As part of the recently unveiled Federal Budget 2025–26, the Government of Pakistan has announced significant tax adjustments, including an increase in the sales tax rate from 12.5% to 18% and the introduction of a New Enhanced Value (NEV) Levy on automobile sales. In response to these fiscal changes, Pak Suzuki Motor Company (PSMC) has revised the retail prices of its entire vehicle lineup, with the new prices effective from July 1, 2025.
The primary reason behind this price hike is the government’s new taxation policy aimed at boosting revenue collection amid a challenging economic climate. The higher sales tax and NEV Levy have directly increased the cost of vehicle production and distribution. As a result, Suzuki, like other automakers, has passed on these additional costs to customers, resulting in noticeable price jumps across its popular models.
Revised Suzuki Car Prices for 2025
Here’s a breakdown of the new Suzuki car prices and how much they have increased:
Impact on Consumers and the Market
This latest price adjustment will especially impact buyers in the entry-level and mid-level segments—many of whom are already struggling with inflation and stagnant incomes. Vehicles like the Alto, Every, and Ravi are popular among first-time car buyers, small business owners, and families looking for affordable and practical mobility solutions.
Industry experts warn that this increase could dampen car sales in the short term, as higher prices may push potential buyers to delay purchases or seek alternative, cheaper transportation. If demand falls significantly, it could also have a ripple effect on Pakistan’s auto sector, which has already faced challenges due to import restrictions, currency devaluation, and rising production costs.
What’s Next?
Stakeholders hope that the government may consider future policy relief or incentives—such as lower registration fees or special rebates for fuel-efficient and small vehicles—to cushion the impact of these tax hikes. Until then, buyers will need to adjust their budgets as owning a new car in Pakistan just got more expensive.
With Pak Suzuki revising prices across its entire lineup, prospective car buyers should be prepared for higher upfront costs. If you’re planning to buy a Suzuki vehicle in 2025, it’s advisable to stay updated on any further policy changes and look out for potential manufacturer discounts or dealer promotions that could help offset the new taxes.
Afsheen Gohar is a seasoned writer with a wealth of experience in crafting authentic and well-researched articles. Her dedication to delivering high-quality content is evident in her work, where she combines a passion for storytelling with a commitment to accuracy and depth. Afsheen’s writing reflects her ability to engage readers with compelling narratives while providing valuable insights on a diverse range of topics.
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