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Pakistani car prices are dropping, but why?

In a surprising twist, major car companies in Pakistan, such as Toyota, Honda, Kia, and Suzuki, are fiercely lowering car prices for many of their popular car models. This sudden change is in response to recent rule changes and intense competition in the market.

Regulatory Changes Spark Price War

Kia reduced the price of the KIA Stonic by a huge 24%, or about 1.5 million rupees less. Suzuki also lowered the cost of its Swift GLX CVT by 13%. Toyota and Honda made more minor cuts, around 3%, on their Yaris 1.3 CVT and Honda City CVT models.

Alignment in Post-Reduction Car Prices

Interestingly, even though the price cuts were different, all four cars now cost between Rs4.69 million and Rs4.77 million. This was done to stay under the Rs4 million price limit set in March 2024.

Regulatory Landscape Shifts

This price battle started when the rules changed in March 2023. The tax increased for cars with big engines (over 1400cc) and SUVs. Toyota, Honda, and Suzuki didn’t feel this change, but Kia’s Stonic did because it’s grouped with SUVs.

But in March 2024, the rules changed again. They limited how much tax (GST) can be added to 25% of the price before tax, which was set at Rs4 million. This made things fair for everyone. Toyota and Honda then slightly lowered their top model prices to follow the new rules. Kia also greatly lowered the cost of its Stonic to fit this limit. Suzuki did the same by cutting the price of its Swift top model.

Future Outlook

Now, people wonder if Toyota and Honda will make their Yaris and City models even cheaper to compete with the lower-priced Stonic and Swift. We’ll have to wait and see how things unfold in the market.

Unprecedented Competition Benefits Consumers

As car prices drop, people in Pakistan will get better deals. This is making car companies compete more for customers. Lower prices will likely increase buyers and help the car market grow.

Challenges and Opportunities

Even though cheaper prices are reasonable for buyers, car companies might need help to make as much money because they’re making less profit on each car. They must find a way to keep prices low but make enough money to stay in business. This is important for them to do well in the changing car market.


The car price battle in Pakistan shows how companies react to new rules and competition. People can get cheaper cars and more options, which is good. However, car companies need to be smart about setting prices to ensure they can keep going strong in the future.


Mufaqar is a seasoned developer, blogger, and the founder of Carbuzz. With expertise in technology, he shares valuable insights and resources through his renowned blog. Committed to excellence, Mufaqar empowers readers with the latest industry knowledge and guidance to excel in their automobile technoloyg.

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