On June 21st, the Ministry of Industries and Production sent an application to the Finance Division and the Federal Board of Revenue (FBR) opposing the new tax policy on hybrid electric vehicles (HEVs). The notice highlighted both existing and new companies investing in hybrid technology in Pakistan. Notably, point 5 of the notice states, “Additionally, companies such as Honda, Suzuki, and Kia are planning similar investments in the near future.”

This clearly indicates that Honda, Suzuki, and Kia are planning to introduce new hybrid cars or hybrid variants in their CKD (Completely Knocked Down) lineup.

While the exact plans of these companies are not public, we can make educated guesses based on Pakistan’s economic and market conditions. Here’s what our market experts predict:

Suzuki

Suzuki has yet to venture into hybrids in Pakistan, but combining their reputation for fuel-efficient cars with hybrid technology could yield impressive results. Suzuki already offers top-tier fuel-efficient models like the Alto, WagonR, and Cultus. Adding hybrid systems could bring their fuel economy closer to that of a 150cc motorcycle.

Our estimate is that Suzuki will introduce the following hybrid model:

Suzuki Alto ENE Charge (mild-hybrid): This technology is widely used in Japan in models such as the Suzuki WagonR, Stingray, and Alto JDM.

Salient features of Alto ENE Charge:

660cc Engine

52 HP power

Mild-hybrid battery

35 Km/l fuel economy

Honda

Honda currently doesn’t offer any CKD HEV models in Pakistan. If they plan to launch a hybrid model, it is likely to be the:

Vezel Hybrid: Internationally known as the HR-V hybrid, it is highly probable that Honda will introduce this model in Pakistan. Due to the lack of HEV infrastructure, Honda Pakistan previously introduced the non-hybrid HR-V. However, with potential improvements in infrastructure, the Vezel hybrid could be the first HEV introduced.

Salient features of Vezel Hybrid:

1.5L i-Vtec engine

150 BHP power

155 Nm torque

5 Ah HEV battery capacity

Kia

Kia Sportage 5th Generation Hybrid: There have been rumors that Kia will soon bring the new generation of the Sportage to Pakistan. Currently, the fourth-generation Sportage is available, and the fifth generation is expected by the end of 2024. The new generation comes with a hybrid option, making it a likely candidate for Kia's first hybrid investment in Pakistan.

Salient features of Sportage HEV:

1.6-liter four-cylinder engine

227 HP power

196 Nm torque

13.8-kWh hybrid battery capacity

Another potential HEV from Kia could be:

KIA Sorento Hybrid: The Sorento is expected to be launched as a hybrid in Pakistan, given the market’s preference for fuel-efficient vehicles. The Sorento is already available as a hybrid internationally, and it would be a strategic move for Kia to introduce it in Pakistan.

Salient features of Sorento HEV:

1.6L Turbo engine

227 HP power

258 Nm torque

6 Ah HEV battery capacity

These predictions reflect the growing interest and investment in hybrid technology by major automotive companies in Pakistan. The introduction of hybrid vehicles could significantly impact the local market, offering more fuel-efficient and environmentally friendly options for consumers.