NEW DELHI: Automobile companies selling large sedans and SUVs are witnessing a spurt in demand since last month, but that isn’t good news for the industry. Industry executives say they may have to roll back those, or even increase the prices beyond pre-GST levels, if the cess is raised to 25%. The feeling is that when the cess is increased, it will impact demand,” said Anurag Mehrotra, the managing director at the Indian unit of the American automaker.The sudden increase in demand has left high-end carmakers unenthused, as they fear the impending cess hike to flatten out demand. It is likely to increase prices if the cess is increased.“There will be more clarity when the GST Council meets on September 9. But the increase will be passed on to customers…India is a price-sensitive market and there will be some impact,” Kalsi said.

Source: Economic Times September 07, 2017 18:00 UTC