wish to purchase a brand-new Toyota. From July 1, 2025, the Indus Motor Company (IMC), the local assembler and distributor of Toyota vehicles in Pakistan, has officially raised the prices of its entire lineup of cars and SUVs. This move follows the introduction of the NEV Levy—a new tax included in the Federal Budget for the fiscal year 2025–26, aimed at encouraging the adoption of eco-friendly vehicles.
While this policy has been presented as an environmental initiative, it has directly impacted the affordability of traditional petrol and diesel vehicles. As expected, Toyota has responded swiftly by adjusting its prices upward, joining other automakers like Honda, Suzuki, and Changan, which have also revised their price lists.
Let’s dive into what this new price hike means for car buyers in Pakistan, explore the reasons behind the increase, and review the updated prices of some of Toyota’s most popular models.
Why Have Toyota Prices Increased in Pakistan?
The core reason behind this sudden price revision is the government’s decision to impose a new National Environmental Vehicle (NEV) Levy. This levy is a form of taxation targeted at internal combustion engine (ICE) vehicles—specifically those running on petrol or diesel. According to officials, the main aim of this policy is to reduce carbon emissions and push consumers toward greener alternatives like hybrid and electric vehicles (EVs).
Although the intention may be progressive, the immediate effect is financial pain for the average Pakistani who relies on conventional fuel vehicles due to the limited availability and higher costs of EVs and hybrids in the local market.
Who Will Be Affected by the Price Increase?
The new prices are applicable to all bookings made on or after July 1, 2025. Customers who had already booked their vehicles and paid the full amount before June 30 are exempted from the increase. However, if a buyer made a booking but failed to clear the complete payment before the cut-off date, they will have to bear the updated cost.
Toyota has also clarified that the ex-factory price—the official price of the vehicle leaving the factory—does not include additional charges such as freight, insurance, registration, and withholding tax. These extra costs will be added on top of the revised prices, further increasing the total outlay for customers.
How Much Have Toyota Prices Increased?
Depending on the model, Toyota’s prices have gone up by anywhere between Rs. 49,000 to Rs. 600,000. Here’s a closer look at the updated prices of some of the most popular Toyota cars in Pakistan:
| Model | Variant | Old Price (PKR) | New Price (PKR) | Increase (PKR) |
|---|---|---|---|---|
| Yaris | GLI MT 1.3 | 4,479,000 | 4,649,000 | 170,000 |
| Yaris | ATIV MT 1.3 | 4,730,000 | 4,829,000 | 99,000 |
| Yaris | GLI CVT 1.3 | 4,760,000 | 4,809,000 | 49,000 |
| Yaris | ATIV CVT 1.3 | 5,604,000 | 5,719,000 | 115,000 |
| Corolla | Altis 1.6 X CVT-i | 6,559,000 | 6,699,000 | 140,000 |
| Corolla | Altis X CVT-i 1.8 | 6,889,000 | 7,029,000 | 140,000 |
| Corolla | Grande X CVT-i 1.8 | 7,509,000 | 7,669,000 | 160,000 |
| Hilux | Revo GR-S | 15,359,000 | 15,889,000 | 530,000 |
| Fortuner | Sigma 4 | 17,579,000 | 18,169,000 | 590,000 |
| Fortuner | GR-S | 19,899,000 | 20,469,000 | 570,000 |
This chart highlights how the impact of the price hike varies. Entry-level cars like the Toyota Yaris have seen more modest increases, while premium models like the Fortuner and Hilux have become significantly more expensive, placing them even further out of reach for many middle-class buyers.
Reaction from Car Buyers
The response from the public has been swift and largely negative. Social media platforms, auto forums, and dealership lobbies have been filled with expressions of frustration from potential buyers. Many were saving for months or years to afford a Toyota vehicle and now find themselves needing to revise their budgets or postpone their purchases.
An Islamabad-based car enthusiast commented, “We understand the need for cleaner vehicles, but where are the affordable EVs? Right now, we’re being punished for not having the option to switch.”
Another buyer in Lahore added, “Even second-hand vehicles are now becoming overpriced. The entire market is out of control.”
Other Automakers Follow Suit
Toyota is not the only car manufacturer to raise its prices. Other automakers, including Honda Atlas, Pak Suzuki Motors, and Master Changan Motors, have already implemented similar price increases in response to the NEV Levy. This collective industry move signals a broader impact of the new taxation policy on the auto sector.
A senior representative from the Pakistan Automotive Manufacturers Association (PAMA) told media outlets, “If the government wants to promote EVs, they must also invest in infrastructure, offer subsidies, and make hybrid and electric models available and affordable.”
How the NEV Levy Works
The National Environmental Vehicle Levy is applied to vehicles that rely exclusively on fossil fuels. It does not apply to:
-
Fully electric vehicles (EVs)
-
Hybrid vehicles
-
Export-only vehicles
This means manufacturers that produce or import hybrid and electric cars can still market them at competitive rates. However, such vehicles are still limited in Pakistan, both in availability and affordability.
In contrast, the ICE vehicles, which dominate over 90% of the Pakistani market, are now burdened with this additional cost.
Impact on Pakistan’s Auto Industry
Pakistan’s auto industry has already been struggling with issues such as:
-
Import restrictions
-
Fluctuating currency exchange rates
-
High inflation
-
Low consumer confidence
-
High financing rates
This new tax could further weaken the sector by reducing sales volumes, especially for entry- and mid-level cars.
Auto sector analysts warn that if the Pakistani rupee depreciates further, the prices could go even higher. Also, if additional levies or duties are added in the next few months, the overall affordability crisis for car buyers will worsen.
Will Consumers Shift to Green Cars?
While the new levy aims to push people towards electric and hybrid cars, the lack of EV charging infrastructure, high initial costs, and limited vehicle options remain major barriers in Pakistan.
As of mid-2025:
-
EV charging stations are mainly limited to major cities like Karachi, Lahore, and Islamabad.
-
Locally assembled hybrids are few, and imported hybrids are subject to high duties unless exemptions apply.
-
The cost of batteries and repairs for EVs is also a concern for many.
Unless the government takes strong parallel steps—like providing EV incentives, expanding charging infrastructure, and reducing duties on hybrid and electric cars—it is unlikely that this policy alone will result in a significant shift toward cleaner vehicles.
Toyota’s Position and Strategy
Despite the criticism, Toyota Indus Motor Company has reaffirmed its commitment to adapting to the evolving automotive landscape. The company is already investing in local hybrid production and has hinted at launching more fuel-efficient models in the coming years.
In a recent press release, a Toyota spokesperson said, “We support the government’s vision for a cleaner environment. However, a balance must be maintained so the average consumer is not priced out of mobility.”
______________________________________________________________________
Here Are the Passport Fee Details in Pakistan by Category
Read This Article
Conclusion: What Lies Ahead for Car Buyers?
For now, owning a petrol or diesel-powered Toyota in Pakistan has undoubtedly become more expensive. Whether this move leads to a greener Pakistan or simply makes car ownership harder for the average family remains to be seen.
What’s clear is that the auto industry is entering a transitional phase. While the new NEV Levy may have long-term environmental benefits, its short-term economic impact—especially on middle-class families—is causing discomfort.
Buyers are advised to:
-
Plan purchases well in advance
-
Consult dealers about any upcoming price changes
-
Explore alternative options like used vehicles or smaller engine variants
-
Stay updated on government policies regarding EVs and hybrids
Until electric and hybrid vehicles become truly affordable, many Pakistanis will have no choice but to pay more or wait longer to own their dream car.
Stay tuned for more updates on the auto industry, car price changes, and NEV policy developments.
Share this article:
Facebook | Twitter | WhatsApp | Pinteres
Toyota Car Prices Surge in Pakistan After NEV Levy: Full Breakdown and What Buyers Should Know
By Sumeet Hameed | July 12, 2025
Car buyers in Pakistan are now facing a steep hike in prices if they wish to purchase a brand-new Toyota. From July 1, 2025, the Indus Motor Company (IMC), the local assembler and distributor of Toyota vehicles in Pakistan, has officially raised the prices of its entire lineup of cars and SUVs. This move follows the introduction of the NEV Levy—a new tax included in the Federal Budget for the fiscal year 2025–26, aimed at encouraging the adoption of eco-friendly vehicles.
While this policy has been presented as an environmental initiative, it has directly impacted the affordability of traditional petrol and diesel vehicles. As expected, Toyota has responded swiftly by adjusting its prices upward, joining other automakers like Honda, Suzuki, and Changan, which have also revised their price lists.
Let’s dive into what this new price hike means for car buyers in Pakistan, explore the reasons behind the increase, and review the updated prices of some of Toyota’s most popular models.
Why Have Toyota Prices Increased in Pakistan?
The core reason behind this sudden price revision is the government’s decision to impose a new National Environmental Vehicle (NEV) Levy. This levy is a form of taxation targeted at internal combustion engine (ICE) vehicles—specifically those running on petrol or diesel. According to officials, the main aim of this policy is to reduce carbon emissions and push consumers toward greener alternatives like hybrid and electric vehicles (EVs).
Although the intention may be progressive, the immediate effect is financial pain for the average Pakistani who relies on conventional fuel vehicles due to the limited availability and higher costs of EVs and hybrids in the local market.
Who Will Be Affected by the Price Increase?
The new prices are applicable to all bookings made on or after July 1, 2025. Customers who had already booked their vehicles and paid the full amount before June 30 are exempted from the increase. However, if a buyer made a booking but failed to clear the complete payment before the cut-off date, they will have to bear the updated cost.
Toyota has also clarified that the ex-factory price—the official price of the vehicle leaving the factory—does not include additional charges such as freight, insurance, registration, and withholding tax. These extra costs will be added on top of the revised prices, further increasing the total outlay for customers.
How Much Have Toyota Prices Increased?
Depending on the model, Toyota’s prices have gone up by anywhere between Rs. 49,000 to Rs. 600,000. Here’s a closer look at the updated prices of some of the most popular Toyota cars in Pakistan:
| Model | Variant | Old Price (PKR) | New Price (PKR) | Increase (PKR) |
|---|---|---|---|---|
| Yaris | GLI MT 1.3 | 4,479,000 | 4,649,000 | 170,000 |
| Yaris | ATIV MT 1.3 | 4,730,000 | 4,829,000 | 99,000 |
| Yaris | GLI CVT 1.3 | 4,760,000 | 4,809,000 | 49,000 |
| Yaris | ATIV CVT 1.3 | 5,604,000 | 5,719,000 | 115,000 |
| Corolla | Altis 1.6 X CVT-i | 6,559,000 | 6,699,000 | 140,000 |
| Corolla | Altis X CVT-i 1.8 | 6,889,000 | 7,029,000 | 140,000 |
| Corolla | Grande X CVT-i 1.8 | 7,509,000 | 7,669,000 | 160,000 |
| Hilux | Revo GR-S | 15,359,000 | 15,889,000 | 530,000 |
| Fortuner | Sigma 4 | 17,579,000 | 18,169,000 | 590,000 |
| Fortuner | GR-S | 19,899,000 | 20,469,000 | 570,000 |
This chart highlights how the impact of the price hike varies. Entry-level cars like the Toyota Yaris have seen more modest increases, while premium models like the Fortuner and Hilux have become significantly more expensive, placing them even further out of reach for many middle-class buyers.
Reaction from Car Buyers
The response from the public has been swift and largely negative. Social media platforms, auto forums, and dealership lobbies have been filled with expressions of frustration from potential buyers. Many were saving for months or years to afford a Toyota vehicle and now find themselves needing to revise their budgets or postpone their purchases.
An Islamabad-based car enthusiast commented, “We understand the need for cleaner vehicles, but where are the affordable EVs? Right now, we’re being punished for not having the option to switch.”
Another buyer in Lahore added, “Even second-hand vehicles are now becoming overpriced. The entire market is out of control.”
Other Automakers Follow Suit
Toyota is not the only car manufacturer to raise its prices. Other automakers, including Honda Atlas, Pak Suzuki Motors, and Master Changan Motors, have already implemented similar price increases in response to the NEV Levy. This collective industry move signals a broader impact of the new taxation policy on the auto sector.
A senior representative from the Pakistan Automotive Manufacturers Association (PAMA) told media outlets, “If the government wants to promote EVs, they must also invest in infrastructure, offer subsidies, and make hybrid and electric models available and affordable.”
How the NEV Levy Works
The National Environmental Vehicle Levy is applied to vehicles that rely exclusively on fossil fuels. It does not apply to:
-
Fully electric vehicles (EVs)
-
Hybrid vehicles
-
Export-only vehicles
This means manufacturers that produce or import hybrid and electric cars can still market them at competitive rates. However, such vehicles are still limited in Pakistan, both in availability and affordability.
In contrast, the ICE vehicles, which dominate over 90% of the Pakistani market, are now burdened with this additional cost.
Impact on Pakistan’s Auto Industry
Pakistan’s auto industry has already been struggling with issues such as:
-
Import restrictions
-
Fluctuating currency exchange rates
-
High inflation
-
Low consumer confidence
-
High financing rates
This new tax could further weaken the sector by reducing sales volumes, especially for entry- and mid-level cars.
Auto sector analysts warn that if the Pakistani rupee depreciates further, the prices could go even higher. Also, if additional levies or duties are added in the next few months, the overall affordability crisis for car buyers will worsen.
Will Consumers Shift to Green Cars?
While the new levy aims to push people towards electric and hybrid cars, the lack of EV charging infrastructure, high initial costs, and limited vehicle options remain major barriers in Pakistan.
As of mid-2025:
-
EV charging stations are mainly limited to major cities like Karachi, Lahore, and Islamabad.
-
Locally assembled hybrids are few, and imported hybrids are subject to high duties unless exemptions apply.
-
The cost of batteries and repairs for EVs is also a concern for many.
Unless the government takes strong parallel steps—like providing EV incentives, expanding charging infrastructure, and reducing duties on hybrid and electric cars—it is unlikely that this policy alone will result in a significant shift toward cleaner vehicles.
Toyota’s Position and Strategy
Despite the criticism, Toyota Indus Motor Company has reaffirmed its commitment to adapting to the evolving automotive landscape. The company is already investing in local hybrid production and has hinted at launching more fuel-efficient models in the coming years.
In a recent press release, a Toyota spokesperson said, “We support the government’s vision for a cleaner environment. However, a balance must be maintained so the average consumer is not priced out of mobility.”
Conclusion: What Lies Ahead for Car Buyers?
For now, owning a petrol or diesel-powered Toyota in Pakistan has undoubtedly become more expensive. Whether this move leads to a greener Pakistan or simply makes car ownership harder for the average family remains to be seen.
What’s clear is that the auto industry is entering a transitional phase. While the new NEV Levy may have long-term environmental benefits, its short-term economic impact—especially on middle-class families—is causing discomfort.
Buyers are advised to:
-
Plan purchases well in advance
-
Consult dealers about any upcoming price changes
-
Explore alternative options like used vehicles or smaller engine variants
-
Stay updated on government policies regarding EVs and hybrids
Until electric and hybrid vehicles become truly affordable, many Pakistanis will have no choice but to pay more or wait longer to own their dream car.
