New Delhi, Sept. 1 -- The auto industry is likely to get a significant boost as the government is expected to announce Goods and Services Tax (GST) rate cuts soon.

According to a report by Jefferies, the outlook for the two-wheeler (2W) and passenger vehicle (PV) industries has been revised upward, with volumes for FY25-28E increased.

It stated, "We raise FY26-28E 2W and PV industry volumes by 2-6 per cent. We expect 2Ws to grow at a faster 10 per cent CAGR over FY25-28E vs 8 per cent for PVs."

The report highlighted that volumes in the 2W segment are expected to grow at a faster pace of 10 per cent CAGR over FY25-28E, compared to 8 per cent CAGR for PVs.

The faster growth projection for 2Ws comes on the back of a benign base, as FY25...