HYUNDAI

Feb 13 (Reuters) -

• INDIA AUTO INDUSTRY BODY SIAM - INDIA'S JAN TOTAL DOMESTIC PASSENGER VEHICLE SALES 4,49,616 UNITS

• SIAM - INDIA'S JAN 2-WHEELER SALES 19,25,603 UNITS

• SIAM - INDIA'S JAN 3-WHEELER SALES 75,725 UNITS

• SIAM: NEW BUDGET INITIATIVES, POLICY TAILWINDS EXPECTED TO DELIVER LONG-TERM BENEFITS, SUPPORT GROWTH IN MEDIUM TERM

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

By Shritama Bose

MUMBAI, Feb 10 (Reuters Breakingviews) - A record run of listings is doing little to shore up investment banking fortunes in India. Citi and JPMorgan passed up working on a $1.4 billion float last month by SBI Funds Management, India's largest asset manager, after the issuer set fees at 0.01% of the issue size, Bloomberg reported citing sources. Such state-backed issuers are usually stingy but the hottest private issuers in 2026 are likely to offer slim pickings too.

Fees are growing but remain well short of desirable levels. Net revenue from India's $23 billion of initial public offerings amounted to 1.7% of proceeds in 2025, up from 1.4% a year earlier, Dealogic data show. Underwriters in the U.S. typically command between 4% and 7%.

And while India is now delivering a consistent pipeline of sizeable deals, extracting the measly fees on offer is painful. ICICI Prudential Asset Management's IICL.NS $1.4 billion offering in December was shepherded by 18 banks.

Fees also are increasingly split into equal fixed and variable components tied to the quality of investors a bank brings to a transaction. Roughly one-fifth of the total payout is reserved as a discretionary bonus issuers can choose to hold back. In practice, robust demand for Indian stock means these incentives and bonuses are mostly paid but they suck up time to negotiate.

Firms working on prospective blockbuster deals - such as Reliance Industries' RELI.NS planned offering of Jio Platforms, handled by Morgan Stanley and Kotak Mahindra Bank, per a Reuters report, and National Stock Exchange - won't be spoilt for riches either.

Choosing deals well can be rewarding. Foreigners remain among the few willing to pay for advice. IT exporter Hexaware Technologies HEXW.NS, acquired by global private equity firm Carlyle CG.O in 2021, paid 2.5% to Kotak and Citi for its $1 billion listing, for example. Mandates on the Indian listings of multinationals' local subsidiaries, such as Hyundai Motor India HYUN.NS and LG Electronics India LGEL.NS, have been lucrative too.

Those fees, though, are unlikely to push much higher if the rest of the market is stingy.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Citi and JPMorgan pulled out of a planned $1.4 billion initial public offering by SBI Funds Management over low fees, Bloomberg reported on January 7, citing unnamed people familiar with the matter. SBI Funds later replaced Citi with Jefferies, the report added. Sellers State Bank of India and France’s Amundi offered fees of about 0.01% of the issue size after some domestic advisers quoted only a token fee for the mandate, the report said.

(Additional reporting by Aditya Srivastav; Editing by Una Galani; Production by Aditya Srivastav)

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

Repeats February 6 story. No change to text.

By Aditi Shah

NEW DELHI, Feb 9 (Reuters) - India has scrapped a planned concession for small cars in upcoming fuel-efficiency rules after automakers including Tata Motors and Mahindra & Mahindra argued it would benefit only one company, a government document shows.

A September draft had proposed leniency for petrol cars weighing 909 kg (2,004 lb) or less - a carve-out widely seen as favouring Maruti Suzuki, which controls 95% of India's small‑car market.

India's Power Ministry has now removed that exemption and tightened other parameters, increasing pressure on all automakers to ramp up electric and hybrid car sales, according to the latest 41-page draft reviewed by Reuters.

The new rules curb over-compensation for vehicle weight, aim to level the field between light and heavy fleet manufacturers, and are designed to deliver real-world efficiency gains, the document said.

They introduce "a substantially steeper reduction pathway" for emissions, it added.

The power ministry did not respond to a request for comment.

PROMOTING ELECTRIC, HYBRID MODELS

Transport accounts for about 12% of India's energy use and is a major driver of petroleum imports and carbon emissions. Passenger vehicles make up nearly 90% of transport-related emissions, the document says.

Corporate Average Fuel Efficiency norms dictate permissible CO2 emissions across a manufacturer's fleet of passenger cars weighing less than 3,500 kg (7,716 lb). Updated every five years, they push automakers towards cleaner technologies including electrification, compressed natural gas and flex-fuel.

The new rules will apply from April 2027 for five years and are central to automakers' product and powertrain investment plans. It was not immediately clear when the rules will be finalised.

The September draft would have allowed fuel-consumption targets to rise faster with vehicle weight, easing compliance for makers of heavier cars such as Mahindra MAHM.NS, Tata TAMO.NS and Volkswagen VOWGp.DE, while tightening demands on lighter-fleet players such as Maruti MRTI.NS. That imbalance prompted the carve-out.

The revised plan reduces the extent to which heavier vehicles gain more relaxed targets.

"Manufacturers with heavier fleets ... are required to achieve stronger intrinsic efficiency improvements," the document said.

A credit system will reward companies that sell more EVs and plug-in hybrids, and pooling of fuel-consumption performance between companies will be allowed. Non-compliance will draw penalties of up to $550 per car.

The revised plan aims to cut average fleet emissions to about 100 grams/km over the five years to March 2032 from 114 grams/km. With credits, that could fall to as low as 76 grams/km if electric models reach 11% of total car sales by 2032.

(Reporting by Aditi Shah. Editing by Mark Potter)

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

By Aditi Shah

NEW DELHI, Feb 6 (Reuters) - India has scrapped a planned concession for small cars in upcoming fuel-efficiency rules after automakers including Tata Motors and Mahindra & Mahindra argued it would benefit only one company, a government document shows.

A September draft had proposed leniency for petrol cars weighing 909 kg (2,004 lb) or less - a carve-out widely seen as favouring Maruti Suzuki, which controls 95% of India's small‑car market.

India's Power Ministry has now removed that exemption and tightened other parameters, increasing pressure on all automakers to ramp up electric and hybrid car sales, according to the latest 41-page draft reviewed by Reuters.

The new rules curb over-compensation for vehicle weight, aim to level the field between light and heavy fleet manufacturers, and are designed to deliver real-world efficiency gains, the document said.

They introduce "a substantially steeper reduction pathway" for emissions, it added.

The power ministry did not respond to a request for comment.

PROMOTING ELECTRIC, HYBRID MODELS

Transport accounts for about 12% of India's energy use and is a major driver of petroleum imports and carbon emissions. Passenger vehicles make up nearly 90% of transport-related emissions, the document says.

Corporate Average Fuel Efficiency norms dictate permissible CO2 emissions across a manufacturer's fleet of passenger cars weighing less than 3,500 kg (7,716 lb). Updated every five years, they push automakers towards cleaner technologies including electrification, compressed natural gas and flex-fuel.

The new rules will apply from April 2027 for five years and are central to automakers' product and powertrain investment plans. It was not immediately clear when the rules will be finalised.

The September draft would have allowed fuel-consumption targets to rise faster with vehicle weight, easing compliance for makers of heavier cars such as Mahindra MAHM.NS, Tata TAMO.NS and Volkswagen VOWGp.DE, while tightening demands on lighter-fleet players such as Maruti MRTI.NS. That imbalance prompted the carve-out.

The revised plan reduces the extent to which heavier vehicles gain more relaxed targets.

"Manufacturers with heavier fleets ... are required to achieve stronger intrinsic efficiency improvements," the document said.

A credit system will reward companies that sell more EVs and plug-in hybrids, and pooling of fuel-consumption performance between companies will be allowed. Non-compliance will draw penalties of up to $550 per car.

The revised plan aims to cut average fleet emissions to about 100 grams/km over the five years to March 2032 from 114 grams/km. With credits, that could fall to as low as 76 grams/km if electric models reach 11% of total car sales by 2032.

(Reporting by Aditi Shah. Editing by Mark Potter)

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

** Hyundai Motor India HYUN.NS misses quarterly profit estimates, hurt by higher raw material costs nL4N3YY0RX

** Shares flat at 2,198.6 rupees

NEAR-TERM WEAKNESS FROM COMPETITION

** Jefferies ("underperform", PT cut to 1,900 rupees) says weak results and increased competition from Maruti Suzuki India MRTI.NS and Tata Motors Passenger Vehicles TAMO.NS to HYUN's top-selling Creta SUV cloud margin outlook; adds valuation expensive with market share at 25-year low

** Nomura ("buy," PT cut to 2,698 rupees) says under first Indian CEO, Tarun Garg, HYUN will focus on being more agile to meet 2030 domestic market share target of 15%

** Slate of new model launches from October 2026 to help improve growth trajectory "sharply" - Nomura

** Motilal Oswal ("buy", PT cut to 2,567 rupees) says while ramp-up of new Pune facility to hurt margins in near term, SUV-heavy lineup makes co well-positioned to benefit from premiumisation trend

** UBS ("buy", cuts PT to 2,690 rupees) says despite elevated costs, HYUN's broader outlook remains constructive on a strong launch pipeline and healthy exports momentum

(Reporting by Nandan Mandayam in Bengaluru)

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

Feb 2 (Reuters) -

• HYUNDAI MOTOR INDIA Q3 CONSOL PAT 12.34 BILLION RUPEES; IBES EST. 13.93 BILLION RUPEES

• HYUNDAI MOTOR INDIA Q3 CONSOL TOTAL REVENUE FROM OPERATIONS 179.73 BILLION RUPEES

Further company coverage: 005380.KS

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Corrects paragraph 3 to say Hyundai India IPO was in 2024, not last year

By Amy-Jo Crowley, Jayshree P Upadhyay, Kane Wu and Aditya Kalra

LONDON/MUMBAI/HONG KONG, Jan 9 (Reuters) - Reliance Jio Platforms is considering an initial public offering this year that would float 2.5% of the company, people familiar with the matter said, a move that could make it the country's largest-ever IPO worth more than $4 billion.

The company, led by Mukesh Ambani, is the parent of India's largest telecom operator Reliance Jio - with more than 500 million users. Its debut is the country's most highly anticipated IPO this year.

In November, investment bank Jefferies estimated that Reliance Jio's valuation stood at $180 billion. At that valuation, a 2.5% stake sale would raise $4.5 billion, dwarfing Hyundai Motor India's HYUN.NS $3.3 billion IPO in 2024.

Over the past six years, Jio has diversified into artificial intelligence and raised funds from well-known investors including KKR KKR.N, General Atlantic, Silver Lake and the Abu Dhabi Investment Authority.

Reliance would like to list only 2.5% of Jio's shares given the large size of the company, the sources said, even though a proposal from India's market regulator to reduce the minimum size of share sales for large companies seeking IPOs to 2.5% from 5% is awaiting approval from the finance ministry.

"The preference is to list 2.5% at this point if the law gets changed as a smaller amount creates more pricing tension," one of the sources with direct knowledge said, adding that some bankers were pitching a valuation of $200 billion to $240 billion for the business, though Reliance hasn't decided on a firm number.

Reliance RELI.NS did not respond to Reuters requests for comment. The sources declined to be named as they were not authorised to speak publicly.

It has not been decided if the Jio IPO would be a so-called offer-for-sale, which allows existing shareholders to sell their shares to the public, or if it would also involve the issuance of new stock. Hyundai's India IPO, for example, was an offer-for-sale and did not raise new funds.

The Jio listing would add to strong momentum in India's IPO market over the last couple of years; it ranked as the world's No. 2 primary equity issuance market in 2025, raising $21.6 billion as of December 18, according to LSEG data.

TWO BANKS WORKING ON PROSPECTUS

In 2019, Ambani first flagged plans to list Jio within five years. Last year, Reuters reported that he delayed the offering beyond 2025 as the company wanted a higher valuation by expanding into other niche digital businesses.

Reliance Jio is also set to lock horns with Elon Musk, who is expected to launch the Starlink internet service in India in the coming months. Jio has also partnered Nvidia NVDA.O to develop AI infrastructure.

In August, Ambani said Jio would list in the "first half of 2026." The listing timeline depends on market conditions, one of the sources said.

Although formal appointments have yet to be made, bankers from Morgan Stanley MS.N and India's Kotak are already working with Reliance on drafting the IPO papers, which can be a drawn-out process, a fifth source with direct knowledge of the situation said.

Reliance is waiting for the 2.5% public float rule to be cleared by the finance ministry and the size of the sale could change in the coming months, the person added.

Reliance expects many foreign investors who invested in the company in recent years to seek an exit via the IPO, the person said.

Morgan Stanley and Kotak did not respond to Reuters requests for comment.

(Additional reporting by Vibhuti Sharma; Editing by Sumeet Chatterjee and Thomas Derpinghaus)

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

Jan 6 (Reuters) - INDIA AUTODEALERS BODY FADA:

• DEC’25 AUTO RETAIL AT 20,28,821 UNITS

• DEALER SENTIMENT REMAINS FIRMLY POSITIVE, WITH OUR SURVEY INDICATING 70.48% EXPECTING GROWTH

• OVER NEXT 3 MONTHS, RETAIL OUTLOOK REMAINS DECISIVELY UPBEAT

• DEC’25 AUTO RETAIL UP 14.63% YOY

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Adds executive's comment in paragraphs 4,5; Hyundai India's sales figures in paragraph 11

Jan 1 (Reuters) - India's leading carmakers reported a strong rise in December sales to dealers on Thursday, with tax cuts from earlier in the year fuelling demand into the final month of 2025.

In September, India cut goods and services tax on small cars to 18% from 28% and on sports utility vehicles with large engine capacities to 40% from about 50%, in a bid to spur consumer spending and bolster growth amid steep U.S. tariffs.

This benefitted market leader Maruti Suzuki's MRTI.NS small car portfolio, its biggest segment, with sales rising 50% to 92,929 units, the highest since January 2025.

Maruti's total sales to domestic dealers jumped 37% to a record 178,646 units.

The company, India's top carmaker by sales, has an order backlog of one and a half months for its most affordable models, Partho Banerjee, senior executive officer for marketing and sales told reporters.

The company would soon "take a call" on whether it wants to revise prices of small cars, Banerjee said.

Peer Tata Motors Passenger Vehicles TAMO.NS reported a 13% rise in domestic sales, with models such as the Nexon and Punch utility vehicles and the Tiago small car driving growth.

Tata expects sales growth to pick up in coming months as deliveries of newly launched models, like the Sierra SUV, commence.

Earlier in the day, Mahindra & Mahindra MAHM.NS - which has a car portfolio comprised entirely of SUVs - said its monthly sales grew 23% in December.

Its sales growth of 18% so far in fiscal year 2026 is among the fastest in the Indian car market, and has helped the Scorpio manufacturer leapfrog Hyundai India HYUN.NS and Tata to the no. 2 spot in the current financial year.

Hyundai's monthly sales, on the other hand, grew only 0.5% in December.

(Reporting by Meenakshi Maidas and Nandan Mandayam in Bengaluru; Editing by Janane Venkatraman and Mrigank Dhaniwala)

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Dec 31 (Reuters) - Hyundai Motor India HYUN.NS:

• TO INCREASE PRICES BY 0.6% FROM JAN 1, 2026

• PRICE INCREASE DUE TO RISE IN COST OF PRECIOUS METALS AND COMMODITIES

• ANNOUNCES A MINOR PRICE INCREASE

Source text: ID:nBSE4qzXpg

Further company coverage: HYUN.NS

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Dec 30 (Reuters) - Hyundai Motor India HYUN.NS:

• ENTERS COMMERCIAL MOBILITY SEGMENT WITH PRIME TAXI RANGE

Source text: ID:nNSE4lgzG2

Further company coverage: 005380.KS

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By Aditi Shah

NEW DELHI, Nov 28 (Reuters) - India's biggest carmakers including Tata Motors and Hyundai want the government to scrap a weight-based emission concession for small cars under planned new efficiency rules, a move they say would benefit just one company, letters seen by Reuters show.

Tata TAMO.NS, Mahindra & Mahindra MAHM.NS, JSW MG Motor and Hyundai HYUN.NS are concerned that a weight-based relief risks hurting India's EV goals while helping a single player, according to individual letters they wrote to the government.

They did not name the player but industry data shows and three auto executives told Reuters that Maruti Suzuki MRTI.NS would be the main beneficiary.

Maruti, the biggest seller of small cars in India, told Reuters that global car markets like Europe, the U.S., China, Korea and Japan all had some provisions in their emission regulations to protect the "very small cars".

'LIMITED POTENTIAL FOR EFFICIENCY IMPROVEMENTS'

Under India's current Corporate Average Fuel Efficiency norms, the quantity of permissible carbon dioxide emissions applies to all passenger cars weighing less than 3,500 kg (7,716 lb).

The new rules propose tightening average CO2 emissions to 91.7 grams/km from an earlier target of 113 grams/km. This will make it tougher for small cars to meet the target compared with large SUVs, pushing companies to sell more EVs.

In its latest draft, India has proposed leniency for petrol cars weighing 909 kg or less, measuring under four meters in length and with engine capacity of 1200 cc or below as they offer "limited potential for efficiency improvements".

This has created a sharp split between India's leading EV-focused companies and Maruti - for whom 16% of sales come from cars weighing under 909 kg - causing delays in finalising the regulation that is crucial for automakers to plan future product portfolios and investments in powertrain technology.

Three company executives told Reuters the 909 kg threshold was arbitrary and did not align with any global standards, alleging that the move only benefitted Maruti Suzuki.

In a letter to India's power ministry, which is drafting the rules, Mahindra requested omission of a "special category" or definitions based on size or weight.

"(This) can have adverse effects in terms of the nation's progress towards safer, cleaner cars, and can alter the level playing field for industry players," it said.

RISKS TO INDUSTRY STABILITY AND CUSTOMERS

Hyundai told the industries ministry in its letter that the exemption may be perceived internationally as a step backward, at a time when global markets are converging toward stricter fuel-efficiency and zero-emission standards.

"Abrupt policy changes favouring a specific segment risk undermining industry stability and customer interests, as future investments and technology rollouts are planned on the basis of established norms," Hyundai said in a statement to Reuters.

JSW MG Motor said that over 95% of cars under 909 kg come from a single carmaker, without naming anyone.

"A relaxation restricted to this weight band would disproportionately benefit one manufacturer," it said in its letter to the road transport ministry dated November 21.

Tata, Mahindra and JSW MG Motor did not respond to a request for comment. India's power, transport and industries ministries also did not respond to requests.

Maruti told Reuters that small cars consume much less fuel and emit less carbon dioxide than bigger cars, so having this "safeguard" will help both CO2 reduction and fuel saving.

About 16% of its sales in India are of cars weighing less than 909 kg but demand has been falling as buyers choose bigger SUVs.

(Reporting by Aditi Shah; Editing by Emelia Sithole-Matarise)

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

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)

(([email protected]; https://www.linkedin.com/in/chandini-monnappa-8a37b013b/;))

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]))

Rewrites throughout, adds August sales numbers for Maruti, Hyundai and Tata Motors

Sept 1 (Reuters) - India's top carmakers reported lower sales to dealers for a fourth straight month in August amid weak demand, with SUV maker Mahindra & Mahindra scaling down its dispatches ahead of a government decision on lower consumption tax.

Maruti Suzuki MRTI.NS, Mahindra & Mahindra MAHM.NS, Hyundai Motor India HYUN.NS and Tata Motors TAMO.NS are India's four largest carmakers, cornering 80% of sales. Their combined sales dropped 8.7% in August.

Analysts at Nomura said automotive dealers stocked up conservatively for August ahead of the key tax cut decision, as buyers delay festive season purchases expecting lower prices.

Prime Minister Narendra Modi had announced sweeping tax reforms, including tax cuts on small cars, effective from October, with India's goods and services tax (GST) council meeting later this week to discuss the matter.

Mahindra's sports utility vehicle sales fell 9% in August, falling for the first time since January 2022. They are still up 15% so far in the fiscal year to March 2026.

The drop relegated Mahindra to the no. 4 spot, allowing Hyundai's Indian unit to return to its long-held no. 2 spot. Mahindra had held the no. 2 spot for the last four months.

Hyundai reported a sales decline of 11%. Tata Motors' car sales dropped 7%, cushioned slightly by a jump in electric vehicle sales to a record 8,540 units.

Meanwhile, market leader Maruti Suzuki MRTI.NS reported an 8% decline in sales, hurt by lower sales volumes of entry-level small cars. Sales of utility vehicles, including SUVs and multi-seater vehicles, fell for a third-straight month.

Small cars and two-wheelers are likely to see the biggest benefit, with the tax rate expected to drop to 18% from 28%, Reuters reported last month, citing a government source.

Auto stocks .NIFTYAUTO closed nearly 3% higher, hitting their highest levels since last October, on strong two-wheeler sales and hopes of tax cuts.

Eicher Motors EICH.NS reported a 57% surge in domestic sales in its Royal Enfield stable and TVS Motor TVSM.NS logged a 28% growth.

(Reporting by Urvi Dugar and Nandan Mandayam, additional reporting by Mridula Kumar; Editing by Sonia Cheema and Janane Venkatraman)

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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)

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

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)

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

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)

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

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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Adds details and background throughout

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.

Urban Indians have tightened discretionary spending for a better part of this year, with wage hikes lagging the growth seen in previous years.

Car makers delivered 312,849 units to dealers last month, the Society of Indian Automobile Manufacturers said in a statement, down 7.4% from 337,757 units a year before.

For the June quarter, car sales to dealers slipped 1.4% to a two-year low. On a quarter-on-quarter basis, sales were down 13%, compared with a 9.6% drop in the same period last year.

Sales of cars to dealers usually decline between the March and June quarters as manufacturers generally prop up sales with discounts in the first three months of the year to clear excess inventory.

Car sales hit record highs for three consecutive financial years in the world's third-largest car market, before losing steam in 2024-25 amid a fall in disposable income.

Sales grew by a mere 2% in the financial year to March 2025 after rising 8.7% in fiscal 2024 and 27% in fiscal 2023.

Industry insiders expect overall car sales in India to grow just 1%-2% in the year to March 2026, citing flailing demand.

Last week, a dealers' body said challenges in securing rare-earth materials "have stalled component production, further constraining supply and retail volumes."

"Overall sentiments across categories have remained subdued so far, even as the industry continues to navigate supply-side challenges," SIAM President Shailesh Chandra said.

Automakers are counting on festive demand and lower loan rates to help sales recover.

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

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