KARACHI: Hybrid vehicles are becoming popular in Pakistan, imports data shows, mainly because of their perceived fuel-efficiency.

Used Honda Vezel 1,500cc, Insight 1,333cc, Fit 1,333cc, and Toyota’s Aqua 1,500cc are also now seen on roads after Toyota Prius.

Honda Vezel costs Rs3.5 million, followed by Insight Rs1.6m and Fit Rs1.5m. Toyota Prius 1,800cc and Aqua are available at Rs2.5m and Rs1.6m, respectively.

“The local manufacturers should seriously consider introducing high-tech vehicles as there is a great demand for saving fuel cost and driving the latest variants,” Shabbir Allibhai, an authorised dealer of Honda Atlas Cars, told Dawn. He hinted at Honda’s plans to manufacture the Honda Vezel in Pakistan.

According to figures of Pakistan Bureau of Statistics (PBS), overall imports of cars (more than 90pc of which were used) swelled by 26pc in July-March 2014-15 to $185m from $146.6m a year ago.

Sources said car importers benefited from the concessionary duties as more than 10,000 used hybrid vehicles (up to three years old) have been imported since July 2013, out of which around 8,000 were under category of 1,300cc to 1,500cc while the rest were luxury brands of above 1,800cc category. In the last two months, more than 300 used hybrid cars have been imported.

Around one and a half years ago, the Indus Motor Company (IMC) introduced brand new imported Toyota Prius (Rs4.5m) and Honda Atlas Cars unveiled imported CRZ Hybrid (Rs3.5m) with warranty and parts availability. But they faced lacklustre response from car lovers, probably due to very high prices.

Both the companies imported around 60-70 vehicles. The government levies were 37.5pc and 17pc GST in the retail prices. In the meantime, used Prius started gaining ground in the market with its attractive price.

A market observer said that the influx of used hybrid cars in the domestic market is hurting interest of companies formally importing these vehicles under warranty. “It is astonishing that on the one hand the government wants to promote investments and manufacturing, but on the other, it encourages trading at the cost of industry,” he said.

The Pakistan Automotive Manufacturers Association (PAMA) has urged the government to amend the SRO-499(I)/2013 so that officially imported new hybrid electric vehicles (HEVs) become more affordable for the consumer.

The car companies want relief in sales tax at both import and supply stages as it encourages them to introduce locally manufactured hybrid vehicles in Pakistan.

Under the above-mentioned SRO, hybrid vehicles are allowed to be imported at a concessionary rate of duties and taxes only as completely built-up units (CBU). The present concessionary rates in this regard are 50pc for up to 1,800cc and 25pc for 1,801 to 2,500cc.

“The existing concession to CBUs should also be extended to the imports of auto parts and CKD kits, enabling local production of similar hybrid vehicles. The SRO provides relief from customs duty, sales tax and income tax only on the import of HEVs,” they say.

However, local sale of these vehicles by a registered person is subject to sales tax at normal rate of 17pc.

Published in Dawn, April 25th, 2015

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