Auto and SUV makers cheer less than expected hike in cess

Share
Auto and SUV makers cheer less than expected hike in cess

The hybrid vehicle cess has not been increased, effectively giving these vehicles a 2-7 per cent cess relief, he added. This is a good step, since these also need promotions. "We hope this demand to continue through the rest of the year".

Last week, GST Council increased cess on mid-sized cars by 2 per cent, on large cars by 5 per cent and that of the SUVs by 7 per cent.

Since the biggest reform in the country's tax structure came into effect and instantly caused auto prices to tumble down, the GST Council approved a cess hike on Saturday, which will take prices of many cars close to the pre-GST era. "Also, now there are a few more slabs of taxes on the auto industry as compared to the erstwhile excise duty structure", he said. The council which is headed by Arun Jaitley decided not to levy additional tax on small cars of up to 1200 cc in both the segments - viz Petrol and Diesel.

According to Vishnu Mathur, director general, SIAM, "The PV numbers could be ascertained to remain sustainable hereon because the basic economies have become right". The impact on rural markets is slowly wading off.

CV sector moving into growth mode for the long termThe commercial vehicle industry seems to be leaving behind the disruption of implementation of BS IV norms and GST and gradually returning to growth path.

It says the main drivers of growth for vehicle sales are the GDP growth of around 7%, repo rate decreased in the third bi-monthly monetary policy for this financial year, good monsoon season and higher farm income, and higher income levels and consequently higher disposable income.

The industry produced a total 11,950,356 vehicles including passenger vehicles, commercial vehicles, three wheelers, two wheelers and quadricycle in April-August 2017 as against 10,919,150 in April-August 2016, registering a growth of 9.44 percent over the same period previous year.

In the April-August 2017 period, overall CV sales are up marginally by 1.58 percent with total volumes of 276,147 units. Last week, an ordinance was promulgated to hike the cess from 15% to up to 25%. The same grew around 17% in July and about 3% in June.

Sales of passenger cars stood at 198,811 units, registering a growth of 11.80 percent (August 2016: 177,829). Within the Two Wheelers segment, Scooters and Motorcycles grew by 18.27 percent and 7.89 percent respectively, while Mopeds declined by (-) 8.60 percent in April-August 2017 over April-August 2016.

Share

Advertisement

Related Posts

Rampaging City tear Liverpool apart with five goals
Liverpool had lost their most important player, a player whose powerful running and willingness may define the Klopp era. Moss was criticised for showing the red, but he seemingly had little choice with the challenge deemed serious foul play.

Banco Santander - Chile ADS (NYSE:BSAC) Experiences Lighter than Average Trading Volume
If you are reading this story on another site, it was illegally copied and reposted in violation of USA & global copyright law. The company had revenue of $704.02 million during the quarter, compared to the consensus estimate of $458.92 million.

Eaton Vance Corporation (NYSE:EV) Shares Sold by Sei Investments Co
The rating was maintained by Argus Research with "Buy" on Tuesday, August 4. (NASDAQ:CASH) on Monday, June 26 with "Buy" rating. Eaton Vance Tax-managed Global Diversified Equity Income Fund (NYSE:EXG) institutional sentiment increased to 1.68 in Q4 2016.

Piyush Goyal assures people of safety in new Bullet Train project
Talking about the bullet train, Goyal said that it would complete its journey between Mumbai and Ahmedabad in just around 2 hours. The 508-km Mumbai-Ahmedabad High Speed Rail Project will entail an estimated cost of Rs.1,10,000 crore.

Hemingway's house, cats survive Hurricane Irma
He told MSNBC that the cats, who roam freely around the museum's grounds, had sought shelter indoors as the hurricane approached. Mariel Hemingway wants the cats to evacuate from her grandfather's historic Key West home, but the caretaker is staying put.

Kid Rock gloats over Sharpton kid's bust
Kid Rock ripped an "idiot" reporter at the New York Post on Monday for getting fooled by a Twitter user impersonating Rock. In one postscript on his note, Kid Rock writes, "P.P.S".

Volkswagen to offer electric versions of all of its vehicles by 2030
The Chevy Bolt at $36,620 and the redesigned Nissan Leaf at $30,875 also are key competitors in that space. Volkswagen estimates that about 150 Gigawatt hours of batteries will be needed in the near future.

Kris Kobach and His 5313 Fraudulent Voters
One official administering the New Hampshire voting process recognized the system's failure to authenticate ballots. The Brennan Center hammered Kobach , dryly congratulating him for discovering that college students vote.

Gas prices in DE still rising, but less dramatically
GasBuddy is known for helping people find cheap gas, but now it's helping people find whatever gas is available. The survey showed the average cost of fuel stood at $2.72 per gallon in Las Vegas on Monday.

Utah to remember 9/11 with half-staff flags
Some call it the 9-11 Anniversary, others call it Remembrance Day, and still others call it Patriot Day. Flags also will be at half-staff on all public buildings, grounds and facilities throughout the state.

© 2015 ExpressNewsline. All Rights reserved.