Master Changan Motor Limited has announced a significant Changan car price hike across its entire vehicle lineup, effective July 1, 2025. The increase ranges from PKR 45,000 to PKR 200,000, depending on the model—a move attributed to newly imposed government taxes and the introduction of a New Energy Vehicle (NEV) levy.
What’s Behind the Price Hike?
The price adjustment follows the announcement of Pakistan’s Federal Budget 2025–26, which includes a flat 18% sales tax on small cars and a tiered NEV levy of 1% to 3% on internal combustion engine (ICE) vehicles. The government introduced these measures to promote electric cars and increase tax revenue from fossil-fuel-based transportation.
In a statement, Master Changan cited both the NEV levy and rising input costs—including currency depreciation, global freight, and raw material rates—as major reasons behind the revision. The company emphasized that the decision was necessary to maintain operations in a challenging economic climate.
Model-Wise Price Revisions
Here’s a quick breakdown of the new prices:
- Oshan X7: The Comfort (7-seat) now costs PKR 8,474,000, up from PKR 8,299,000. The FS (5-seat and 7-seat) variants have been raised by PKR 200,000.
- Alsvin: The base MT Comfort variant has been raised to PKR 4,189,000. The top-end Lumiere and Lumiere Black Edition are now priced at PKR 4,899,000 and PKR 4,999,000, respectively.
- Karvaan Power Plus 1.2: Now priced at PKR 3,249,000 after a PKR 50,000 hike.
- Sherpa Power 1.2: Increased from PKR 2,304,000 to PKR 2,349,000.
Read Also: Pakistan Govt Slaps Tax on Every Bank Transaction
Industry-Wide Impact
Master Changan isn’t alone in this pricing trend. Other automakers like Pak Suzuki and Atlas Honda have also revised prices in response to the same levies. Pak Suzuki increased car prices by up to PKR 186,000, while Atlas Honda adjusted motorcycle prices across its lineup.
Final Thoughts
As automotive companies pass the impact of new fiscal measures onto consumers, car buyers in Pakistan are once again facing affordability challenges. With additional costs becoming the new norm, market dynamics may shift further toward hybrid and electric vehicles, which remain exempt from the new levies.
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