Luxury vehicle manufacturers on Monday hit out at the move to hike cess on large cars and SUVs to 25 per cent, saying it was against the spirit of liberal market dynamics and would affect future plans of expansion under 'Make in India' initiative.

Toyota Kirloskar Motor, Mercedes-Benz, Audi, and BMW were unanimous that increase in cess on large, luxury cars and SUVs that had become cheaper after GST rollout would dampen the spirits of the industry across the entire value chain. The companies also said a constant shift in policy makes long-term planning for the market highly risky, ...