Auto Policy 2026-31: What a 2% to 10% Levy on Petrol Cars and Lower EV Tax Would Mean for Prices
Waqas Afzal9 Min Read
The PM-approved draft Auto Policy 2026-31 would add a 2% levy on 1,001-2,000cc petrol and diesel cars and 10% above 2,000cc, and cut sales tax on qualifying EVs, REEVs and PHEVs. It still needs cabinet and IMF approval and has no effective date. Draft estimates for Corolla, Fortuner, Tiggo 7 PHEV, XPeng L03 and Chery Q.