Auto, electronics dealers pull plug on festive stock

Automobile and consumer electronics dealers are treading cautiously ahead of the crucial festive season as they await an imminent cut in Goods and Services Tax (GST) and product prices.

The dealers are going slow on adding inventory to preserve working capital and avoid locking funds in input tax credit should the anticipated rate cuts come into effect. Mahindra & Mahindra has advised its dealers to stock only what can be sold easily, particularly steering clear of high-cess models. “Dealers have been advised to defer purchases of vehicles attracting higher cess, especially in the absence of clarity on how pre-ratechange stock will be treated,” said a person aware of the matter.