Cess hike not expected to impact materially: Angel Broking

Views of Mr. Shrikant Akolkar (Research Analyst - Automobiles, Angel Broking):

"The likely hike in the cess rate from current 15% to 25% is not expected to see a materially negative impact on the demand for the premium automobiles. The underlying demand remains healthy which is the driving force for the automobile sector. We believe that companies will be able to pass on the cess hikes on luxury vehicle SUVs to customers by price revision."

Source : Equity Bulls

Keywords