The government has notified hike in GST cess on a range of cars from mid-size to hybrid variant to luxury ones to a maximum of 25 per cent, from earlier 15 per cent.

There is an atmosphere of policy uncertainty in auto sector, with the government, first lowering and then increasing the effective tax on big vehicles under GST. Though yet to be implement (since the Central Government will have to move legislative amendments to make this change effective), automakers feel the need of a long-term policy roadmap for the industry.

The report "In-vehicle infotainment market by component published by MarketsandMarkets™, the in-vehicle infotainment market is estimated to be $15.20 billion in 2016 and is projected to reach $30.47 billion by 2022, at a CAGR of 11.79 per cent.

ales of passenger vehicles in June declined the sharpest since March 2013 as dealers stayed away from buying stock due to ambiguity over the goods and services tax (GST). Passenger vehicle sales declined 11.21 per cent to 198,000 units.

A number of other India-made luxury vehicles have also become lighter on the pocket, as manufacturers offer benefits ranging from price reductions and attractive financing schemes. The Goods and Services Tax (GST) has been one of the key things that has caught the attention of the market given its implications on earnings of companies.

Few days were decisive one for Toyota Kirloskar Motor. It was the day the GST Council met to review tax rates in a vast swathe of product categories. By the end of the meeting, rates on 66 products were brought down, including pickles, agarbattis and cashew nuts.

Auto makers have asked the government to reduce GST rate on hybrid vehicles to 18 per cent, saying clubbing the eco-friendly automobiles with big luxury models is "incomprehensible".

Interest rates for financing of used cars and SUVs came down by 100-125 basis points (100 basis points = 1 per cent) in the past 12 months, twice as fast as new car loans.

The auto industry termed the clubbing of hybrid vehicles with luxury cars in GST rates as environment unfriendly and regressive, saying it went against plans to promote green vehicles.