HYUNDAI

** Shares of Waaree Energies WAAN.NS up 5.6%, NTPC Green Energy NTPG.NS up 4%, Hyundai Motor India HYUN.NS rise 2.6%
** WAAN, NTPG, and HYUN among shares being added to FTSE Russell index via quarterly rejig happening on Friday, leading to inflows
** FTSE rejig is expected to result in a net inflow of ~$150 million into India, Nuvama Alternative and Quantitative Research said
** WAAN shares down 1.3% YTD, while NTPG down 15.2% and HYUN up 8.5%

(Reporting by Sethuraman NR in Bengaluru)

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June 16 (Reuters) - Hyundai Motor Co 005380.KS:

• COMMENCES PRODUCTION OF PASSENGER VEHICLE ENGINES AT TALEGAON PLANT

Source text: ID:nBSE3cfGMF

Further company coverage: 005380.KS

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** Hyundai Motor India HYUN.NS rises 3.3% to 1,922.10 rupees; set to gain for fourth straight session

** Car maker holds 26.13% stake in FPEL TN Wind Farm post allotment of shares

** Shares allotted after release of 165.9 mln rupees ($1.9 mln) as first tranche by HYUN for share subscription

** HYUN gains ~6% YTD

($1 = 85.6690 Indian rupees)

(Reporting by Vijay Malkar)

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Updates with statement from Skoda Auto Volkswagen India in paragraphs 7 and 8

By Neha Arora and Aditi Shah

NEW DELHI, June 2 (Reuters) - Tesla TSLA.O does not want to produce cars in India, a federal minister said on Monday as the government finalised its electric vehicle policy, with the EV giant's plans currently focused on importing cars into the country.

India will significantly cut import taxes for foreign automakers that pledge to invest in domestic EV production lines. The policy, which has been in the works for a year, was originally designed to attract Tesla to set up manufacturing in the country but CEO Elon Musk put his investment plans for India on hold last year.

Tesla's immediate plan is to import cars into India even though Musk has repeatedly said that the country's tariffs on imported vehicles are too high.

Tesla did not immediately respond to an email seeking comment outside of U.S. business hours.

Mercedes-Benz MBGn.DE, Volkswagen VOWG.DE, Hyundai 005380.KS and Kia 000270.KS have, however, shown interest in India's EV manufacturing policy, the minister for heavy industries, HD Kumaraswamy, told reporters.

"Tesla, we are not actually expecting (interest) from them ... They are not interested in manufacturing in India," Kumaraswamy said.

Skoda Auto Volkswagen India said it was closely monitoring the development of EV-related policies in India and assessing their implications.

"Based on this, we define the appropriate next steps in line with our long-term strategy," the company said in a statement.

Companies will be allowed to import a limited number of electric cars at a reduced duty of 15% versus the current 70% if they commit to investing around $500 million to build EVs in the country, the Ministry of Heavy Industries said in a statement.

The companies will be required to set up manufacturing facilities in India, the world's third-largest car market, commence operations within three years of approval and meet certain local content requirements.

Domestic players like Tata Motors TAMO.NS and Mahindra & Mahindra MAHM.NS have invested millions of dollars in local EV manufacturing, with more to come, and lobbied against duty cuts.

The new scheme allows limited investment in machines, research and charging. A lack of fast chargers has deterred potential purchasers in the country's nascent EV market.

India's EV sales, dominated by Tata Motors, accounted for just 2.5% of total car sales of 4.3 million in 2024. The government wants to increase this to 30% by 2030.

(Reporting by Neha Arora and Aditi Shah in New Delhi, writing by Sethuraman NR in Bengaluru; Editing by Mrigank Dhaniwala, Kirsten Donovan)

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By Aditi Shah

NEW DELHI, May 30 (Reuters) - India's biggest automakers are seeking to block a pollution management body's attempts to promote hybrid vehicles in government fleets in and around New Delhi, saying it will disrupt adoption of cleaner battery electric cars and hit investments, documents show.

Companies, including Mahindra & Mahindra MAHM.NS and Tata Motors TAMO.NS, are lobbying the ministry of heavy industries to overturn an attempt to equate hybrids with EVs and ensure incentives for all government programmes are restricted to electric models, five company letters seen by Reuters show.

In a May 2 advisory, the Commission for Air Quality Management, tasked with fixing severe air pollution levels in India's capital region, categorised strong hybrids as "cleaner vehicles" recommending their use in government fleets, a move that caught carmakers by surprise.

Given the "ultra-high density" of vehicular traffic in New Delhi and nearby areas, there is a need to move away from "polluting vehicles, dependent purely on fossil fuels like diesel and petrol", the commission said.

Automakers, however, argue that hybrids - which use a battery and combustion engine - are reliant on fossil fuels whereas EVs produce zero tailpipe emissions, making them an effective solution for the urban air pollution crisis.

"Our plea is for government policy and incentives to stay firmly focused only on EVs," Mahindra said in its May 15 letter to the heavy industries ministry.

Along with Tata and Mahindra, JSW MG Motor, Hyundai Motor and Kia Corp have also written to the ministry in support of electric cars, rekindling their face-off with hybrid proponents like Toyota Motor 7203.T and Maruti Suzuki MRTI.NS.

Tata, Mahindra, JSW MG Motor, Hyundai 005380.KS, HYUN.NS, Kia Corp 000270.KS and the ministry of heavy industries did not respond to requests for comment.

POLICY UNCERTAINTY

The potential opportunity is huge - of the 847,544 vehicles in use by government agencies across India in 2022, only 5,384 were EVs - less than 1%, official data showed.

A major concern for EV makers is that support for hybrids dilutes the Indian government's own policy which incentivises only EVs in its production-linked schemes and other programmes.

It will also create confusion among car buyers, companies and investors, hurting EV sales at a time when their growth is already slowing due to inadequate charging infrastructure and high upfront vehicle costs.

"The lack of a consistent and predictable policy environment may deter long-term investors ... particularly in high-capex, technology-intensive sectors like EV," said Tata, which has raised $1 billion from private equity firm TPG TPG.O for its EV push.

Tata in its May 15 letter said, the commission's move will undermine current and proposed EV investments, impact India's global image as an investor friendly destination and send mixed signals to international stakeholders.

Carmakers in India are expected to invest over $10 billion through 2030 to manufacture lithium-ion cells, EVs and batteries, ratings agency Moody's said in a report, adding EV adoption rates in India are still low versus China, Europe and the U.S.

Mahindra's EV unit counts Singapore's Temasek and British International Investment among investors while Hyundai plans to invest over $500 million in EVs in India.

(Reporting by Aditi Shah; editing by David Evans)

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May 16 (Reuters) - Hyundai Motor Co 005380.KS:

• HYUNDAI MOTOR INDIA LTD - SEES IMPACT ON PBT DUE TO NEW PLANT DEPRECIATION IN FY26

• HYUNDAI MOTOR INDIA LTD - SEES DEMAND SENTIMENT CONTINUES TO BE WEAK IN FY26

• HYUNDAI MOTOR INDIA LTD - WILL STRIVE TO MAINTAIN DOUBLE DIGIT EBITDA MARGIN IN FY26

• HYUNDAI MOTOR INDIA - ABOUT 70 BILLION RUPEES STRATEGIC INVESTMENTS IN FY2026

• HYUNDAI MOTOR INDIA LTD - REMAIN CAUTIOUSLY OPTIMISTIC ON DOMESTIC DEMAND OUTLOOK IN NEAR-TERM

• HYUNDAI MOTOR INDIA - EXPECT FY26 DOMESTIC GROWTH TO BE IN LINE WITH ESTIMATES OF LOW-SINGLE DIGIT

• HYUNDAI MOTOR INDIA LTD - AIMING FOR 7-8% VOLUME GROWTH IN EXPORTS INFY26

• HYUNDAI MOTOR INDIA - ANNOUNCE LAUNCH PIPELINE OF 26 PRODUCTS BY FY2030 COMPRISING 20 ICE, 6 EVS

Source text: [ID:]

Further company coverage: 005380.KS

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Corrects syntax in headline

May 15 (Reuters) - Indian automakers posted a near 4% jump in sales to dealers in April, led by strong demand for sport utility vehicles (SUVs), data from an industry body showed on Thursday.

Domestic sales of all cars in the country to dealers rose to 348,847 units last month, compared to 335,629 in April last year, according to data from the Society of Indian Automobile Manufacturers (SIAM).

Mahindra & Mahindra MAHM.NS posted a 28% jump in sales in April, overtaking Hyundai India HYUN.NS to the No.2 spot by overall sales in the in the world's third-largest car market.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Savio D'Souza)

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May 1 (Reuters) - Three of India's top four carmakers reported weak sales to dealers in April, company data showed on Thursday, as buyers delayed purchases amid concerns about slowing economic growth.

Market leader Maruti Suzuki MRTI.NS posted a marginal 0.6% year-on-year rise, while Hyundai Motor India HYUN.NS and Tata Motors TAMO.NS clocked declines of 11.6% and 5.1%, respectively.

Mahindra & Mahindra MAHM.NS, in contrast, reported a near 28% jump in monthly sales, aided by strong demand for its 'XUV 3X0' and five-door 'Thar' SUVs.

That helped the 'Scorpio' maker overtake Hyundai and Tata Motors to the no. 2 spot in India's car market for the second time this year.

The four automakers together account for 80% of a market that saw record sales of 4.3 million units last year. Their combined sales were up about 1.4% in April, led largely by Mahindra.

WHY IT MATTERS

India's auto sector makes up 7% of GDP and is a major employer.

The country's economic growth is seen slowing down, with the central bank projecting full-year GDP growth of 6.5% for fiscal 2025, lower than the 9.2% recorded the year before.

KEY CONTEXT

Car sales are cooling as the post-pandemic pent-up demand, which propelled sales to record highs in past years, has faded. Growth slowed to 2% in financial year 2025, from 8% the previous year and 27% in fiscal 2023, with industry experts attributing the moderation to a broader economic slowdown.

Manufacturers expect car sales to grow 1%-2% this year, although some analysts expect growth to pick up by June or September on lower interest rates and a cut in personal income tax.

Phillip Capital said that buyers were postponing purchases, with the trend likely to continue for up to four months.

Maruti has held up better due to SUV demand and fleet sales, while Hyundai and Tata have struggled amid fewer new launches as they derive two-thirds of their sales from SUVs.

BY THE NUMBERS

(Reporting by Nandan Mandayam in Bengaluru; Editing by Sonia Cheema)

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April 15 (Reuters) - Indian carmakers' sales to dealers grew 2% in financial year 2025, as steady demand for larger sport utility vehicles made up for weaker sales of small cars and sedans, industry data showed on Tuesday.

Carmakers sold a record 4.3 million units in the world's third-largest car market, according to the Society of Indian Automobile Manufacturers (SIAM), but the growth was at least a four-year low.

Since rising by 12% in fiscal year 2022 and 27% in 2023 to what was then a new record, India's domestic car sales growth has moderated, rising 8% in 2024 and 2% in 2025.

India's financial year runs from April through March.

The manufacturers in February estimated the industry would grow 1% to 2% in the current fiscal year, but analysts have called the forecasts conservative.

Carmakers have had to offer higher discounts for longer to prop up demand, as pent-up demand that had led growth in previous years fizzled out, analysts and industry insiders have said.

SIAM said it expects domestic demand to be boosted by successive rate cuts by India's central bank, as well as a cut in personal income tax announced earlier this year.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Varun H K)

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By Aditi Shah and Shivangi Acharya

NEW DELHI, April 7 (Reuters) - The European Union wants India to eliminate tariffs on car imports under a long-pending trade deal and Prime Minister Narendra Modi's government is willing to sweeten its current proposal to seal the talks, sources told Reuters.

India is open to the phased reduction of tariffs to 10% from more than 100%, two industry sources and a government official said. That is despite industry lobbying for India to retain at least a 30% tariff even if it starts reducing the levy, and also not tinker with import duties on EVs for four more years to protect domestic players.

The EU's demands come weeks after U.S. President Donald Trump's administration sought a similar elimination of import duties on cars, including EVs, as part of bilateral trade talks with India, piling pressure on domestic carmakers.

Tariff cuts will be a victory for European carmakers such as Volkswagen VOWG.DE, Mercedes-Benz MBGn.DE and BMW BMWG.DE, widening their access to India. It could also be a win for Elon Musk's Tesla TSLA.O which will begin sales of imported EVs in India this year probably from its Berlin plant.

"EU has come back asking for a better deal and India wants to make a better offer," said one of the industry sources.

India's commerce ministry conveyed the EU's demands and India's stance to officials from the heavy industries ministry and auto industry representatives in a meeting last week, the three sources said.

The sources, who have knowledge of the talks, spoke on condition of anonymity because the negotiations are ongoing and private.

The European Commission declined to comment on specifics but shared a readout of its last round of talks with India in March.

"For many of the key areas, the EU and India have different approaches, objectives ... This translates, in some cases, in different levels of ambition," Olof Gill, commission spokesperson for trade said in a statement.

India's commerce ministry and the Society of Indian Automobile Manufacturers (SIAM), which represents major carmakers on the world's third-largest car market, did not respond to emails seeking comment.

HEAVILY PROTECTED MARKET

India's 4 million-unit-a-year car market is one of the most protected in the world and domestic carmakers have argued sharp tariff cuts would wipe out investment in local manufacturing by making imports cheaper.

Companies such as Tata Motors TAMO.NS and Mahindra & Mahindra MAHM.NS have especially lobbied against lowering import tariffs on EVs, saying it would hurt a sector in which they have invested heavily and in which they plan to pump more money.

Similar to its proposal to the U.S., India's auto industry has proposed an immediate reduction of tariffs on a limited number of petrol cars to 70% from more than 100% and then carrying out cuts in phases to 30%. On EVs, carmakers want no tariff cuts until 2029 followed by a phased reduction on limited imports to 30%, the sources said.

While it was not immediately clear if India had already made its 10% tariff offer to the EU, analysts expect both sides to be more flexible in negotiations given the threat of a global trade war and recessionary impact of Trump's hefty tariff increases.

India and the EU have been in trade talks for several years and in February agreed to conclude the deal by the end of the year as they look to soften the impact of tariffs.

António Costa, president of the European Council, said last week on social media platform X that it was time to "decisively advance in negotiations with India".

"If the EU is now feeling pressure to strike a deal with India we need to see how we can capitalise on that. It's all about leverage," said the first industry source.

(Reporting by Aditi Shah and Shivangi Acharya in New Delhi; Editing by Kate Mayberry)

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April 1 (Reuters) -

• TOTAL MONTHLY SALES OF 67,320 UNITS IN MARCH 2025

Source text: ID:nBSEwz7bT

Further company coverage: 005380.KS

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NEW DELHI, March 26 (Reuters) - India's Maharashtra state has withdrawn a proposal for a 6% sales tax on electric vehicles priced above $35,000 to encourage adoption at a time when EV sales are still nascent in the country - the world's third-largest auto market.

"We are disincentivising (EVs in the luxury segment) without any reason ... we will not go ahead with this," Devendra Fadnavis, chief minister of the western state, home to India's financial hub Mumbai, told lawmakers in the state assembly on Wednesday.

India's EV market is small, making up about 2% of total car sales of 4 million last year, as worries related to higher pricing and inadequate charging points weigh on adoption. The federal government wants to increase this to 30% by 2030.

A reversal of the proposal, made weeks earlier, comes as global EV giant Tesla TSLA.O is gearing up to sell cars in India where it will compete with homegrown rivals such as Mahindra & Mahindra and Tata Motors.

Mahindra MAHM.NS and Tata TAMO.NS already manufacture EVs in Maharashtra. The state has also attracted investment in new factories, including for EVs, from Hyundai Motor HYUN.NS, 005380.KS and Toyota Motor 7203.T.

The new manufacturing facilities will help Maharashtra become the national capital of electric vehicles, Fadnavis added.

Maharashtra, one of India's wealthiest states, accounts for more than 10% of total car and EV sales in the country. It also has a separate EV manufacturing policy designed to give incentives to companies to build the cars in the state.

($1 = 85.7150 Indian rupees)

(Reporting by Hritam Mukherjee, additional reporting by Vijay Malkar in Bengaluru; Editing by Sharon Singleton)

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March 21 (Reuters) - Mahindra and Mahindra MAHM.NS will increase prices of its SUVs and other commercial vehicles by up to 3% from April, the company said on Friday, becoming the latest Indian carmaker to raise prices to combat rising costs.

Already, market leader Maruti Suzuki MRTI.NS, Tata Motors TAMO.NS and Hyundai Motor India HYUN.NS have said they will hike prices between 2% and 4% from next month.

These higher expenses are due to rising commodity prices, elevated import duties on raw materials and supply chain disruptions.

Mahindra and Mahindra said its price increases will vary depending on the model of the vehicle.

(Reporting by Ananta Agarwal in Bengaluru; Editing by Savio D'Souza)

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** Indian carmaker Hyundai Motor India HYUN.NS gains as much as 2.4% to 1,653 rupees in early trade, last up 1.4%

** HYUN to hike prices by up to 3% from April due to higher input and operational costs

** 18 brokerages' avg rating on stock is "buy", median PT is 2,029 rupees - data compiled by LSEG

** Stock down about 15% since trading debut on October 22

(Reporting by Manvi Pant in Bengaluru)

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March 19 (Reuters) - Hyundai Motor Co 005380.KS:

• HYUNDAI MOTOR INDIA LTD - TO INCREASE PRICES UP TO 3% IN APRIL 2025

• HYUNDAI MOTOR INDIA LTD - PRICE INCREASE DUE TO RISING INPUT COSTS AND OPERATIONAL EXPENSES

• HYUNDAI MOTOR INDIA LTD - PRICE INCREASE TO VARY BASED ON VARIANTS AND MODELS

Source text: ID:nBSE4q5Dyt

Further company coverage: 005380.KS

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March 13 (Reuters) - Ashok Leyland Ltd ASOK.NS:

• INDIA'S FEB 2-WHEELER SALES 13,84,605 UNITS - INDUSTRY BODY

• INDIA'S FEB 3-WHEELER SALES 57,788 UNITS - INDUSTRY BODY

• INDIA'S FEB TOTAL DOMESTIC PASSENGER VEHICLE SALES 3,77,689 UNITS - INDUSTRY BODY

• INDIA AUTO INDUSTRY BODY: UPCOMING FESTIVITIES OF HOLI, UGADI IN MARCH LIKELY TO CONTINUE TO DRIVE DEMAND

Further company coverage: ASOK.NS

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** Hyundai Motor India HYUN.NS slips as much as 4% to 1,661.1 rupees

** Carmaker's total monthly sales drops 2.9% y/y in February

** Co says geopolitical challenges led to drop in sales

** Believes tax reforms in union budget, improved liquidity will provide demand boost to domestic market

** Stock rated "buy" on avg; median PT is 2,029 rupees - LSEG

** HYUN last down 1.7%, extending YTD losses to 4.2%

(Reporting by Meenakshi Maidas in Bengaluru)

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By Arpan Chaturvedi, Aditya Kalra and Aditi Shah

NEW DELHI, Feb 26 (Reuters) - Indian tax authorities have singled out Volkswagen as the only automaker to wrongly classify its car imports for 12 years to evade $1.4 billion in taxes, even as rival Kia changed its practice after being pulled up, court papers show.

Volkswagen is a tiny player in India's car market, which is the third biggest in the world, and its Audi brand lags luxury peers such as Mercedes and BMW. If found guilty it could face dues of $2.8 billion, including penalty and delayed interest.

The court fight over the record tax demand is a matter of "life and death", Volkswagen's Indian unit says. The highest import tax demand in India's history has also rekindled investor worries that lengthy disputes could stymie their plans.

India says Volkswagen used a clandestine scheme to import auto parts in separate shipments, to evade detection and cut taxes, instead of declaring items as "completely knocked down", or CKD, units that face higher taxes of 30% to 35%.

Rebutting Volkswagen's court plea, tax authorities listed 10 carmakers, from Mercedes-Benz MBGn.DE to BMW BMWG.DE and Hyundai 005380.KS, HYUN.NS, that correctly classified their imports, despite using "split consignments" to bring in parts.

South Korea's Kia fell in line after being warned, the authorities said in their 506-page filing, which is not public, but was seen by Reuters.

"Earlier, they were clearing such imports as parts, against which investigation was undertaken," the authorities told the court about the altered practice at Kia, which continues to fight a demand for $155 million in tax.

"Post the investigation, they have started classifying such imports correctly."

This month Reuters reported Kia was contesting a $155-million tax demand from 2024 for the similar import, in separate shipments, of parts for its Carnival luxury minivan. Kia says it is reviewing the matter and cooperating with authorities.

A senior Indian tax official, speaking on condition of anonymity, confirmed Kia had "accepted misclassification" and corrected its process, but cites a lengthy investigation period as justification for contesting the tax demand.

Volkswagen's VOWG_p.DE domestic unit, Skoda Auto Volkswagen, Kia and India's tax department did not respond to queries from Reuters.

The Mumbai High Court is expected to decide within days the outcome of Volkswagen's challenge to its own tax demand.

Volkswagen blames India for taking as long as 12 years to review some shipment records, but tax authorities say the investigation delay came about as the company did not provide necessary documents in time.

The company has also argued the tax demand is contradictory to New Delhi's own tax rules on imports of car parts. Lawyers for the two sides have sparred in recent court hearings over how imports should be classified.

"Don't be the victim here," N. Venkataraman, India's additional solicitor general, said in court last week, while criticising Volkswagen. "If you don't follow the law then we will initiate action."

(Reporting by Arpan Chaturvedi and Aditya Kalra and Aditi Shah; Additional reporting by Nikunj Ohri in New Delhi; Editing by Clarence Fernandez)

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Repeats for Indian morning readership, no change to text.

By Aditi Shah

NEW DELHI, Feb 21 (Reuters) - India's EV policy, which offers import tax cuts for foreign automakers investing in the country, will restrict them from using funds spent on charging infrastructure for such relief, increasing their car manufacturing, a government document shows.

India last year announced a policy aimed at attracting Tesla TSLA.O to manufacture EVs in the country and let such foreign carmakers import cars at a 15% tariff, from around 100% now, but only if they invest at least $500 million for a factory.

But the policy will mandate that automakers can count only 5% of their total EV investment as coming from creation of charging infrastructure, even if they spend much more on the power network, according to government document detailing draft rules which is not public but was seen by Reuters.

The government's plan comes just as Tesla gets closer to entering India with imported cars, having finalised two locations for showrooms. The restriction could upset those automakers who may want to invest a bigger chunk of their planned India investments into creating charging networks, which remain far and few in India.

An industry source privy to discussions with the government said the call is being taken as New Delhi wants companies to prioritise manufacturing, and not just charging networks.

In India's nascent EV market, many buyers have shied away from making purchases due to lack of fast chargers.

"Expenditure incurred on charging infrastructure would be considered up to (a) maximum 5% of the committed investment," the 47-page draft document from January 2025 stated.

The government is holding consultations with carmakers and other stakeholders on the draft rules and will finalise them by next month, said a source with direct knowledge of the matter.

India's ministry of heavy industries, which is spearheading the new policy, did not respond to an email seeking comment.

Tesla in a job advert last week said it is also looking for a "charging developer" who would "develop and manage pipeline of new charging" sites, and select locations for deployment.

The EV giant's chief Elon Musk put on hold his manufacturing investment plans for India last year, amid falling electric car sales globally.

Tesla's immediate India plan is to import cars and sell them in India. Musk and U.S. President Donald Trump however have repeatedly said India's tariffs for cars are too high.

The new draft rules said companies which commit to India manufacturing will also need to meet a minimum turnover of $577 million by the end of the fourth year of operation, and $866 million by the fifth year, to be eligible for lower tariffs on up to 8,000 electric cars per year.

If they fail to do so, they will need to pay a penalty of between 1%-3% of the revenue shortfall.

Other foreign automakers like Hyundai 005380.KS, HYUN.NS and Toyota Motor 7203.T have shown interest in making EVs in India at their existing and new factories.

(Reporting by Aditi Shah; editing by David Evans)

(([email protected]; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))

By Aditi Shah

NEW DELHI, Feb 21 (Reuters) - India's EV policy, which offers import tax cuts for foreign automakers investing in the country, will restrict them from using funds spent on charging infrastructure for such relief, increasing their car manufacturing, a government document shows.

India last year announced a policy aimed at attracting Tesla TSLA.O to manufacture EVs in the country and let such foreign carmakers import cars at a 15% tariff, from around 100% now, but only if they invest at least $500 million for a factory.

But the policy will mandate that automakers can count only 5% of their total EV investment as coming from creation of charging infrastructure, even if they spend much more on the power network, according to government document detailing draft rules which is not public but was seen by Reuters.

The government's plan comes just as Tesla gets closer to entering India with imported cars, having finalised two locations for showrooms. The restriction could upset those automakers who may want to invest a bigger chunk of their planned India investments into creating charging networks, which remain far and few in India.

An industry source privy to discussions with the government said the call is being taken as New Delhi wants companies to prioritise manufacturing, and not just charging networks.

In India's nascent EV market, many buyers have shied away from making purchases due to lack of fast chargers.

"Expenditure incurred on charging infrastructure would be considered up to (a) maximum 5% of the committed investment," the 47-page draft document from January 2025 stated.

The government is holding consultations with carmakers and other stakeholders on the draft rules and will finalise them by next month, said a source with direct knowledge of the matter.

India's ministry of heavy industries, which is spearheading the new policy, did not respond to an email seeking comment.

Tesla in a job advert last week said it is also looking for a "charging developer" who would "develop and manage pipeline of new charging" sites, and select locations for deployment.

The EV giant's chief Elon Musk put on hold his manufacturing investment plans for India last year, amid falling electric car sales globally.

Tesla's immediate India plan is to import cars and sell them in India. Musk and U.S. President Donald Trump however have repeatedly said India's tariffs for cars are too high.

The new draft rules said companies which commit to India manufacturing will also need to meet a minimum turnover of $577 million by the end of the fourth year of operation, and $866 million by the fifth year, to be eligible for lower tariffs on up to 8,000 electric cars per year.

If they fail to do so, they will need to pay a penalty of between 1%-3% of the revenue shortfall.

Other foreign automakers like Hyundai 005380.KS, HYUN.NS and Toyota Motor 7203.T have shown interest in making EVs in India at their existing and new factories.

(Reporting by Aditi Shah; editing by David Evans)

(([email protected]; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))

This is a repeat of an item issued on Wednesday

By Aditya Kalra, Aditi Shah and Nikunj Ohri

NEW DELHI, Feb 12 (Reuters) - India's demand for back taxes running into a record $1.4 billion from Volkswagen, after 12 years of scrutiny, is reigniting concerns that lengthy investigations and litigation could sour the plans of foreign firms in the fastest-growing major economy.

Automakers such as Maruti Suzuki MRTI.NS, Hyundai 005380.KS, Honda 7267.T and Toyota 7203.T face demands for about $6 billion collectively in disputes on income-tax, customs and other payments that go back years, a Reuters analysis shows.

Although Prime Minister Narendra Modi has been courting foreign investors with promises to simplify regulations and uproot bureaucratic hurdles, lengthy tax investigations remain a sore point, often triggering lawsuits that stretch over years.

In one high-profile incident, telecoms company Vodafone won its case against a $2-billion retrospective Indian tax demand after more than a decade of legal battles with New Delhi, including international arbitration at the Hague.

Now, Volkswagen's move on January 29 to sue India for $1.4 billion in tax that the firm called "impossibly enormous" is making foreign companies jittery.

Tax advisers and lawyers say they are fielding nervous queries from clients about how years-old tax cases could come back to haunt them.

Calls are also growing for an amnesty scheme for cases running for years, as India set a three-year window on February 1 to conclude reviews of customs shipments, but the rule excludes old disputes running into billions of dollars.

"The government clearly recognised this now and redressed it, but it is unlikely old tax demand notices will be given any benefit," said Ameya Dadhich, a tax associate at global law firm DLA Piper.

"Such instances can deter foreign companies from investing heavily in India," he added. "An amnesty scheme will be helpful given that around 40,000 tariff disputes are pending."

India's finance ministry did not respond to queries from Reuters.

Modi wants to turn India into a manufacturing hub, but many electronic and auto companies rely on assembly operations using parts for high-end cars or smartphones imported from markets such as China and Europe, often spurring investigations.

Government data shows total pending arrears of service tax, customs and excise levies stood at nearly $53 billion in November 2024, with a whopping 70% disputed in litigation.

In the category of import tariff, or customs disputes alone, India had made tax demands of $4.5 billion by March 2024, with a third of those pending for more than five years.

One tax adviser and a lawyer for a foreign automaker in India said the Volkswagen news sparked a flurry of calls from companies to gather updates on scrutiny of their shipments, to ensure their imports are classified correctly for tax.

TAX BACKLOG

In a move seen as aimed at placating U.S. President Donald Trump, who once called India a "tariff king", New Delhi cut average tariffs on February 1 to 11% from 13%, though they still exceed those of China, Japan and the United States.

Imports of fully built luxury cars face Indian taxes and levies of about 100%, while the rate is 150% for Scotch whisky and wine.

In the highly competitive auto sector, Volkswagen VOWG_p.DE is not alone in facing tax scrutiny.

Maruti has $2.4 billion of tax demands in dispute, with at least one case concerning transactions from 1986. Volkswagen is locked in tussles over $1.2 billion, apart from the most recent demand, while Hyundai faces $488 million in such demands.

India's appeals tribunal for customs, excise and service tax faced a backlog of 80,000 cases, Sanjay Malhotra, then the revenue secretary, said in 2023. With about 20,000 new cases each year, he said, "We are not able to reduce the backlog."

In the case of Volkswagen, New Delhi accuses it of having imported most parts of 14 models in separate shipments before assembling them locally, paying tax ranging from 5% to 15%.

That strategy circumvented the tax of 30% to 35% payable if the same items were imported in a single shipment as a completely knocked down (CKD) unit.

In its court filing to be heard this month in the financial capital of Mumbai, Volkswagen is blaming Indian officials for their "inaction and tardiness" in taking years to review shipment records, some stretching back to 2012.

Had New Delhi wrapped up its reviews earlier, Volkswagen says, it could have challenged the move or re-evaluated its import strategy, but the tax notice now puts "at peril the very foundation of faith and trust" foreign investors desire.

Two government officials who spoke on condition of anonymity said the slowness of Indian bureaucracy and a lack of adequate documentation from Volkswagen both contributed to the delay.

"Long pendency like in Volkswagen's case has a detrimental effect on business," said Shashi Mathews, head of indirect tax practice at Indian law firm, IndusLaw.

"We are seeing an increase in queries from clients wanting to know the fate of their shipment reviews."

(Reporting by Aditi Shah, Nikunj Ohri and Aditya Kalra; Additional reporting by Arpan Chaturvedi; Editing by Clarence Fernandez)

((Email: [email protected]; X: @adityakalra;))

By Aditya Kalra, Aditi Shah and Nikunj Ohri

NEW DELHI, Feb 12 (Reuters) - India's demand for back taxes running into a record $1.4 billion from Volkswagen, after 12 years of scrutiny, is reigniting concerns that lengthy investigations and litigation could sour the plans of foreign firms in the fastest-growing major economy.

Automakers such as Maruti Suzuki MRTI.NS, Hyundai 005380.KS, Honda 7267.T and Toyota 7203.T face demands for about $6 billion collectively in disputes on income-tax, customs and other payments that go back years, a Reuters analysis shows.

Although Prime Minister Narendra Modi has been courting foreign investors with promises to simplify regulations and uproot bureaucratic hurdles, lengthy tax investigations remain a sore point, often triggering lawsuits that stretch over years.

In one high-profile incident, telecoms company Vodafone won its case against a $2-billion retrospective Indian tax demand after more than a decade of legal battles with New Delhi, including international arbitration at the Hague.

Now, Volkswagen's move on January 29 to sue India for $1.4 billion in tax that the firm called "impossibly enormous" is making foreign companies jittery.

Tax advisers and lawyers say they are fielding nervous queries from clients about how years-old tax cases could come back to haunt them.

Calls are also growing for an amnesty scheme for cases running for years, as India set a three-year window on February 1 to conclude reviews of customs shipments, but the rule excludes old disputes running into billions of dollars.

"The government clearly recognised this now and redressed it, but it is unlikely old tax demand notices will be given any benefit," said Ameya Dadhich, a tax associate at global law firm DLA Piper.

"Such instances can deter foreign companies from investing heavily in India," he added. "An amnesty scheme will be helpful given that around 40,000 tariff disputes are pending."

India's finance ministry did not respond to queries from Reuters.

Modi wants to turn India into a manufacturing hub, but many electronic and auto companies rely on assembly operations using parts for high-end cars or smartphones imported from markets such as China and Europe, often spurring investigations.

Government data shows total pending arrears of service tax, customs and excise levies stood at nearly $53 billion in November 2024, with a whopping 70% disputed in litigation.

In the category of import tariff, or customs disputes alone, India had made tax demands of $4.5 billion by March 2024, with a third of those pending for more than five years.

One tax adviser and a lawyer for a foreign automaker in India said the Volkswagen news sparked a flurry of calls from companies to gather updates on scrutiny of their shipments, to ensure their imports are classified correctly for tax.

TAX BACKLOG

In a move seen as aimed at placating U.S. President Donald Trump, who once called India a "tariff king", New Delhi cut average tariffs on February 1 to 11% from 13%, though they still exceed those of China, Japan and the United States.

Imports of fully built luxury cars face Indian taxes and levies of about 100%, while the rate is 150% for Scotch whisky and wine.

In the highly competitive auto sector, Volkswagen VOWG_p.DE is not alone in facing tax scrutiny.

Maruti has $2.4 billion of tax demands in dispute, with at least one case concerning transactions from 1986. Volkswagen is locked in tussles over $1.2 billion, apart from the most recent demand, while Hyundai faces $488 million in such demands.

India's appeals tribunal for customs, excise and service tax faced a backlog of 80,000 cases, Sanjay Malhotra, then the revenue secretary, said in 2023. With about 20,000 new cases each year, he said, "We are not able to reduce the backlog."

In the case of Volkswagen, New Delhi accuses it of having imported most parts of 14 models in separate shipments before assembling them locally, paying tax ranging from 5% to 15%.

That strategy circumvented the tax of 30% to 35% payable if the same items were imported in a single shipment as a completely knocked down (CKD) unit.

In its court filing to be heard this month in the financial capital of Mumbai, Volkswagen is blaming Indian officials for their "inaction and tardiness" in taking years to review shipment records, some stretching back to 2012.

Had New Delhi wrapped up its reviews earlier, Volkswagen says, it could have challenged the move or re-evaluated its import strategy, but the tax notice now puts "at peril the very foundation of faith and trust" foreign investors desire.

Two government officials who spoke on condition of anonymity said the slowness of Indian bureaucracy and a lack of adequate documentation from Volkswagen both contributed to the delay.

"Long pendency like in Volkswagen's case has a detrimental effect on business," said Shashi Mathews, head of indirect tax practice at Indian law firm, IndusLaw.

"We are seeing an increase in queries from clients wanting to know the fate of their shipment reviews."

(Reporting by Aditi Shah, Nikunj Ohri and Aditya Kalra; Additional reporting by Arpan Chaturvedi; Editing by Clarence Fernandez)

((Email: [email protected]; X: @adityakalra;))

Feb 6 (Reuters) - Indian tyre maker MRF MRF.NS posted a near 40% fall in third-quarter profit on Thursday, as higher rubber costs outweighed steady demand for tyre, sending its shares more than 3% lower.

Standalone net profit was 3.07 billion rupees ($35.06 million) in the quarter ended Dec. 31, missing analysts' average estimate of 4.2 billion rupees, according to LSEG data.

Revenue from operations rose 13.8% to 68.83 billion rupees, beating analysts' average estimate of 67.33 billion rupees, while total expenses increased 20.6%.

MRF makes tyres for vehicles of Hyundai Motor India HYUN.NS and Bajaj Auto BAJA.NS, among others.

For further earnings highlights, click (Full Story)

KEY CONTEXT

Prices of rubber, a key raw material for tyre makers, rose in the December quarter, analysts said. Cost of materials consumed rose 23.8% to 46.34 billion rupees for MRF.

Total vehicle sales in India rose 3.1% year-on-year in the reported quarter, compared with a 19.5% jump in the year-earlier period. This weighed on tyre makers such as MRF, which depend on auto sales for a big chunk of their revenue.

Meanwhile, replacement demand, where customers change old or worn-out tyres with new ones, along with price hikes helped boost revenue, analysts said.

PEER COMPARISON

* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

OCTOBER-DECEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 87.5575 Indian rupees

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Subhranshu Sahu)

(([email protected]; +91 8921483410;))

By Nikunj Ohri, Aditya Kalra and Aditi Shah

NEW DELHI, Feb 5 (Reuters) - India has accused South Korea's Kia of evading taxes of $155 million by misclassifying component imports but the carmaker has denied wrongdoing, the latest fight by a foreign automaker with New Delhi over tariffs, according to a document and two sources.

Kia competes with Hyundai 005380.KS and Maruti Suzuki MRTI.NS in the world's third-largest auto market, where it has a share of 6% of roughly 4 million units a year, and its Kia Seltos and Sonet SUVs are among the top sellers.

Foreign companies in India face headaches from high taxes and long-drawn-out investigations.

For example, Tesla TSLA.O has publicly complained about high taxes on imported EVs and Volkswagen VOWG_p.DE last week sued over a demand for a record $1.4 billion in back taxes that it called "impossibly enormous".

Tax officers sent a confidential notice to Kia's Indian unit in April 2024, flagging alleged tax evasion of 13.5 billion rupees, according to a government notice Reuters is reporting for the first time.

The offence centred on incorrect declaration of imports of components for the assembly of the carmaker's luxury Carnival minivan, the notice showed.

In a statement to Reuters, Kia India said it made "a detailed response, supported by comprehensive evidence and documentation to substantiate" its stand and the authorities were still reviewing the matter.

Kia India is committed to complying with all regulations and has "consistently cooperated with" authorities, it added.

India's finance ministry and customs officials did not respond to Reuters queries.

In its 432-page notice, the government said tax authorities found Kia's Carnival "car model was being imported in parts or components in separate lots" via different ports, with the "intent to discharge lesser customs duty".

Kia devised the strategy to ensure the imports "could not (be) detected by customs," it added in the notice, issued by a customs commissioner in the southern city of Chennai.

Two sources said Kia's 000270.KS case was similar to that of Volkswagen, accused of evading a higher tax of 30% to 35% applicable on parts imported in "completely knocked down" or CKD form in a single shipment, instead shipping separate parts over days, making them eligible for a tax rate of just 10% to 15%.

During the investigation, Kia's website showed the Carnival model sold in India as being in "CKD" form, with retail sales of 9,887 units between 2020 and 2022, the tax notice said.

The Volkswagen investigation spanned 14 car models from the Skoda Kodiaq to the Audi A3 and the Volkswagen Tiguan.

In contrast, Kia's case concerns only the Carnival model, a seven-seater priced around $73,500, which is among its most expensive cars in India.

KIA COULD FACE $310 MLN PAYOUT

Indian tax rules could require Kia to pay up to $310 million if it loses the dispute, or roughly double the amount evaded, due to penalty and interest.

The latest available corporate filings in India show Kia's domestic annual sales of $4.45 billion in fiscal 2022/23 were its highest ever, up 53% on the year, for net profit of $243 million.

Last week, India slashed import duties on fully-built high-end motorcycles to 30%, in a move widely seen as looking to placate U.S. President Donald Trump, who has in the past called India a "tariff king".

But fully-assembled imported cars still attract a levy of more than 100%.

Kia has deposited 2.78 billion rupees ($32 million) "under protest" as it continues to fight the Indian tax notice, which is still proceeding, said a government source who declined to be named as the matter is private.

In 2022, authorities searched Kia offices and a factory in the southern state of Andhra Pradesh and took statements from India executives, some of whom the document identifies as Chief Procurement Officer Lee Sang Hwa, and Chief Finance Officer Kiho Yoo.

During the investigation, Kia executives "changed their stance and have made efforts to mislead," the tax notice stated, referring to statements on imports, manufacturing and taxation.

Kia was accused of importing more than 90% of the parts for Carnival, constituting a car in CKD form, which attracts higher tax, it added.

India's head of indirect taxes, Sanjay Kumar Agarwal, told Reuters the law was clear and some automakers were flouting it by not paying applicable CKD duties.

"If they are on the wrong side, then the department will have to issue a notice," he said in an interview on Tuesday.

(Reporting by Nikunj Ohri, Aditya Kalra and Aditi Shah; Additional reporting by Munsif Vengattil; Editing by Clarence Fernandez)

((Email: [email protected]; X: @adityakalra;))

Feb 1 (Reuters) - India's overall car sales to dealers saw a slight increase in January, data released by automakers on Saturday showed, as inflation-wary customers continued to delay purchases.

Domestic sales of India's top four carmakers - which form 80% of the country's car market - rose 1.8% from a year ago, helped by sales of market leader Maruti Suzuki's MRTI.NS small cars and Mahindra & Mahindra's MAHM.NS sports utility vehicles.

Peers Hyundai India HYUN.NS and Tata Motors TAMO.NS saw sales declining 5.5% and 10%, respectively, hurt by increased competition.

WHY IT'S IMPORTANT

Car sales in India, the world's third-largest car market, have slowed after two years of rapid growth as higher inflation has squeezed buyers' pockets.

Higher raw material costs have forced carmakers to raise prices even as they offer discounts to perk up demand.

The government's proposal to slash personal income tax rates in its annual budget on Saturday has raised hopes of a consumption boost in the world's fifth-largest economy, which could possibly entice more people to buy cars.

India's auto index .NIFTYAUTO rallied on the day, settling 1.9% higher.

BY THE NUMBERS

*Exports included

(Reporting by Nandan Mandayam in Bengaluru; Editing by Mrigank Dhaniwala)

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Jan 29 (Reuters) - Maruti Suzuki MRTI.NS, India's top carmaker by volumes, reported a smaller-than-expected third-quarter profit on Wednesday, hurt by higher discounts and a dip in small car sales.

The 'Alto' maker's standalone profit rose 12.6% year-on-year to 35.25 billion rupees ($407.34 million) for the quarter ended Dec. 31, but missed analysts' estimates of 36.62 billion rupees, per data compiled by LSEG.

($1 = 86.5375 Indian rupees)

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Sonia Cheema)

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Adds domestic demand outlook, export plans in paragraphs 1, 5, 9-10

By Nandan Mandayam

Jan 28 (Reuters) - Hyundai Motor India HYUN.NS reported a lower third-quarter profit on Tuesday, hurt by easing domestic sales and exports alongside higher discounts, and said it expects industry-wide car sales to remain tepid next fiscal year.

Hyundai is India's second-biggest carmaker and its 14% market share trails only Maruti Suzuki's MRTI.NS 40%. The Korean carmaker counts India among its top markets globally.

While its domestic sales dipped 0.1%, exports slid 7.5%, bringing down overall sales by 2.4%. That led to a 1.3% revenue dip, while profit declined about 19% to 11.61 billion rupees (about $134 million).

The 'Creta' sport utility vehicle (SUV) manufacturer is the first carmaker to report quarterly earnings in the world's third-largest auto market, where demand has tapered after surging in the last few years.

"Broadly, we believe low-single digit growth (of industry-wide domestic car sales) should continue in 2025-26 as well," Hyundai Motor India Chief Operating Officer Tarun Garg told reporters.

Car sales in India have stalled in this fiscal year, growing just 1.8% between April and December 2024, far slower than the 7.4% rise seen in the same period a year earlier.

They grew 4.5% in the October-December quarter, helped by India's demand-driving festival season and high discounts.

Hyundai's sales, however, dipped as heightened competition trimmed sales growth of its margin-boosting SUVs to 4%, from a 34.5% growth in the year-ago quarter.

Chief Executive Officer Unsoo Kim told reporters that Hyundai India was boosting exports to Africa to offset the impact of lower shipments to its key Middle East market.

Hyundai India sells a little over three-fourths of its cars in India, and exports the rest to the Middle East, South Africa, and parts of Latin America.

Rivals Maruti Suzuki and Tata Motors TAMO.NS will report their December quarter results on Wednesday.

($1 = 86.5330 Indian rupees)

(Reporting by Meenakshi Maidas and Nandan Mandayam in Bengaluru; Editing by Savio D'Souza and Mrigank Dhaniwala)

(([email protected]; +91 8921483410;))

repeats earlier story, no changes

By Aditi Shah

NEW DELHI, Jan 22 (Reuters) - Tata Motors, India's biggest electric car maker, is betting that locally manufactured EV batteries will help it maintain its edge in an industry where competition is intensifying with new launches, its group CFO said in an interview.

Tata's TAMO.NS EV market lead shrunk to 62% in 2024 from 73% a year ago as rival JSW MG Motor gained share with its new cars. This year, Mahindra & Mahindra, Hyundai Motor and market leader Maruti Suzuki will also launch EVs in India. Global EV giant Tesla TSLA.O has long eyed India too.

Tata Group's $1.5 billion initial investment to build a battery gigafactory in India and supply Tata Motors will allow it to further integrate its supply chain, P.B. Balaji, group CFO at Tata Motors, told Reuters.

"The work on the entire ecosystem is something that we have. We will be a dominant player in this market," Balaji said on the sidelines of India's car show last week where EVs from domestic players as well as China's BYD 002594.SZ and Vietnam's Vinfast 0TL.F took centre stage.

Tata, the owner of Britain's iconic Jaguar Land Rover, has EV models ranging from around $10,000 up to $27,000 and draws on other group companies that supply components and set up chargers to keep its investment and costs low.

When Agratas, the battery arm of the $165 billion Tata Group, begins production of lithium-ion battery cells in 2026, Tata Motors will have greater control over the most expensive part of an EV.

"Launching a car is a given but can you sustain it forever? We are backend secured," Balaji said, adding that production at the plant in western Gujarat will be at "full blast" in 2028.

New entrants Mahindra MAHM.NS, Maruti MRTI.NS and Hyundai 005380.KS, HYUN.NS do not have a similar integrated supply chain and will source batteries and other parts from suppliers in the market.

Tata Motors is also well funded to withstand a competitive market, Balaji said. It has received $1 billion in funding from U.S. private equity firm TPG and is a beneficiary of India's incentive program for EVs under which it hopes to get about $750 million over the next four years. The first tranche of $17 million has come in, Balaji said.

"There is enough and more money. The full TPG monies have come in, the business is well funded and as battery prices start coming off, most of it starts self-funding," he said.

EV sales in India made up just 2.5% of the 4.3 million cars sold in the country in 2024, but their 20% growth rate outpaced the 5% overall car market growth. Analysts expect EV sales to double in 2025 from 100,000 last year, mainly due to new launches.

Electric models made up about 12% of Tata Motors' 2024 car sales and it wants to grow this to 30% by 2030, it has said.

(Reporting by Aditi Shah, additional reporting by Nandan Mandayam;Editing by Elaine Hardcastle)

(([email protected]; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))

By Aditi Shah

NEW DELHI, Jan 22 (Reuters) - Tata Motors, India's biggest electric car maker, is betting that locally manufactured EV batteries will help it maintain its edge in an industry where competition is intensifying with new launches, its group CFO said in an interview.

Tata's TAMO.NS EV market lead shrunk to 62% in 2024 from 73% a year ago as rival JSW MG Motor gained share with its new cars. This year, Mahindra & Mahindra, Hyundai Motor and market leader Maruti Suzuki will also launch EVs in India. Global EV giant Tesla TSLA.O has long eyed India too.

Tata Group's $1.5 billion initial investment to build a battery gigafactory in India and supply Tata Motors will allow it to further integrate its supply chain, P.B. Balaji, group CFO at Tata Motors, told Reuters.

"The work on the entire ecosystem is something that we have. We will be a dominant player in this market," Balaji said on the sidelines of India's car show last week where EVs from domestic players as well as China's BYD 002594.SZ and Vietnam's Vinfast 0TL.F took centre stage.

Tata, the owner of Britain's iconic Jaguar Land Rover, has EV models ranging from around $10,000 up to $27,000 and draws on other group companies that supply components and set up chargers to keep its investment and costs low.

When Agratas, the battery arm of the $165 billion Tata Group, begins production of lithium-ion battery cells in 2026, Tata Motors will have greater control over the most expensive part of an EV.

"Launching a car is a given but can you sustain it forever? We are backend secured," Balaji said, adding that production at the plant in western Gujarat will be at "full blast" in 2028.

New entrants Mahindra MAHM.NS, Maruti MRTI.NS and Hyundai 005380.KS, HYUN.NS do not have a similar integrated supply chain and will source batteries and other parts from suppliers in the market.

Tata Motors is also well funded to withstand a competitive market, Balaji said. It has received $1 billion in funding from U.S. private equity firm TPG and is a beneficiary of India's incentive program for EVs under which it hopes to get about $750 million over the next four years. The first tranche of $17 million has come in, Balaji said.

"There is enough and more money. The full TPG monies have come in, the business is well funded and as battery prices start coming off, most of it starts self-funding," he said.

EV sales in India made up just 2.5% of the 4.3 million cars sold in the country in 2024, but their 20% growth rate outpaced the 5% overall car market growth. Analysts expect EV sales to double in 2025 from 100,000 last year, mainly due to new launches.

Electric models made up about 12% of Tata Motors' 2024 car sales and it wants to grow this to 30% by 2030, it has said.

(Reporting by Aditi Shah, additional reporting by Nandan Mandayam;Editing by Elaine Hardcastle)

(([email protected]; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))

Jan 21 (Reuters) - Hyundai Motor Co 005380.KS:

• HYUNDAI MOTOR INDIA - ACHIEVED UP TO 92% LOCALIZATION IN MANUFACTURING

Source text: ID:nNSERCZCq

Further company coverage: 005380.KS

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