GST impact: Audi sees double-digit fall in volume

The increase in cess will immediately not have any major impact on Audi's investment strategy

The increase in cess on large cars and sports utility vehicles (SUVs) may bring down the luxury car volume by 10 per cent for companies like Audi, the India head of this luxury carmaker said. 

“When the luxury cars were taxed at 43 per cent under the GST (28 per cent GST and 15 per cent cess), we were expecting a double digit growth. But it is unlikely to happen now. We are now expecting a double digit decline since the cars will become more expensive than the pre-GST prices,” Rahil Ansari, head of Audi India, said. 

Once the increase