HYUNDAI

Nov 14 (Reuters) - INDIA AUTO INDUSTRY BODY SIAM:

• INDIA'S OCT TOTAL DOMESTIC PASSENGER VEHICLE SALES 4,60,739 UNITS

• INDIA'S OCT 3-WHEELER SALES 81,288 UNITS

Further company coverage: ASOK.NS

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Rewrites throughout, adds chairman's comment in paragraphs 3,7

By Kashish Tandon and Meenakshi Maidas

Oct 31 (Reuters) - Maruti Suzuki MRTI.NS, India's top carmaker, expects small car sales to grow faster than SUVs, driven by recent tax cuts aimed at reviving sluggish domestic demand, its chairman said on Friday, after the firm missed quarterly profit estimates.

India simplified its goods and services tax (GST) structure on September 22, lowering the levy on small cars to 18% from 28%, while raising it on larger vehicles to 40%. The move is aimed at spurring demand in the price-sensitive segment that has been under pressure,

"The retail sales of vehicles in the 18% GST category are likely to grow faster than those in the 40% category," Chairman, R.C. Bhargava said, adding that about 70% of Maruti's production falls under the lower tax bracket.

Maruti, like most Indian automakers, has been grappling with weak domestic demand, mirroring an industry-wide slowdown that has led to single-digit profit growth for five straight quarters.

Domestic sales dropped 4.8% in the first half of the fiscal that began in April, including an 11.5% dip in the September quarter and small car sales falling 4.3%.

Exports, however, surged 42.2% to 110,487 units.

"Export business is going to be a major part of our operations and is contributing significantly to profitability," Bhargava said, adding that Maruti, India's largest exporter of cars, expects to export over 400,000 vehicles this fiscal year, 20.3% higher than last year.

Maruti's second-quarter profit rose 7.3% to 32.9 billion rupees ($374.3 million), missing analysts' estimate of 35.93 billion rupees, per data compiled by LSEG.

Its operating margin contracted to 8.5% from 10.3% a year earlier, hit by higher commodity and marketing costs.

Shares fell as much as 1.6% on Friday, but are up 49% so far this year, hitting record highs in August after the tax cuts were first announced.

Maruti, majority-owned by Japan's Suzuki Motor 7269.T, has been expanding its SUV portfolio to fend off competition from Hyundai HYUN.NS and Tata Motors TAMO.NS.

On Thursday, Hyundai Motor India said it was on track to exceed its export target for fiscal 2026 and was seeing improved demand following the tax reforms.

($1 = 87.8950 Indian rupees)

(Reporting by Chandini Monnappa, Kashish Tandon and Meenakshi Maidas in Bengaluru; Editing by Mrigank Dhaniwala and Sonia Cheema)

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BENGALURU, Oct 14 (Reuters) - LG Electronics India LGEL.NS made a stellar stock market debut on Tuesday, listing at a premium of 50% to its issue price of 1,140 rupees per share.

This is the best listing for a billion-dollar Indian initial public offering since Eternal ETEA.NS, the parent company of food delivery and restaurant-listing platform Zomato, debuted in 2021.

Here's a look at how India's other billion-dollar IPOs have done this decade:

SBI CARDS AND PAYMENT SERVICES (MARCH 2020)

The credit card arm SBIC.NS of India's largest lender, State Bank of India SBI.NS, slid about 13% in market debut, as the COVID-19 pandemic worries dampened enthusiasm for one of the country's largest public listings.

ETERNAL, FORMERLY KNOWN AS ZOMATO (JULY 2021)

The food and grocery delivery platform listed at a premium of 51.3% to its issue price, giving the startup a valuation of about $13 billion and setting the stage for other domestic startups waiting in the wings with listing plans of their own.

ONE97 COMMUNICATIONS (NOVEMBER 2021)

The parent of digital payments start-up, Paytm PAYT.NS, made one of the worst major Indian stock market debuts as its shares listed at a 9% discount and closed the first day 27% below its offer price due to concerns over profitability and lofty enterprise value.

LIFE INSURANCE CORPORATION OF INDIA (MAY 2022)

Shares of India's biggest insurer LIFI.NS slid nearly 9% in market debut amid broader market volatility and concerns over its market share loss to rivals.

HYUNDAI MOTOR INDIA (OCTOBER 2024)

The automaker's shares HYUN.NS fell 1.5% on listing after retail investors gave a lukewarm reception to the country's biggest-ever IPO amid concerns about a lofty valuation and an auto industry slowdown.

SWIGGY (NOVEMBER 2024)

The SoftBank-backed food and grocery delivery platform SWIG.NS listed at a 5.6% premium and extended gains through the day, signaling growing investor confidence in the segment.

NTPC GREEN ENERGY (NOVEMBER 2024)

The renewable energy firm's shares NTPG.NS jumped as much as 14% on their debut, as investors bet on the country's growing clean energy needs and the company's diversified portfolio.

HDB FINANCIAL SERVICES (JULY 2025)

Non-banking financial lending arm HDBF.NS of the country's largest private lender HDFC Bank HDBK.NS jumped about 13% on listing, notching a valuation of $8.2 billion, as investors bet on long-term growth prospects in the world's most populous country.

TATA CAPITAL (OCTOBER 2025)

India's third-largest non-bank lender TATC.NS made a muted debut, listing slightly higher than its issue price at a $15.78 billion valuation, with investors seemingly not that keen on the Tata Group's first IPO in two years due to a crowded IPO market and lack of valuation discount to listed peers.

(Reporting by Vivek Kumar M; Editing by Rashmi Aich)

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The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Refiles to add topic codes.

By Ujjaini Dutta

BENGALURU, Oct 9 (Reuters Breakingviews) - Rich valuations are a defining feature of Indian equities. So, it’s eye-catching when a global company listing its subsidiary in the South Asian market shuns the lofty multiples on offer. That’s the decision South Korea’s LG Electronics 066570.KS took this week.

Few global brands are as embedded in Indian homes as the maker of refrigerators, microwaves, televisions and air conditioners. It is the country’s biggest white-goods retailer by sales and LG Electronics India LGEL.NS is more profitable than its rivals. Instead of leveraging that advantage, the South Korean group is accepting a steep valuation discount on the $1.3 billion offering of its shares in the unit.

The $9 billion market capitalisation it's set to secure almost matches its parent’s but values the subsidiary at about 35 times its trailing earnings. That is close to the multiple of distant rival Whirlpool India WHIR.NS, which is half as profitable, and compares to 65 times Havells India HVEL.NS and 57 times for Voltas. It's so cheap that the offer was fully subscribed on the first day of bidding; BlackRock and the sovereign funds of Abu Dhabi, Singapore and Norway led the charge.

True, competition in India is heating up. Over the last three years, LG Electronics India's market share has slipped just about two percentage points in its leading product segments as global brands from Haier to Samsung Electronics 005930.KS muscle in. Yet LG is growing in the emerging market in other ways. It’s opening a third factory, plans to export Made-in-India goods to Europe, and generates oodles of cash to fund those ambitions. New Delhi’s effort to sign more free trade agreements also will support its goals.

The South Korean group may have wanted to secure a strong secondary market performance but Hyundai Motor India HYUN.NS did that without short-changing existing owners: the stock is up nearly 30% on the offer price since its October debut. Investors in LG Electronics may ultimately feel the company gave away too much value.

Follow Ujjaini Dutta on LinkedIn and X.

CONTEXT NEWS

LG Electronics' initial public offering of its Indian business was fully subscribed on the first day of bidding on October 7.

The offering, comprised entirely of existing shares, is worth up to 116 billion rupees ($1.3 billion). At the upper end of the price band, the company will have an IPO market capitalisation of $8.73 billion.

(Editing by Una Galani; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))

Adds details paragraph 2 onwards

Oct 7 (Reuters) - Indian dealers' auto sales grew 5.2% year-on-year in September, with upbeat growth across two-wheelers and passenger vehicles, as tax cuts boosted demand during the festive season, the Federation of Automobile Dealers Associations said on Tuesday.

While sales were muted in the first three weeks of September, they surged after September 22, when the revised goods and services tax rates took effect, the auto dealers association said.

Two-wheeler sales climbed 6.5% from a year earlier, while passenger vehicle sales grew 5.8%.

Dealers posted record high sales during the nine-day Navratri festival, the association said, with a 34% year-on-year jump during the period, as a wave of new customers entered showrooms and existing ones upgraded their vehicles, taking advantage of lower taxes and festive schemes.

The auto dealers body expects an above-normal monsoon, strong harvest, and steady lending rates to boost purchasing power of consumers, driving demand.

It also expects "peak sales" during the Diwali festival in October, when Indians typically tend to make high-value purchases.

(Reporting by Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala and Ronojoy Mazumdar)

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Rewrites throughout, adds details for more automakers

By Yagnoseni Das

Oct 1 (Reuters) - Three out of four of India's top carmakers posted a year-on-year rise in dispatches to dealers in September, snapping a four-month streak of falling sales, as higher footfalls during the festive season and consumption tax cuts fueled a demand rebound.

New Delhi slashed the goods and services tax on sports utility vehicles (SUVs) with engine capacities above 1,500 cc to 40% from an effective rate of 50% as part of its effort to boost consumption and support growth amid headwinds from trade tensions with the United States.

Tax on small petrol and diesel cars also went down to 18% from 28%.

Tata Motors TAMO.NS posted a 47% jump in sales to dealers, and Hyundai Motor India HYUN.NS reported a 10% rise, its first since November 2024.

Both companies attributed the surge to a rise in SUV sales, with Tata adding that its compact SUV Nexon recorded the highest-ever monthly sales for any model in the company’s history.

Mahindra & Mahindra MAHM.NS, which has a line-up comprised entirely of SUVs, also reported a 10% rise in sales after posting its first decline in August in over three years. Sales grew 60% after September 22, when the tax cuts came into effect.

However, market leader Maruti Suzuki reported a more than 8% decline, dragged by lower SUV sales for a fourth straight month, even as sales of small cars rose 4.6%.

Vehicles dispatched on September 22, the first day of the local festival Navratri, were still in transit due to logistics delays, compressing deliveries into a short window and limiting retail sales for the month, its sales and marketing head Partho Banerjee said in a call on Wednesday.

Maruti Suzuki, Mahindra & Mahindra, Hyundai Motor India and Tata Motors are India's four largest carmakers, and account for about 80% of sales.

(Reporting by Yagnoseni Das in Bengaluru; Editing by Janane Venkatraman)

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** Hyundai Motor India HYUN.NS gains 4.2% to 2,838 rupees

** Nomura keeps "buy" rating, 2,846 rupees PT on strong model cycle, rising SUV mix benefits

** Notes GST cuts to help segments including compact SUVs to gain market share

** Export margins for HYUN also higher than domestic margins and thus a rising exports mix will support margins - Nomura

** Brokerage expects HYUN's EPS CAGR of 27% over FY26-28

** Avg rating by 23 analysts on HYUN at "buy"; median PT is 2,430 rupees - data compiled by LSEG

** Stock extends YTD gains to 57%

(Reporting by Kashish Tandon in Bengaluru)

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The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Ujjaini Dutta

BENGALURU, Sept 11 (Reuters Breakingviews) - Prime Minister Narendra Modi’s administration is undermining its own electric-vehicle policy - again. The goal, set in 2017, is for battery-powered rides to make up 30% of new vehicle sales by 2030, from the current 7.6%. That was already looking tough. New Delhi’s decision last week to slash goods and sales taxes on petrol, diesel and hybrid rides makes it even more difficult.

There are logical reasons for reducing the GST – to 18% from 28% for small cars and to 40% from effectively up to 50% for larger models like SUVs. Perhaps chief among them is that crawling real income growth has left the world’s third-largest market for new vehicles sputtering, with passenger vehicles expanding just 2% overall in the 12 months to the end of March, according to the Society of Indian Automobile Manufacturers, compared with 8.4% in the year ended March 2024 and 26.7% in March 2023.

The prospect of the changes kickstarting sales has boosted carmakers. Shares in India's leading small-car maker Maruti Suzuki MRTI.NS have soared nearly 17% since Modi first mentioned impending tax cuts last month, while those of Hyundai Motor India HYUN.NS jumped over 11%. Last week’s inclusion of large cars in the tax break had Mahindra & Mahindra’s MAHM.NS stock quickly catch up, too.

On the face of it, the GST reductions might not seem to matter for EVs, whose levy remains unchanged at the lowest 5% rate. And the battery-powered models currently available in the market target less price-sensitive customers, an analyst at HDFC Securities told Breakingviews.

But a sudden reduction in sticker prices for fossil fuel-powered cars across the board has several negative effects for EVs. It makes it even harder for them to break into the cheaper end of the market: India’s entry-level electric cars cost nearly double Maruti Suzuki’s popular small-car models, for instance.

Meanwhile, lower sticker prices for higher-end models could sway those wavering between an EV and a petrol-powered SUV. The more buyers plump for internal combustion engines and hybrids, the more delays there could be in reducing the Indian EV market’s headwinds, from limited models to choose from to patchy charging infrastructure.

That adds to speed bumps New Delhi and regional governments have already put in the way, like offering subsidies or removing registration fees for hybrid vehicles. Cheaper gas guzzlers makes Modi’s 2030 target look even more remote.

Follow Ujjaini Dutta on Linkedin and X.

CONTEXT NEWS

Indian Finance Minister Nirmala Sitharaman on September 3 announced goods and services tax cuts on consumer items, including small cars, simplifying the system to a two-rate structure of 5% and 18%, instead of four rates currently.

GST on small cars is reduced to 18% from 28%. Mid-size and large cars are now taxed at 40%, down from as much as 50%. Electric vehicles are still taxed at 5%. The new rates will be effective September 22.

(Editing by Antony Currie; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))

Sept 1 (Reuters) - India's Mahindra & Mahindra MAHM.NS reported its first sales decline over three years in August as the Scorpio SUV maker said it moderated dispatches to dealers as it awaits a government decision on lower consumption tax.

Its SUV sales fell 9% last month, but are still up 15% so far in the fiscal year to March 2026.

Analysts at Nomura said automotive dealers stocked up conservatively for August ahead of the key tax cut decision, so as not to hold on to higher-cost inventory. Buyers are delaying festive season purchases as they expect lower prices.

India's goods and services tax (GST) council is due to meet later this week to discuss the most significant overhaul of the tax system since its launch, after Prime Minister Narendra Modi announced the proposal last month.

Despite the drop in August, Mahindra has defied a wider industry slowdown in the world's third-largest car market, backed by strong demand for its newer SUVs and EVs.

Market leader Maruti Suzuki MRTI.NS and rivals Hyundai India HYUN.NS and Tata Motors TAMO.NS are yet to report their monthly sales numbers.

(Reporting by Urvi Dugar, additional reporting by Mridula Kumar; Editing by Sonia Cheema)

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By Aditi Shah

NEW DELHI, Aug 31 (Reuters) - India's roll-out of fuel blended with 20% ethanol will hurt a vehicle's mileage by 2%-4% but is safe to use, a lobby group representing the country's automakers said, aiming to assuage motorists' concerns in the world's third-largest car market.

India set a 2025 target years ago for 20% ethanol blending in fuel, called E20, as part of Prime Minister Narendra Modi's focus on clean energy. But in recent weeks it has become the only choice at nearly all fuel stations, causing furore among drivers over its impact on vehicle performance and durability, especially older vehicles.

Using E20 fuel in older vehicles lowers mileage but is not a safety risk, P.K. Banerjee, executive director at the Society of Indian Automobile Manufacturers (SIAM), told reporters late on Saturday at a news event in New Delhi.

"Millions of vehicles are plying on E20 for quite some time now. Not a single vehicle breakdown or engine failure has been reported," said Banerjee, adding that if issues arise, warranty and insurance claims will be fully honoured by companies.

SIAM represents India's major carmakers including Maruti Suzuki MRTI.NS, Hyundai Motor HYUN.NS, Mahindra & Mahindra MAHM.NS, Tata Motors TAMO.NS and Toyota Motor 7203.T.

More than a dozen executives from auto companies, fuel retailers and industry groups were present on stage, addressing questions from the media at the event on India's ethanol-blended petrol programme.

Banerjee said claims of a 50% drop in fuel efficiency are unfounded and misinformed. Scientific studies conducted in a controlled environment show a 2%-4% decrease, putting a number to the reduction for the first time, he said.

However, driving in real world conditions can contribute to higher drops in mileage due to a variety of factors.

"On road it could be very different because of the way in which the vehicles are maintained and driven so that difference will be there," said C.V. Raman, executive committee member at Maruti Suzuki, India's biggest carmaker.

While India has been gradually rolling out E20 fuel since 2023, older blends, like E5 and E10, typically seen as more compatible with older vehicles, were also offered.

However, these older fuel mixes have now been removed from nearly all of the country's 90,000 fuel stations, leaving drivers with just one choice - a decision that is unlikely to change.

In recent weeks, worried motorists took to social media over concerns about large fuel efficiency drops and confusing statements from carmakers. Carmakers first said E20 fuel had not been tested for compatibility with older vehicles, but backtracked later saying it is safe to use.

Automakers, already battling slower sales and shortages of rare-earth magnets, have provided mixed guidance, adding to consumer anger over the lack of choice. Public interest litigation against the move will be heard in the Supreme Court on Monday.

(Reporting by Aditi Shah; Editing by Michael Perry)

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Aug 18 (Reuters) - Indian auto stocks jumped 4% to their highest level in 10 months on Monday, after Reuters reported that the government has proposed lowering the goods and services tax on small cars as part of sweeping consumption tax cuts.

Auto shares were the top sectoral gainers on the benchmark Nifty 50 .NSEI, which rose 1.3%.

The government has proposed lowering the goods and services tax on small petrol and diesel cars to 18% from 28%, Reuters reported citing a government source.

India's finance ministry did not reply to an e-mail seeking comment.

All 15 stocks on the auto index rose. Motorcycle maker Hero MotoCorp HROM.NS jumped 7%, followed by top carmaker Maruti Suzuki's MRTI.NS 6.6% rise.

(Reporting by Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala)

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Recasts paragraph 1, adds details from earnings call

By Meenakshi Maidas

Aug 4 (Reuters) - Indian e-scooter maker Ather Energy ATHR.NS reported a narrower first-quarter loss on Monday on higher demand, and said it expects a week of "potential business impact" only in the second quarter due to China's rare-earth magnet export ban.

Ather expects around a week's worth of a supply gap to dealers due to China's ban but aims to manage the impact with existing inventory, CEO Tarun Mehta said in post-earnings call.

The company is also exploring alternatives, including a shift to more widely available light rare earth magnets, which remain unrestricted, he added.

China, which supplies around 90% of the world's rare earth magnets, imposed the export ban in April.

Last week major Indian carmakers Mahindra MAHM.NS, Hyundai India HYUN.NS shrugged off medium-term issues from the export ban, with Mahindra saying it was using alternatives such as light rare-earths and ferrites.

Ather Energy, which makes the popular "Rizta" e-scooter, said its losses narrowed to 1.78 billion rupees ($20.3 million) in the quarter ended June 30 from 1.83 billion rupees a year ago, helped by sales that grew nearly two-fold to 46,078 units.

Backed by Hero MotoCorp HROM.NS, Ather entered India's electric vehicle market in 2018 as an early mover, but has since lost ground to rivals such as Ola Electric OLAE.NS and legacy players with stronger finances and a broader reach.

Its revenue surged 78.8% on-year to 6.45 billion rupees, but rising material costs pushed overall expenses 54.4% higher.

Its adjusted gross margin rose to 23% from 19% a year ago, driven by non-vehicle revenue such as warranty programs, software and accessories such as its "Halo" helmets.

Ather's shares rose as much as 19.4% to a record high of 414.65 rupees on Monday after its quarterly results and closed 14% higher.

($1 = 87.6320 Indian rupees)

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Nivedita Bhattacharjee, Mrigank Dhaniwala and Sonia Cheema)

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Corrects typographical error in headline

Aug 1 (Reuters) - Indian automaker Mahindra & Mahindra MAHM.NS said on Friday its sales of sports utility vehicles to dealers rose 20% year-on-year in July, supported by new launches and deliveries of electric SUVs.

Mahindra has been beating its peers in terms of sales growth, helped by successful launches that have drawn customers from rivals such as Hyundai India HYUN.NS and Tata Motors TAMO.NS.

Market leader Maruti Suzuki MRTI.NS and rivals Hyundai India and Tata Motors are yet to report their sales numbers.

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Mrigank Dhaniwala)

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

** Hyundai Motor India HYUN.NS reported a quarterly profit beat, as a rise in exports helped cushion a drop in overall sales

** Shares edge higher by 0.2% to 2,090.4 rupees compared to a 0.7% decline in benchmark Nifty 50 .NSEI index

NEW LAUNCHES TO DRIVE GROWTH

** Nomura ("buy," PT: 2,417 rupees) says while fiscal year 2026 will likely register slower growth, a strong pick-up in volumes is expected from FY27 onwards as new model cycle kicks in and capacity expands

** AMSEC ("buy," PT: 2,500 rupees) says co's new facility ramp-up and a slew of new launches are expected to back strong growth visibility

** Ambit Institutional Equities ("buy," PT: 2,168 rupees) says earnings will be muted over next six months, however, new launches and a focus on exports will boost volumes recovery from FY27 onwards

** Emkay Global (“add,” PT: 2,200 rupees) says a gradual uptick from the upcoming festive season in India will likely aid recovery for co; adds that historically new model launches have been a key growth driver for the passenger vehicles industry

(Reporting by Manvi Pant in Bengaluru)

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Corrects media packaging code

July 30 (Reuters) - Hyundai Motor India HYUN.NS beat quarterly profit estimates on Wednesday as higher exports and a better proceeds from SUV sales offset the impact of a weak domestic market.

The unit of South Korea's Hyundai Motor 005380.KS reported a profit of 13.69 billion rupees ($156.7 million) in the three months to June 30, compared with 14.9 billion rupees a year ago.

Analysts, on average, had expected the car manufacturer to report a profit of 12.59 billion rupees, according to data compiled by LSEG.

($1 = 87.3720 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru; Editing by Nivedita Bhattacharjee)

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July 22 (Reuters) - Hyundai Motor Co 005380.KS:

• RECEIVES ORDER FOR TAX DEMAND OF 2.59 BILLION RUPEES, PENALTY 2.59 BILLION RUPEES

• NO IMPACT ON FINANCIAL, OPERATION DUE TO TAX ORDER

Source text: ID:nBSE8stmJ6

Further company coverage: 005380.KS

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July 15 (Reuters) - Indian automakers' car sales to dealers slid to an 18-month low in June, data from an industry body showed on Tuesday, amid weak demand in urban areas.

Car makers delivered 312,849 units to dealers last month, the Society of Indian Automobile Manufacturers said in a statement, down from 337,757 units a year before.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Subhranshu Sahu)

(([email protected]; Mobile: +91 9591011727;))

** Hyundai Motor India HYUN.NS climbs 1.4% to 2,124.40 rupees

** Nuvama starts coverage on carmaker with "buy" and PT of 2,600 rupees

** Brokerage's PT highest among 22 analysts tracking HYUN, as per data compiled by LSEG

** HYUN's new compact SUVs and micro-electric SUVs over the next 18 months will drive its market share higher by ~1% point to 15% by FY28

** Adds that deeper penetration in HYUN's EV platform and launches shall drive robust exports revenue with annual growth rate of 11% over FY25-28

** Avg rating on HYUN, rival Maruti Suzuki MRTI.NS at "buy," while Tata Motors TAMO.NS rated "hold" - data compiled by LSEG

** YTD, HYUN gains 17% vs MRTI's 16% climb and TAMO's 7% decline

(Reporting by Kashish Tandon in Bengaluru)

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July 7 (Reuters) -

• INDIA AUTODEALERS BODY FADA: CAUTIOUSLY OPTIMISTIC VIEW FOR NEAR TERM

• INDIA'S FADA: RARE-EARTH SHORTAGES, GEOPOLITICAL TENSIONS & US-TARIFF SPILL-OVERS DEMAND VIGILANCE

• INDIA'S FADA: CHALLENGES IN SECURING RARE-EARTH MATERIALS STALLED COMPONENT PRODUCTION

• INDIA'S FADA: IN NEAR TERM, ABOVE-NORMAL MONSOON RAINS SHOULD BOLSTER RURAL DEMAND

• INDIA AUTODEALERS BODY FADA: JUNE PASSENGER VEHICLE RETAIL SALES ROSE 4.84 % Y/Y

• INDIA AUTODEALERS BODY FADA: JUNE TWO-WHEELERS RETAIL SALES UP 4.73% Y/Y

• INDIA AUTODEALERS BODY FADA: JUNE COMMERICAL VEHICLE RETAIL SALES ROSE 6.60% Y/Y

• INDIA'S FADA: AS WE ENTER JULY 2025, DEALER SENTIMENT APPEARS TILTED TOWARDS SLOWDOWN

(([email protected];;))

** Hyundai Motor India HYUN.NS closes 5.22% lower at 2,123.7 rupees

** Stock snaps a six-session rising streak, clocks worst day in more than four months

** Co records a 12% y/y decline in domestic sales in Q1 FY 2026, as buyers in urban India hold back on car purchases

** YTD, Hyundai up 16.7%

(Reporting by Ananta Agarwal in Bengaluru)

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June 30 (Reuters) - Three of India's top carmakers together reported lower domestic sales for June, data from the companies showed on Tuesday, as buyers in urban India kept away from new vehicle purchases.

Market leader Maruti Suzuki MRTI.NS, Tata Motors TAMO.NS and Hyundai India HYUN.NS registered decline in sales of 13%, 15% and 12%, respectively.

The three automakers corner over 60% of India's car market, the third-largest in the world, where sales growth has lately stuttered after hitting record-highs for three successive years.

Maruti's sales for June dropped to their lowest since December 2023. The 'Swift' hatchback manufacturer took a hit in small cars – its largest segment – that have become costlier due to stricter safety and emission rules.

"The once mass small-car segment is not participating in the growth at all," said Rahul Bharti, Maruti's senior executive officer of corporate affairs.

Sales of the company's utility vehicles, mostly sport utility vehicles (SUVs), dropped 8.5% in June, to their lowest level since December 2023.

Meanwhile, Tata Motors' dispatches slid 15% to their lowest level since December 2021, while Hyundai logged a 12% decline in domestic sales.

Hyundai's Chief Operating Officer Tarun Garg said in a release that the company is "cautiously optimistic about a gradual recovery of demand."

Tata, too, said it is counting on its newly launched vehicles to support the carmaker in a year where "overall industry growth is expected to remain subdued."

Indeed, industry insiders have said they expect overall car sales to grow about 1%-2% in the year to March 2026, compared to last year's 2% growth.

Mahindra, an exception to the trend, said its SUV sales grew 18% in June to end the quarter with record-high dispatches to dealers. The blistering growth has powered Mahindra to the no. 2 spot in India's car market, a position held by Hyundai for the large part of two decades.

BY THE NUMBERS

(Reporting by Nandan Mandayam in Bengaluru; Editing by Shailesh Kuber)

(([email protected]; Mobile: +91 9591011727;))

** 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

(([email protected];;))

** 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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This is a repeat of an item issued on Thursday

By Aditi Shah, Neha Arora and Aditya Kalra

NEW DELHI, June 5 (Reuters) - India is holding talks with companies to establish long-term stockpiles of rare earth magnets by offering fiscal incentives for domestic production, people familiar with the matter said.

Building such a supply chain could take years, but would reduce India's dependence on shipments from China, which sent shockwaves across global industries, particularly autos, with its April 4 move to curb exports of rare earth materials.

China controls 90% of the processing of such magnets, also used in industries such as clean energy and defence.

Now Prime Minister Narendra Modi's government wants to develop domestic manufacturing capabilities and is considering offering production-based fiscal incentives to companies, said two sources who sought anonymity as the talks are private.

The scheme, being drafted by the ministry of heavy industries, also envisions partly funding the difference between the final price of the made-in-India magnet and the cost of the Chinese imports, the first source said.

This would help achieve cost parity and boost local demand, the source said, adding that funding for the scheme has yet to be decided, with the government likely to meet industry officials next week to finalise the details.

The heavy industries ministry did not respond to Reuters' queries.

Although a state-run firm, IREL, has been mining rare earth materials for years, these are mainly used by the atomic energy and defence units, with most supplies for other uses still imported from China.

India's move comes as auto companies the world over flag risks that they could face supply disruptions within days.

In Japan, Suzuki Motor 7269.T, has suspended production of its Swift car because of China's curbs.

In India, auto industry body SIAM has privately told the government it expects production "to come to a grinding halt" within a timeframe starting from the end of May or early June.

The heavy industries ministry also plans to send a delegation of auto industry executives to meet officials in Beijing to push for faster approvals, with two industry officials warning that was the only near-term solution.

"The short-term solution has to be to get Chinese authorities to clear things," said one of the executives, who fears shortages at his company. "A radical shift in supply chain is not possible in the short term."

Some auto companies and their suppliers will be able to stretch operations until the end of June, after which the situation will turn "really scary", said the second executive, adding it would affect not just electric cars but all vehicles.

India has the world's third-largest reserves of rare earths of 6.9 million tons, the U.S. Geological Survey says, but only mines a fraction because private companies make limited investments.

A government campaign launched in April, the National Critical Mineral Mission, aims to attain self-reliance in the sector. In recent years, it has begun exploration for neodymium, a rare earth widely used in magnets for the auto industry.

India also exports neodymium to Japan for lack of domestic processing capability, two of the sources said.

Commercially available export data showed India exported nearly $7 million worth of the rare earth material to Toyota Tsusho 8015.T between January and April.

This week, Modi's office discussed the impact of the magnet crisis on the small but fast-growing EV sector, to which investors have committed billions of dollars, a person familiar with the talks said.

It also weighed the possibility of tariff exemptions for imports of machines required by domestic manufacturers, the source said, adding, "The government is looking into it critically. They are serious."

(Reporting by Aditi Shah; Editing by Clarence Fernandez)

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Repeats item first published on Tuesday with no changes to text

By Aditya Kalra

NEW DELHI, June 3 (Reuters) - Two former Kia India workers are under investigation over accusations that they colluded with scrap dealers to steal 1,008 engines from the carmaker's factory over three years, police investigation documents showed.

Though the engines were worth only $2.3 million, the police investigation noted the case had "widespread impact on industrial operations, stakeholder trust and employment security", and raised concerns about inter-state crime networks.

Kia 000270.KS in March complained to police in the southern state of Andhra Pradesh that a review of internal records found engines sourced from its sister carmaker, Hyundai 005380.KS, were missing and it suspected a conspiracy between past and present employees.

An initial police investigation found two former Kia India factory workers - a team leader and a head of section in the engine dispatch section - were involved in illegally transporting the engines from the factory using forged invoices and manipulated gate passes, according to an April 16 police document.

They worked with at least two other individuals who helped arrange transport, and two other scrap dealers who helped sell them to buyers as far away as the capital city New Delhi.

"The entire operation involved repeated illegal transactions, use of multiple trucks bearing manipulated or pseudo registration numbers," Inspector K. Raghavan said in his investigation document dated April 16, seen by Reuters.

Raghavan declined to comment when contacted, citing confidentiality.

In a statement to Reuters, Kia India said it identified the discrepancies as it enhanced its inventory management processes last year. Kia India conducted an internal investigation, reported the case to police and was continuing to strengthen internal process governance and reinforce stringent monitoring systems, it added.

'DISAPPEARANCE' OF ENGINES

The former head of the engine dispatch section at Kia's factory, Vinayagamoorthy Veluchamy, 37, is currently under arrest in custody, and has applied to the state High Court for bail, according to court papers seen by Reuters. He denied any involvement in the alleged thefts, the papers showed. He left the company in 2023.

The other Kia worker accused is 33-year-old former team leader Patan Saleem, who worked at the factory from 2020 to 2025, police documents showed. His whereabouts were not known and two phone numbers cited in the police document were not in service.

The two former employees are yet to be formally charged with any offence, but have been named as accused in the investigation, which is still in initial stages.

Given the "high-level preplanning, internal access manipulation", they could face punishment of 10 years imprisonment or more under Indian laws if charged and convicted, the police document said.

While theft is relatively common in India, such large-scale, prolonged corporate-level cases such as the one involving Kia are rare.

Kia first reported the matter of the "disappearance" of engines to police after stock reconciliation in January 2025, a month after it also found unauthorized vehicle movement in the factory's CCTV footage. Its March complaint put the missing engines number at 940, documents show.

Police recovered nine mobile phones containing WhatsApp screenshots, transport invoices and truck photos.

"The proceeds of crime were either spent on personal needs, clearing debts, purchasing immovable property or reinvested in businesses," said the police document.

(Reporting by Aditya Kalra; Additional reporting by Rishika Sadam; Editing by Alex Richardson)

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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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