Hybrid vehicles, including HEVs and PHEVs, have sales tax uncertainty after the expiry of their reduced sales tax concession on June 30, 2026.
Under the previous concession, locally assembled hybrid vehicles, including HEVs and PHEVs, were subject to reduced sales tax rates of 8.5% or 12.75% for engines of 1800cc or above.
However, that concession has now expired.
What Happens After the Concession Ends?
Under the current law, if a tax concession expires and no extension or policy is issued, vehicles revert to the normal sales tax regime.
For combustion engine-based vehicles, the regular sales tax is 25% if the vehicle is valued above Rs 40 lakh or has an engine capacity of 1400cc or more.
As the concession expired on June 30th, 2026, hybrids now fall under the regular sales tax regime, which is 25% until the government announces an extension or a new auto policy.
Previous Hybrid GST vs Current GST
Below is the table for easy understanding:
| Vehicle Category | Previous GST | Current GST |
| Hybrid vehicles up to 1800cc | 8.5% | 25% |
| Hybrid vehicles 1800cc and above | 12.75% | 25% |
Hybrid Invoices Reportedly Paused
PakWheels has also got to know that that several manufacturers are currently not issuing invoices due to a lack of clarity over the applicable sales tax rate.
Companies are waiting for the new auto policy, which will have a confirmed sales tax rate for hybrid vehicles.
Expected Increase in HEVs with 25% GST
If manufacturers invoice their HEVs with 25% GST, there will be a price hike.
If fully passed on, there could be a hike of up to Rs 25 lakh on HEV cars:
| Model | Current Ex-factory Price | New Ex Factory Price | Increase |
| Haval H6 HEV | 11,523,015 | 13,275,000 | 1,751,985 |
| Haval Jolion | 9,116,216 | 10,503,000 | 1,386,784 |
| Toyota Corolla Cross 1.8 HEV | 8,535,000 | 9,833,000 | 1,298,000 |
| Toyota Corolla Cross 1.8 HEV X | 8,935,000 | 10,294,000 | 1,359,000 |
| Honda HR-V e: HEV | 8,999,000 | 10,368,000 | 1,369,000 |
| Jaecoo J5 Comfort | 6,699,000 | 7,718,000 | 1,019,000 |
| Jaecoo J5 Premium | 7,699,000 | 8,870,000 | 1,171,000 |
| MG HS Hybrid+ | 9,499,000 | 10,944,000 | 1,445,000 |
| GWM Tank 500 HEV | 20,500,000 | 22,727,000 | 2,227,000 |
| Hyundai Elantra Hybrid | 9,895,000 | 11,400,000 | 1,505,000 |
| Hyundai Tucson Hybrid Smart | 11,220,000 | 12,926,000 | 1,706,000 |
| Hyundai Tucson Hybrid Signature | 12,240,000 | 14,101,000 | 1,861,000 |
| Hyundai Palisade Smart | 20,999,000 | 23,280,000 | 2,281,000 |
| Hyundai Palisade Comfort | 22,999,000 | 25,498,000 | 2,499,000 |
| Hyundai Santa Fe Smart | 12,450,000 | 14,343,000 | 1,893,000 |
| Hyundai Santa Fe Signature | 13,895,000 | 16,008,000 | 2,113,000 |
| Kia Sportage L HEV | 11,299,000 | 13,017,000 | 1,718,000 |
| Kia Sorento 1.6T HEV FWD | 15,299,000 | 17,626,000 | 2,327,000 |
| Kia Sorento 1.6T HEV AWD | 16,699,000 | 19,238,000 | 2,539,000 |
Expected Increase in PHEVs with 25% GST
Similar to HEVs, PHEVs will also see a price hike if manufacturers invoice their PHEV models with 25% GST.
If fully passed on, there could be a hike of up to Rs 25 lakh on PHEV cars:
| Model | Current Ex-factory Price | New Ex Factory Price | Increase |
| Jetour T2 | 12,795,000 | 14,741,000 | 1,946,000 |
| Haval H6 PHEV | 12,895,000 | 14,856,000 | 1,961,000 |
| MG HS Super Hybrid | 10,199,000 | 11,750,000 | 1,551,000 |
| Jaecoo J7 | 10,499,000 | 12,096,000 | 1,597,000 |
| Chery Tiggo 7 PHEV | 9,499,000 | 10,944,000 | 1,445,000 |
| Chery Tiggo 8 PHEV | 11,299,000 | 13,017,000 | 1,718,000 |
| Chery Tiggo 9 PHEV | 13,694,000 | 15,776,000 | 2,082,000 |
| GWM Tank 500 PHEV | 22,500,000 | 24,945,000 | 2,445,000 |
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