Maruti Suzuki is upgrading its sales channel to provide a seamless experience to customers.
For manufacturers of larger cars, such as Mercedes Benz, Audi, BMW, Honda Cars & Toyota, the impact is expected to be more pronounced once the revised levy comes into effect.
The salary hike under the Seventh Pay Commission recommendations and the payment of arrears would, industry executives hope, cushion the cess hike impact.
Under GST, hybrid vehicles are taxed at the highest rate, at par with more polluting sport utility vehicles. These attract a levy of 43% more than that on smaller petrol and even diesel vehicles.
The company had posted net profit of Rs 100.85 crore in the year-ago period.
Hero MotoCorp sold a total of 38.9 million units until the end of July 2017, overtaking the cumulative sales of 37.4 million two-wheelers registered by Hero Honda in its 27 years.
Auto industry executives said they may have to re-evaluate their business plans, including on local manufacturing, because of the sudden change in the tax structure.
Collaborating with two-wheeler dealer partners, the company expects, will help it expand quickly to rural markets, which bring in nearly a third of volumes for Maruti.
The company had posted net profit of Rs 315 crore in the corresponding period of the last financial year.
Shinji Aoyama, chief officer, regional operations (Asia & Oceania), Honda Motor Company, said, "The growing Indian 2W market is top priority for Honda.
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