Automakers pause deliveries as cess losses loom and dealer inventories get stuck

Dealers already paid the tax on stock—now recovery looks bleak

As India’s cess is set to be abolished, automakers and dealers are scrambling because dealers have already paid the cess on their existing vehicle inventories. With recovery of that paid cess looking bleak, supply and delivery plans are being disrupted, forcing automakers to slow deliveries while dealers absorb stalled stock and losses.