Car prices in Pakistan are set to fall under the new Auto Policy 2026-31, announced on 7 November 2026. Government estimates show cars up to 658cc (the Suzuki Alto class) getting about Rs 3,75,000 cheaper, 998cc cars (like the Cultus) about Rs 4,40,000 cheaper, and some SUVs up to Rs 10 lakh cheaper. If the full cut reaches the Alto VXR, its bank installment drops from about Rs 49,325 to Rs 43,149 a month (5 years, HBL 14.50%), and the 30% down payment falls by about Rs 1,12,500.
Important: Pak Suzuki and other carmakers have not yet announced new showroom prices. The figures below are government estimates; we will update this page when official price lists come out.
Last updated: 11 November 2026 by Ahmed Malik. Current prices from Pak Suzuki’s official list; bank rates as in our Alto installment comparison; 1-year KIBOR 12.92%.
What the Government Announced (Auto Policy 2026-31)
Information Minister Attaullah Tarar and PM’s Adviser Haroon Akhtar presented the Automotive Policy 2026-31 in Islamabad on 7 November 2026. The main points for car buyers:
- Lower duties: federal excise duty and customs duty cuts, reduced gradually every year for five years. Officials said all cars except luxury vehicles should get cheaper.
- No extra tax on cars under 1000cc, which protects small hatchbacks like the Alto.
- EV financing: the bank loan limit for electric and new energy vehicles goes from Rs 30 lakh to Rs 1 crore, and the tenure from 3 to 5 years. Banks can offer this only after the State Bank changes its rules.
- Exports and safety: a $6 billion auto export target over five years, plus new safety and quality standards for local cars.
Expected New Car Prices After the Price Cut
| Category (example car) | Old price | Expected new price | Cut |
|---|---|---|---|
| Up to 658cc (Suzuki Alto) | Rs 32.20 lakh | Rs 28.45 lakh | Rs 3,75,000 |
| Up to 998cc (Suzuki Cultus) | Rs 42.70 lakh | Rs 38.30 lakh | Rs 4,40,000 |
| SUV up to 1,496cc | Rs 60.60 lakh | Rs 53.20 lakh | Rs 7,40,000 |
| SUV at 1,498cc | Rs 94.40 lakh | Rs 91.60 lakh | Rs 2,80,000 |
| Jeep up to 1,598cc | Rs 1.21 crore | Rs 1.11 crore | Rs 10,00,000 |
Category estimates reported after the policy announcement (UrduPoint, Pakbiz, 9 to 10 November 2026). Not official company prices.
Suzuki Alto New Price: All Variants (Estimate)
The Alto’s current official prices have not changed since July 2025. If the full Rs 3,75,000 cut is passed on to each variant, prices would be:
| Variant | Current price | Expected price (if full cut) |
|---|---|---|
| Alto VXR | Rs 29,94,861 | Rs 26,19,861 |
| Alto VXR AGS | Rs 31,66,480 | Rs 27,91,480 |
| Alto VXL AGS | Rs 33,26,446 | Rs 29,51,446 |
Some reports put the Alto saving closer to Rs 3,55,000 and say the cut will come in stages. Treat these as the best-case numbers until Pak Suzuki publishes its new list.
Alto Installment After the Price Cut: How Much Less Per Month?
30% down payment, bank finances 70%. Conventional bank figures exclude insurance and tracker.
| Alto VXR | Now (Rs 29,94,861) | After cut (Rs 26,19,861) | You save |
|---|---|---|---|
| Down payment (30%) | Rs 8,98,458 | Rs 7,85,958 | Rs 1,12,500 |
| Amount financed | Rs 20,96,403 | Rs 18,33,903 | Rs 2,62,500 |
| HBL 14.50%, 5 years | Rs 49,325 | Rs 43,149 | Rs 6,176 / month |
| HBL 14.50%, 3 years | Rs 72,160 | Rs 63,125 | Rs 9,035 / month |
| MCB KIBOR + 4%, 5 years | Rs 52,011 | Rs 45,498 | Rs 6,513 / month |
| UBL KIBOR + 4.75%, 5 years | Rs 52,859 | Rs 46,240 | Rs 6,619 / month |
Over a 5-year HBL loan, the lower price also cuts total markup from about Rs 8.63 lakh to Rs 7.55 lakh, a saving of roughly Rs 1.08 lakh on top of the lower car price.
Alto AGS Variants After the Cut (5 years)
| Variant | Down payment after cut | HBL 14.50% | MCB KIBOR + 4% |
|---|---|---|---|
| Alto VXR AGS | Rs 8,37,444 | Rs 45,975 (now Rs 52,151) | Rs 48,479 (now Rs 54,991) |
| Alto VXL AGS | Rs 8,85,434 | Rs 48,610 (now Rs 54,786) | Rs 51,257 (now Rs 57,769) |
Cultus Installment After the Price Cut
For a 998cc car priced at Rs 42.70 lakh falling to Rs 38.30 lakh, the 30% down payment drops from Rs 12,81,000 to Rs 11,49,000. Cars above 1000cc are capped at 3 years, but the Cultus (998cc) qualifies for 5 years: about Rs 63,079 a month at HBL after the cut, down from Rs 70,326. See our Cultus installment plan on Meezan Bank for the Islamic option.
New Price and Installment for Each Car
- Suzuki Cultus new price and installment (about Rs 4.4 to 5 lakh cheaper)
- Toyota Yaris new price and installment (1.5 about Rs 7 lakh cheaper)
- Toyota Corolla new price and installment (selected variants Rs 6 to 8 lakh cheaper)
- Kia Sportage new price, promo and installment (about Rs 11 lakh cheaper)
- Honda City price and installment
- Suzuki Swift price and installment
- Haval H6 new price (PHEV about Rs 18 lakh cheaper)
- Honda HR-V new price (hybrid Rs 6 to 8 lakh cheaper)
- Honda Civic price and installment
- MG HS new price (PHEV about Rs 13 lakh cheaper)
- Haval Jolion new price (Rs 6 to 8 lakh cheaper)
- Wuling Bingo EV new price (about Rs 27 lakh)
- GAC Aion UT new price (about Rs 51 lakh)
- Baojun Yep Plus new price (about Rs 50 lakh)
- Jaecoo J7 PHEV new price (about Rs 80 lakh)
- Toyota RAV4 PHEV new price (about Rs 50 lakh cheaper)
- Toyota Fortuner: will it get cheaper?
Should You Book a Car Now or Wait?
- If you can wait: new prices usually apply only to cars invoiced after the company’s notification. Booking at today’s price could cost you up to Rs 3.75 lakh on an Alto.
- Ask about price protection: if you book now, ask the dealer in writing whether you get the lower price if it is announced before delivery.
- Watch interest rates too: the State Bank raised the policy rate to 12% on 27 October 2026. KIBOR-linked loans reset every year, so a cheaper car can still cost more monthly if rates rise. A fixed-rate plan like HBL’s locks your installment.
- Running costs are also down: petrol fell to Rs 338 a litre from 11 November 2026, and small cars up to 800cc are covered by the government’s targeted fuel subsidy scheme.
Bank Car Loan Rules Have Not Changed (Yet)
For petrol cars, SBP’s existing rules still apply: minimum 30% down payment, maximum Rs 30 lakh financing per person, up to 5 years for cars under 1000cc and 3 years above that. Proposals for 7-year loans and a lower down payment have been discussed but are not in force. Compare current rates in car loan interest rates in Pakistan and the full list of banks that give car loans.
Need help choosing a bank? The Invest Pakistan compares plans for your car and salary. Try your own deposit and tenure in our car loan calculator.
FAQs: Car Price Cut and Installments
Have car prices really been reduced in Pakistan?
The government approved the Auto Policy 2026-31 on 7 November 2026 with duty cuts meant to lower prices. Carmakers have not yet issued new price lists, so showroom prices have not changed yet.
What will be the new price of Suzuki Alto?
Estimates suggest about Rs 3.55 to 3.75 lakh less. If the full cut applies, the Alto VXR would cost about Rs 26.2 lakh instead of Rs 29.95 lakh.
How much will the Alto installment go down?
About Rs 6,000 to Rs 6,600 a month on a 5-year bank loan with 30% down, for example from Rs 49,325 to Rs 43,149 at HBL’s 14.50% fixed rate.
When will the new car prices apply?
No date has been confirmed. The duty cuts are phased over five years, and each company must announce its own revised prices.
Gaariyan kitni sasti hongi?
Hukoomat ke andazay ke mutabiq 658cc tak ki gaari (Alto) takreeban Rs 3.75 lakh, 998cc (Cultus) Rs 4.40 lakh aur kuch SUVs Rs 10 lakh tak sasti ho sakti hain. Company ki nayi price list abhi nahi aayi.
Alto ki qist kitni kam hogi?
Agar poori kami Alto VXR tak pohanchi to 5 saal ki qist HBL par Rs 49,325 se kam ho kar takreeban Rs 43,149 ho jayegi, aur down payment Rs 1,12,500 kam ho jayega.
Kya abhi gaari book karwani chahiye?
Agar jaldi nahi hai to nayi price list ka intezar behtar hai. Abhi book karein to dealer se likhwa lein ke delivery se pehle qeemat kam hui to aap ko nayi qeemat milegi.
This guide is for general information only and is not financial advice. Prices and rates change often; confirm with Pak Suzuki and your bank before you book.
Related Guides
- Alto on Rs 10,000 monthly installment: is it possible?
- Suzuki Alto installment plan: all banks compared
- Alto installment plan on Meezan Bank
- HBL car loan
- Car Ijarah vs car loan
- Tax on car registration (filer vs non-filer)