MG says hybrid SUVs in Pakistan fail cost-effectiveness test

Hybrid vehicles in Pakistan are more expensive than the fuel savings they offer, according to MG Motors Pakistan, raising concerns over their cost-effectiveness in the local market.

Syed Asif Ahmed, General Manager of MG’s Marketing Division, told reporters that while over 35,000 SUVs priced above PKR 8 million were sold in the past year — half of them hybrids — consumers are paying significantly more for HEVs (Hybrid Electric Vehicles) than for conventional petrol models, with limited financial return.

“Globally, the hybrid premium shouldn't exceed 10% over petrol cars, but in Pakistan, it averages 45%,” Ahmed said. “A C-segment SUV hybrid can cost PKR 12 million, while its petrol equivalent sells for PKR 8 million — a PKR 4 million gap that takes over 7.5 years to recover based on average fuel savings and driving habits.”

MG claims to have sold over 16,000 vehicles in Pakistan, including 2,000 Plug-in Hybrid Electric Vehicles (PHEVs), which Ahmed says provide better value for urban commuters. He noted that the MG HS PHEV remains the only PHEV option in the local market, despite offering advanced technology at a lower price than many HEVs.

Ahmed also criticized common misconceptions about hybrid technology. “Hybrids work best in stop-and-go urban traffic. On highways, they’re no more efficient than petrol cars. Plus, maintenance costs are the same, making the total cost of ownership higher due to the steep initial price,” he said.

Electric Vehicles (EVs) are more efficient and maintenance-free for up to 15 months, but high prices and poor charging infrastructure hinder adoption, he added. PHEVs, which combine EV driving with hybrid backup, are currently the most practical choice for Pakistan, according to MG.

The automaker emphasized its market leadership in technology and specifications, citing over 350 million miles driven by MG vehicles in Pakistan since their 2021 launch. Ahmed concluded that Pakistani consumers are becoming more informed, but the lack of pricing parity and infrastructure continues to challenge the adoption of cleaner, more cost-effective mobility solutions.