New Delhi [India], October 10 (ANI): The benefits of the Goods and Services Tax (GST) rate rationalization are yet to play out meaningfully, and its impact on domestic-focused automobile companies is expected to be visible only from the third quarter of FY25, according to a report by HDFC Securities.
The report stated that while the rationalization is likely to give a fillip to auto companies catering to the domestic market, leading to a revival in growth rates, the real impact will be seen gradually.
"We will only see it play out meaningfully from Q3FY25," the report noted.
The report highlighted that a shortage of truck trailers used for vehicle transport has led to the deferment of some wholesales from September to October, which capped wholesale volumes in the second quarter of FY25