Impact of New Auto Policy on PHEVs in Pakistan: BYD Shark 6 & GWM Tank 500

Auto Policy 2026-31 is expected to significantly change the landscape of the Pakistani electric & hybrid vehicle market as the Government has taken a fresh approach on Battery Electric Vehicles (BEVs), Range Extended Electric Vehicles (REEVs) and Plug-in Hybrid Electric Vehicles (PHEVs).

The policy is timely for the PHEV market in Pakistan, as numerous models like the BYD Shark 6 and GWM Tank 500 PHEV have already become available. Both are hybrid cars that run on both an internal combustion engine and a rechargeable battery pack, so they can be used as hybrid drive cars for shorter distances, using electric power, and then can switch to the petrol engine for longer journeys.

In the approved draft, the PHEVs are still to be categorized under the New Energy Vehicle (NEV) category and thus will not be treated as favorably as fully electric vehicles. The government has specifically ordered BEVs to be treated best, followed by REEVs, and then PHEVs. 

What the New Auto Policy Says About PHEVs

The draft policy suggests that the sales tax on NEVs, their CKD kits, parts and inputs/raw materials will be 1% while exemption will be granted from Federal Excise Duty (FED), Capital Value Tax (CVT) and Withholding Tax (WHT). The policy, however, treats BEVs, REEVs and PHEVs differently with regard to their treatment. 

It's a distinction that matters to PHEV buyers as the government begins to make a distinction between all electrified vehicles.

The overall policy framework is aimed at fostering the electrification of the system and at the same time ensuring local manufacturing and phasing out tariffs incrementally. The government has also proposed to raise the limit on NEV financing from Rs3 million to Rs10 million with a maximum repayment period of five years in comparison to the three years limit for the earlier. 

What Does This Mean for BYD Shark 6?

One of the leading PHEV in Pakistan is the BYD Shark 6. As per the ongoing market listings, the locally available model can be found around Rs19.95 million. 

The NEDC (new European driving cycle) electric range of the Shark 6 is 100 km while the combined range is claimed to be 800 km. BYD Pakistan says that the 650 Nm of torque and 436 hp power system in the vehicle is also impressive. It is also equipped with 60 litres fuel tank and all-wheel-drive. 

Taxes can have a significant impact on the price of an average car in this range.

The new policy may offer some comfort in the government's NEV tax policy, but PHEVs are not “first in line.” Don't assume that the Shark 6 will get the same care as a pure battery electric vehicle.

The final cost will also be determined by how it is eventually sold in the policy, including the tariff for PHEVs at the CBU and CKD levels.

GWM Tank 500 PHEV Also in Focus

Another significant example is the GWM Tank 500 PHEV (which is also manufactured locally in Pakistan).

In January 2026, GWM Pakistan launched the locally manufactured HEV and PHEV models of the Tank 500. The PHEV was priced at an ex-factory Rs22.5 million, the HEV at Rs20.5 million. 

The Tank 500 PHEV is therefore not in the same category as a completely imported CBU as it offers potential CKD kit, parts and domestic value addition policy benefits.

This is especially so in the context of the new policy's focus on localisation and local manufacturing. The incentives for CKD production are now being linked to the value addition and export capability of the region. 

PHEV vs BEV: The Policy Difference

The new framework clarifies various categories of electrified vehicles.

This is part of the government's broader strategy to promote the use of EVs and progress toward local EV manufacturing and charging facilities.

The policy aims for 30% of EVs here and now and offers support for charging infrastructure. 

In the case of PHEVs, this benefit is that they can run on both electricity and petrol. But the government's policy direction is trending more and more toward full electrification over plug-in hybrid technology.

Will PHEV Prices Decrease?

The new policy may open up opportunities for reduced prices, but a significant price cut is not being guaranteed.

The final price of a PHEV is influenced by a number of things, such as whether the vehicle is brought as a CBU or it is locally assembled, customs duties, sales tax, FED, exchange rates and local production costs.

It also aims for gradual reduction of customs duties as opposed to abolition of import protection. The proposed tariff structure would result in substantial duties in the early years of the policy for large vehicles such as SUVs and pick-ups. 

Thus, the impact of the BYD Shark 6 and the BYD Tank 500 PHEVs can vary according to its production and import process.

For those purchasing PHEVs, the following is relevant:

What It Means for PHEV Buyers

The suggested NEV incentives may also lower the overall tax load in some cases to that of a conventional vehicle, while the increased financing limit may make high-dollar electrified vehicles much easier to finance.

Meanwhile, the government's new incentive ranking system puts PHEVs after BEVs, so future policies may increasingly push fully electric vehicles.

It will therefore be relevant to the buyer to investigate not only the headline tax rate of these two vehicles (BYD Shark 6 and GWM Tank 500 PHEV), but to evaluate how they are assembled, what duties apply, financing and running costs.

What Happens Next?

The government has approved Auto Policy 2026-31, which still has to go through certain formalities to be implemented. The framework is said to be under legal and IMF scrutiny prior to proceeding through the final approval process. 

The policy is a move towards a more differentiated strategy for the PHEV market in Pakistan.

As the new framework unfolds, the BYD Shark 6 and GWM Tank 500 PHEV are poised to be key models to keep an eye on. The final price and tax treatment will be determined by the specifics of the policy and notably the regulations for the use of PHEVs, CKD assembly and local value added.

When buyers are following the price trend of PHEVs, new car launches and Pakistan's changing automotive policies, SpotMV will keep reporting the developments that may impact the country's growing EV market.