Honda Cars India Ltd. is worried about a potential hike in the compensation cess on luxury cars under the Goods and Services Tax regime, Yoichiro Ueno, its president and chief executive officer told BloombergQuint.
The company has seen an increase in demand after the tax burden on luxury vehicles was reduced under GST, Ueno said on the sidelines of Society of Indian Automobile Manufactures' (SIAM's) annual convention in New Delhi. However, a cess hike may reverse that phenomenon as consumers postpone purchase decisions, he added.
Honda's latest models launched at the start of the year have received good market response, Ueno said, adding that the company will work towards increasing their supply.
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