Latest news with #HybridElectricVehicles
Business Recorder
13-06-2025
- Automotive
- Business Recorder
Budget 2025-26: Pakistan's auto industry seeks clarifications about EVs, hybrid cars
KARACHI: The automotive industry is seeking urgent clarification on recent measures proposed in the federal budget 2025-26 that could significantly impact the electric and hybrid vehicle markets, as conflicting tax rates threaten billions of dollars investments. Speaking to a group of journalists, Syed Asif Ahmed, General Manager of MG Motors Pakistan, highlighted a critical tax disparity that has persisted for years. Hybrid Electric Vehicles (HEVs) currently enjoy a preferential 8.5% GST rate, whereas Fully Electric Vehicles (EVs) face an 18% GST burden. 'This anomaly has existed for many years, giving an unfair advantage to HEVs over EVs,' Ahmed said. He pointed out reports circulating on social media, suggesting the government may increase GST on HEVs from 8.5% to 18%. Budget 2025-26: auto sector faces mixed fortunes amid tariff reforms, carbon tax Ahmed lamented that if the GST were increased to 18%, it could imperil huge investments poured into hybrid vehicle technology, contradicting commitments made under the Automotive Industry Development and Export Policy (AIDEP) 2021-26, which promised no tariff changes until June 2026. 'The Finance Bill remains silent on this critical subject,' Ahmed said, adding that what is needed is for EV GST to be reduced to 8.5% to match the HEV rate, rather than raising taxes on hybrid vehicles. The MG Motors executive also raised concerns about potential abuse of import regulations, claiming that used car importers are exploiting gift, baggage, and transfer of residence schemes for commercial trading purposes, circumventing normal import procedures. He said if commercial importers were allowed to import five-year-old used cars with reduced regulatory duties, it would create more challenges for the local auto assemblers. Copyright Business Recorder, 2025
Business Recorder
13-06-2025
- Automotive
- Business Recorder
Budget 2025-26: Auto industry seeks clarifications about EVs, hybrid cars
KARACHI: The automotive industry is seeking urgent clarification on recent measures proposed in the federal budget 2025-26 that could significantly impact the electric and hybrid vehicle markets, as conflicting tax rates threaten billions of dollars investments. Speaking to a group of journalists, Syed Asif Ahmed, General Manager of MG Motors Pakistan, highlighted a critical tax disparity that has persisted for years. Hybrid Electric Vehicles (HEVs) currently enjoy a preferential 8.5% GST rate, whereas Fully Electric Vehicles (EVs) face an 18% GST burden. 'This anomaly has existed for many years, giving an unfair advantage to HEVs over EVs,' Ahmed said. He pointed out reports circulating on social media, suggesting the government may increase GST on HEVs from 8.5% to 18%. Budget 2025-26: auto sector faces mixed fortunes amid tariff reforms, carbon tax Ahmed lamented that if the GST were increased to 18%, it could imperil huge investments poured into hybrid vehicle technology, contradicting commitments made under the Automotive Industry Development and Export Policy (AIDEP) 2021-26, which promised no tariff changes until June 2026. 'The Finance Bill remains silent on this critical subject,' Ahmed said, adding that what is needed is for EV GST to be reduced to 8.5% to match the HEV rate, rather than raising taxes on hybrid vehicles. The MG Motors executive also raised concerns about potential abuse of import regulations, claiming that used car importers are exploiting gift, baggage, and transfer of residence schemes for commercial trading purposes, circumventing normal import procedures. He said if commercial importers were allowed to import five-year-old used cars with reduced regulatory duties, it would create more challenges for the local auto assemblers. Copyright Business Recorder, 2025
Express Tribune
12-06-2025
- Automotive
- Express Tribune
Passenger car sales jump 32% in 11 months
Listen to article Passenger car sales increased by 32.1% to 94,388 units during the first 11 months of the current fiscal year compared to the same period in the previous year on account of a variety of reasons, including a dramatic fall in interest rates, back-to-back Eid festivities, anticipated price hikes ahead of the federal budget 2025-26, and others. According to data released by the Pakistan Automotive Manufacturers Association (PAMA), sales of all vehicles, including two-, three-, and four-wheelers, increased; however, sales of farm tractors declined. Sales of jeeps-cum-pickups rose by 66% to 31,706 units. Sales of trucks and buses increased by 95.7% to 3,776 units and by 73.3% to 719 units, respectively. Sales of motorcycles and rickshaws also surged by 30% to 1,378,131 units. However, sales of farm tractors fell by a dramatic 36.8% to 26,401 units. Automobile consultant and expert Shafiq Ahmed Shaikh said it augurs well that, excluding the tractor segment, other parts of the auto sector are gaining momentum as they are on an upward trend. This reflects that the auto industry is growing and regaining strength. "In my opinion, there are four main reasons. First, the reduction in interest rates — different banks and financial institutions are offering good and affordable instalment schemes. Secondly, owing to information and rumours ahead of the federal budget that vehicle prices will rise, sales have increased. Thirdly, during both Eidul Fitr and Eidul Azha, sales witnessed substantial rises as customers wanted vehicles during the Eid holidays to celebrate in a better way. Finally, credit for the significant rise in vehicle sales also goes to improved law and order, which has supported the industry, along with favourable government measures allowing the industry to flourish. In my opinion, the auto industry has the potential and capacity to grow. We foresee that the existing industry will face stronger competition from electric vehicles (EVs), as the future will mainly depend on EVs," he said. Auto sector analyst Mashood Khan said all segments of the automotive industry performed well except for the tractor segment. The motorcycle industry has continuously gained strong momentum throughout the year due to the middle class, which cannot afford expensive four-wheelers. When it comes to the auto industry overall, it has started regaining strength. Meanwhile, raising concerns about the recently announced federal budget 2025-26, MG Motors Pakistan General Manager (GM) Marketing Division Syed Asif Ahmed said the industry is seeking clarity on the budget. Hybrid Electric Vehicles (HEVs) enjoy 8.5% GST compared to 18% on EVs. This anomaly has existed for many years, giving HEVs an advantage over EVs. "Social media has reported an increase in the GST for HEVs from 8.5% to 18%. If true, this will jeopardise the huge investments made by almost all automakers in HEVs. The Finance Bill is silent on the subject, despite the Automotive Industry Development and Export Plan (AIDEP) 2021-26 commitment of no change in tariffs until June 2026. What is needed is for EV GST to be reduced to 8.5% to match HEVs," he said. He added that used car importers are abusing the gift, baggage, and transfer of residence schemes for commercial trading. Allowing commercial imports of five-year-old used cars with reduced Regulatory Duty (RD) will distort the playing field against local assemblers.
Mint
04-06-2025
- Automotive
- Mint
Hybrids vs EVs: New advisory for Delhi fleet operators adds fresh fuel to fire
New Delhi/Mumbai: A fresh advisory by New Delhi's air quality monitoring body has reignited the debate over whether hybrid vehicles can be included in the category of 'clean vehicles'. The Commission for Air Quality Management in the National Capital Region and Adjoining Areas (CAQM) in a 3 June advisory directed commercial fleet operators to not induct conventional petrol or diesel vehicles and prefer 'clean' automobiles instead, much to the chagrin of the electric vehicle lobby for not clearly defining clean vehicles. 'No conventional ICE (internal combustion engine) vehicles running purely on diesel or petrol shall be further inducted in the existing fleet of 4-Wheeler LCVs (light commercial vehicles), 4-Wheeler LGVs (light goods vehicles; N1 category up to 3 5 Ton) and 2-Wheelers with effect from 01.01.2026," CAQM said in its advisory to vehicle aggregators, delivery service providers, and e-commerce entities. While it did not define 'clean vehicles' this time, CAQM in a 2 May advisory defined these as battery electric vehicles, hybrid vehicles, and those running on compressed natural gas (CNG). The ambiguity in the latest advisory has left the door open for the promotion of hybrid vehicles in the national capital, which struggles with among the highest pollution levels in the country. EV makers led by domestic car companies have been lobbying to not give hybrid vehicles—which use both a combustion engine and an electric motor for propulsion—a policy status on par with battery electric vehicles (BEVs). Doing so could risk their investments in developing electric cars, they said. A rival lobby has been promoting the adoption of hybrid cars as these provide a more practical alternative to conventional combustion engine vehicles. The two lobby groups are now reading between the lines of policy documents. The purity debate Following CAQM's 2 May advisory, Tata Motors Ltd, Hyundai Motor India, and Mahindra and Mahindra Ltd rushed to the Ministry of Heavy Industries and Niti Aayog against the mention of hybrid vehicles as a clean technology along with EVs. The air quality monitoring body believes hybrid vehicles can help in urgently addressing the pollution crisis in Delhi. 'Strong Hybrid Electric Vehicles (SHEV) offer substantial improvements in fuel efficiency and emission reduction as compared to conventional diesel/petrol vehicles," CAQM said in its 2 May advisory urging state and central government departments in the Delhi-National Capital Region to procure only clean vehicles. The national capital region became a point of contention in the pure electric vehicle versus hybrid vehicle debate when the Delhi government on 22 April issued a draft policy proposing to grant hybrid cars the same benefits as fully electric cars. The Delhi Electric Vehicles Policy 2.0 proposed waiving road tax and registration fees on battery electric cars (BEVs), strong hybrid EVs (SHEVs), and plug-in hybrid EVs (PHEVs) priced up to ₹20 lakh ex-showroom. This would translate to savings of about ₹2 lakh on a car with an ex-factory price of ₹20 lakh. CAQM released its draft guidelines 10 days later. 'Inclusion of hybrid vehicles in incentives and putting it on the same pedestal as electric vehicles will discourage investments into EVs," an executive at one of the top domestic automakers said, declining to be identified. A move to hybrids Currently, only Maruti Suzuki India Ltd, the country's largest carmaker, has a portfolio comprising ICE, hybrid, and pure electric vehicles. Last month, Hyundai Motor India Ltd, the country's second-largest carmaker, said it planned to introduce hybrid electric vehicles in the country, without specifying a timeline. Honda Motor Co. Ltd said last month that it will focus on hybrid cars and slashed its EV target citing a slowdown in the adoption of electric cars. Analysts at HSBC Global Research, however, said hybrid vehicles and electric vehicles complement each other, and would ultimately help in the growth of the EV sector. 'The perception that promoting SHEVs will hinder EV adoption is misplaced, in our view. This is not a zero-sum game, but rather an incremental opportunity where incentivizing SHEVs contributes to the broader development of the clean mobility ecosystem, benefiting BEVs and advancing overall market growth," HSBC Global Research analysts Yogesh Aggarwal,Vipul Agrawal, and Vishal Goel wrote in a note dated 20 May. But other experts argue that only pure electric vehicles should be incentivized if the government wants to promote zero-emission vehicles. 'The objective of the EV policy is to cut down emissions of vehicles and also contribute to improving the air quality," said Sharif Qamar, associate director of transport and urban governance at The Energy and Resources Institute (Teri), a non-profit think tank. 'When it comes to the emission reduction objective, currently, only zero-tailpipe emission vehicles need to be prioritised. Incentives should be crafted to encourage players to move towards zero emission vehicles."
Daily Tribune
08-04-2025
- Automotive
- Daily Tribune
Toyota names four winners of Ramadan raffle draw
Ebrahim K. Kanoo, the exclusive distributor of Toyota in Bahrain, has successfully concluded its highly anticipated Ramadan campaign with a raffle draw held at the Toyota Showroom in Sitra, announcing four winners who each will drive away with a brand-new Toyota Raize. The raffle draw was held in the presence of EKK Management & a representative from the Ministry of Industry, Commerce and Tourism. The lucky winners of the brand-new Toyota Raize vehicles were: Yaser Abdulrazzaq Ahmed Alhamdan, Fatema Abdulrahim Taleb Mohamed, Zainab Abdulla Mohamed Ali Mohamed, and Gulf Equipment and Technology W.L.L. This year's Ramadan campaign featured an enticing raffle draw, where customers automatically entered the raffle draw with any Toyota purchase for a chance to win one of four Toyota Raize vehicles. This campaign initiative resulted in a significant increase in showroom walk-ins and heightened customer engagement. Adding to the excitement, the Ramadan campaign offered a complimentary 1-year/20,000 km service package on all Hybrid Electric Vehicles, in addition to attractive financing options, and up to 25% discounts on Ziebart and Llumar products. Mr. Ismail Akbar, Toyota & Lexus Sales Executive General Manger expressed his delight at the successful conclusion of the campaign, stating, 'We are happy to announce the four lucky winners of the Toyota Bahrain raffle draw, each receiving a brand-new Toyota Raize. This exciting event reflects our appreciation for our valued customers, and we look forward to continuing to bring joy and innovation to their driving experience.' Toyota Bahrain extends its congratulations to the four winners and expresses its gratitude to all customers who benefited from the Ramadan campaign. The company remains committed to providing exceptional vehicles and customer service, reinforcing its position as a leading automotive brand in Bahrain.
