Toyota Yaris Could Get Rs. 700,000 Cheaper Under Pakistan’s New Auto Policy
The Toyota Yaris could become more affordable in Pakistan if the government implements proposed changes under its Automotive and Auto Parts Policy 2026–31. Estimates reported in connection with the draft policy suggest that the 1.5-litre Yaris, currently priced at around Rs. 6 million for the relevant variant, could cost approximately Rs. 5.3 million in the policy’s first year.
That would represent a potential reduction of Rs. 700,000. However, the figure is an estimate based on proposed tax and tariff changes, not an official price announcement from Toyota Pakistan.
Prime Minister Shehbaz Sharif has approved the policy draft, which is expected to proceed through further government review and approval stages before the proposed changes become effective.
How Much Could the Toyota Yaris Price Fall?
According to estimates reported by The Express Tribune and cited by other news outlets, the 1,496cc Toyota Yaris could see its estimated price fall from Rs. 6 million to Rs. 5.3 million.
| Price detail | Estimated amount |
|---|---|
| Current reference price | Rs. 6,000,000 |
| Potential price under the proposal | Rs. 5,300,000 |
| Estimated saving | Rs. 700,000 |
| Approximate reduction | 11.7% |
These figures should be treated as projections rather than guaranteed savings. The final price will depend on the policy’s approved provisions, how they are implemented and Toyota’s own pricing decisions.
The estimate also relates to a 1.5-litre Yaris and should not automatically be applied to every 1.3-litre or 1.5-litre variant.
What Is Pakistan’s Automotive Policy 2026–31?
The proposed Automotive and Auto Parts Policy 2026–31 is intended to reshape Pakistan’s automotive sector over five years. Its stated objectives include improving competitiveness, encouraging exports, increasing local production and promoting the adoption of electric vehicles.
The draft proposes a gradual reduction in customs duties for conventional internal-combustion-engine vehicles and SUVs, with customs duty potentially reaching 15% by 2030–31 without additional or regulatory duties.
The policy also proposes separate sales tax treatment for different new-energy vehicle categories:
| Vehicle category | Proposed sales tax |
|---|---|
| Battery electric vehicles (BEVs) | 1% |
| Plug-in hybrid electric vehicles (PHEVs) | 9% |
| Range-extended electric vehicles (REEVs) | 6% |
These are proposed rates and remain subject to the required approvals. Conventional petrol vehicles, including the Toyota Yaris, would not automatically qualify for the special electric-vehicle sales tax rates.
Why Could the Yaris Become Cheaper?
The projected reduction is linked to proposed changes in automotive tariffs and taxes. Lower customs duties on imported vehicle components and changes to the overall tax structure could reduce some costs for manufacturers and assemblers.
However, the relationship between lower duties and showroom prices is not always one-to-one. The final impact depends on which components are imported, the applicable tax treatment, manufacturing costs, exchange rates and how much of any cost reduction is passed on to buyers.
The draft policy also proposes an Automotive Development Levy on internal-combustion-engine vehicles above 1,000cc to help fund incentives intended to increase automotive exports. The interaction of this levy with other proposed changes will also matter when calculating the final price of individual vehicles.
Will All Toyota Yaris Variants Become Cheaper?
Not necessarily by the same amount. The Yaris range includes 1.3-litre and 1.5-litre variants with different equipment levels and prices.
A tax estimate for a 1,496cc model does not establish the revised price of every variant. Each version may have a different cost structure, and the final outcome will depend on the approved policy and Toyota’s response.
Buyers should therefore avoid assuming that every Yaris will receive a flat Rs. 700,000 discount.
Has Toyota Pakistan Confirmed the Price Reduction?
No official Toyota price announcement confirming a reduction to Rs. 5.3 million has been identified in the reporting about the draft policy.
The proposal still needs to pass through the required approval and implementation process. Until the government formally notifies the applicable changes and Toyota publishes a revised price list, the projected reduction remains unconfirmed.
Anyone planning to buy a Yaris should check the latest official price list and obtain a written quotation from an authorised dealership rather than making a purchase decision based on an estimated future price.
What Could the Policy Mean for Car Buyers?
If implemented as proposed, the policy could change the prices of several vehicle categories, not just the Yaris. Lower tariffs may increase competition and affect the cost of imported vehicles and components over time.
At the same time, the policy includes measures intended to finance export incentives and encourage manufacturers to meet export and localisation targets. Those measures could influence the costs faced by buyers of conventional petrol vehicles.
The eventual effect will depend on the final rules, the pace of implementation and how manufacturers respond. A lower duty rate does not guarantee an equivalent reduction in the retail price.
The Bottom Line
Pakistan’s proposed Auto Policy 2026–31 could make the 1.5-litre Toyota Yaris cheaper, with one estimate pointing to a reduction of Rs. 700,000, from Rs. 6 million to Rs. 5.3 million.
For now, that figure is a projection, not a confirmed price cut. Buyers should wait for formal policy implementation and an updated Toyota price list before expecting to purchase the car at the estimated lower price.
Editorial note: Verify the latest policy approval status and Toyota’s official variant-wise prices before publication. The projected Rs. 700,000 saving should be attributed to reported estimates and not presented as a confirmed manufacturer announcement.