ISLAMABAD – Toyota Corolla Cross HEV becomes Rs. 13Lac more expensive and the hike pushes the top-spec model beyond Rs1 crore mark after withdrawal of tax concessions for hybrid vehicles in the Federal Budget FY2026–27.
New Toyota Corolla Cross Prices
| Variants | Old Price | New Price | Increase |
| Corolla Cross HEV | Rs. 8,535,000 | Rs. 9,849,000 | Rs. 1,314,000 |
| Corolla Cross HEV X | Rs. 8,935,000 | Rs. 10,299,000 | Rs. 1,364,000 |
With latest revision, top-spec Corolla Cross HEV X now carries a price tag of Rs. 10.299 million, pushing the premium hybrid crossover beyond the psychologically significant Rs. 1 crore mark.
The dramatic jump in prices is linked to the government’s decision to withdraw the concessional General Sales Tax (GST) previously available on locally assembled hybrid electric vehicles.
The reduced sales tax incentive for hybrid vehicles ended on June 30, 2026, and locally assembled Hybrid Electric Vehicles (HEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) are now subject to the standard 25% General Sales Tax (GST) instead of the lower rates they previously enjoyed.
Earlier, hybrids up to 1,800cc were taxed at 8.5%, while those above 1,800cc attracted 12.75% GST. With the concession gone, the higher tax is expected to increase vehicle prices significantly if manufacturers pass the additional cost on to buyers.
Popular hybrid models from brands such as Toyota, Honda, Hyundai, Kia, Haval, MG, Jaecoo, and GWM could become Rs1 million to over Rs2.5 million more expensive, depending on the model.
Expected Rates
The policy change has also created uncertainty for automakers, with some manufacturers reportedly delaying invoices while waiting for official clarification. The industry is now looking to the upcoming Automotive Industry Development and Export Policy (AIDEP) 2026–31 to see whether new incentives for hybrid vehicles will be introduced.
If no relief is provided, experts believe the higher upfront cost could reduce demand for hybrid cars, prompting some buyers to postpone purchases, opt for conventional petrol vehicles, or turn to the used-car market instead.
Toyota, Honda, other Hybrid Car Prices to Jump by up to Rs25Lac after GST Shock
