Pressure on utility vehicles to weigh on M&M

10% cess hike will impact auto major most, given its large exposure to the utility vehicles segment

The stock of Mahindra and Mahindra (M&M) is down 2.5 per cent over the last two trading sessions after the Union Cabinet cleared the hike in cess on large cars and sports utility vehicles (SUVs) up to 25 per cent from 15 per cent under the goods and services (GST) regime. 

Companies have indicated that they will pass on any hike on account of cess to consumers. Among the listed companies, while Tata Motors and Maruti Suzuki will be affected, the largest impact will be on M&M given that a larger share of its products falls in these segments.

Earlier,