M&M

Adds Mahindra CEO comments in paragraphs 4, 8-9; shares in paragraph 6

Nov 13 (Reuters) - India's Mahindra & Mahindra MAHM.NS will form a life insurance joint venture with Canada's Manulife MFC.TO, expanding an existing 5-year old partnership, with both companies committing up to $400 million over the next decade.

The joint venture marks Manulife's entry into one of the world's fastest growing insurance markets, the size of which is projected to more than double to 25 trillion rupees ($125.15 billion) by 2030, according to a report by McKinsey and Insurance Brokers Association of India.

Despite robust industry growth, insurance penetration in the country is still low, especially in rural and semi-urban areas.

Only 2% of the country's life insurance branches are in India's rural areas, Mahindra said in a presentation.

For Mahindra, which already has a vast retail lending business through Mahindra & Mahindra Financial Services MMFS.NS, the foray marks a "logical extension", the company said.

The venture will deepen the partnership between the two companies, which began with the launch of Mahindra Manulife Investment Management in 2020.

The joint venture is expected to break-even in about 10-12 years, Mahindra Group CEO and Managing Director Anish Shah told investors on a call, adding operations would begin in 15 to 18 months.

Each firm will invest $140 million in the first five years, they said on Thursday.

Shares of Mahindra traded 0.7% lower as of 11:37 a.m. IST.

Mahindra will fund the joint venture through its financial services arm and allocate one-third of the dividend it receives from Mahindra & Mahindra Financial Services MMFS.NS for the business, Shah said.

The company will apply for an insurance licence in the next two to three months, he said.

($1 = 87.8950 Indian rupees)

(Reporting by Kashish Tandon, Ananta Agarwal and Meenakshi Maidas in Bengaluru; Editing by Mrigank Dhaniwala and Ronojoy Mazumdar)

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Nov 12 (Reuters) - Manulife Financial Corp MFC.TO:

• MANULIFE AND MAHINDRA AGREE TO ESTABLISH 50:50 LIFE INSURANCE JOINT VENTURE IN INDIA

• MANULIFE FINANCIAL CORP - CAPITAL COMMITMENT FROM EACH SHAREHOLDER UP TO $400 MILLION

• MANULIFE FINANCIAL CORP - CO AND MAHINDRA TO APPLY FOR INSURANCE LICENSE

Source text: ID:nPn7b3gp8a

Further company coverage: MFC.TO

Nov 4 (Reuters) - Mahindra and Mahindra MAHM.NS:

• Q2 PAT 45.21 BILLION RUPEES

• Q2 REVENUE FROM OPERATIONS 334.22 BILLION RUPEES

Source text: [ID:]

Further company coverage: MAHM.NS

(([email protected];))

Adds exec comments from media call in paragraphs 7-9

By Kashish Tandon and Meenakshi Maidas

Oct 30 (Reuters) - Hyundai Motor India HYUN.NS said it is on track to exceed its export targets for fiscal year 2026, adding heft to the carmaker's efforts to build the country as its global export hub, while also beating second-quarter profit views on Thursday.

The automaker, India's third-largest by sales and second-largest by exports, plans to make the country a global export hub, targeting 30% of local output for overseas markets by 2030.

While domestic demand remained sluggish in the quarter, echoing a broader slowdown in India’s auto sector, exports remained a bright spot, surging 21.5% from a year earlier.

"Our strong export performance is set to surpass FY26 targets," MD Unsoo Kim said in a statement. Hyundai had aimed for 7–8% export growth this fiscal, with the Middle East and Africa among key markets.

Shares of the company rose 2.4% after the earnings report.

The company sees further room to grow its SUV share in the country, helped by government's tax reforms, incoming MD and CEO Tarun Garg said in a post-earnings call.

Garg said rural demand was improving, boosted by the tax reforms, with SUVs' contributions from rural markets slightly higher compared to urban this quarter.

Hyundai is also stepping up cost-saving measures as expenses from its new Pune plant are expected to weigh on near-term margins, Kim said, without specifying the initiatives.

The Indian unit of South Korea's Hyundai Motor 005380.KS reported a 14.3% rise in consolidated profit to 15.72 billion rupees (nearly $179 million) for the quarter, beating analysts' estimates of 14.95 billion rupees, per data compiled by LSEG.

SUVs, which carry higher margins, made up 71% of Hyundai's total sales volume, up from 69% a year earlier.

Hyundai had announced a $5 billion investment over five years to expand its India portfolio with hybrids, EVs, and its luxury brand Genesis.

($1 = 87.8950 Indian rupees)

(Reporting by Kashish Tandon and Meenakshi Maidas in Bengaluru; Editing by Harikrishnan Nair)

(([email protected]; Mobile: +91 8800437922))

Oct 17 (Reuters) - Mahindra and Mahindra MAHM.NS:

• EMBRAER AND MAHINDRA SIGN AGREEMENT FOR C-390 MILLENNIUM

Source text: ID:nNSE45B2Dc

Further company coverage: MAHM.NS

(([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)

(([email protected];))

Updates Sept 26 story on Sept 29 with more on VW's position on tax evasion allegations in paragraph 2, 18, 19

By Aditi Shah

NEW DELHI, Sept 26 (Reuters) - Volkswagen Group is restructuring its business in India, a key growth market for the carmaker where it wants to invest more but is grappling with policy changes and growing competition, according to an internal memo reviewed by Reuters.

The move comes as the company faces India's biggest-ever import tax demand of $1.4 billion for allegedly evading levies, and as its market share languishes despite more than two decades of operations in the world's third-largest car market. It has denied the tax claims.

Skoda Auto, a Volkswagen Group brand, which has been leading the carmaker's India strategy since 2018, has hired external experts to conduct a thorough review of its systems and processes and recommend improvements, Piyush Arora, chief of the local unit said in a memo sent to employees on September 8.

"Engaging a third party will provide a neutral perspective and some out-of-the-box ideas. I request you to support and cooperate with the team," he said in the memo, which was reviewed by Reuters.

The memo did not detail any changes on investment and jobs.

Skoda is deeply committed to the country and will invest in new technologies and manufacturing even as it faces shifting market trends and increasing competitive pressures, Arora added.

The exercise, which he said is the beginning of a "high performance organisation" journey and a course correction, coincides with the departure of close to 10 senior level executives at the carmaker over the past few weeks, two sources aware of the exits said.

This includes Nalin Jain, its finance chief and India board member; Sarma Chillara, head of human resources; Deepti Singh, head of external affairs; Hemant Malpani, head of cost control; and Shriniwas Chakravarthy, head of quality management, the two sources said, adding some resigned and some were asked to leave.

Skoda Auto Volkswagen India said that personnel changes correspond with standard company HR processes, without elaborating.

"India is a key market in Skoda Auto's internationalisation plans. We are always considering new business opportunities and are evaluating various options to ensure the best possible solution to implement our strategy in the highly dynamic Indian market," the company said in a statement.

Skoda is at a crucial point and needs to finalise its next leg of investment in India, a key market for the carmaker outside Europe given it no longer has a big presence in China and has exited Russia.

With stricter vehicle fuel efficiency norms set to kick in from 2027, all carmakers will have to introduce EVs and Skoda and VW currently do not sell any.

The company has plans to adapt Volkswagen's EV technology from China for India in which Skoda CEO Klaus Zellmer has previously said it will invest and is looking for a partner with "local roots". It has an agreement with India's Mahindra & Mahindra MAHM.NS to supply some EV components.

The restructuring is to ensure the company is lean and agile to compete with nimbler rivals ahead of making new investments, said a third source with direct knowledge of the matter.

Despite being in the country for over two decades, the carmaker has struggled to become a significant player. Volkswagen and Skoda brands together account for just 2% of India's 4 million units a year car market lagging newer rival Kia 000270.KS and established players like Toyota 7203.T.

Even as the carmaker's revenues in India have nearly tripled to $2.15 billion from about $766 million five years ago, its profit in India has dropped to $10.6 million from about $85 million over the same period, regulatory disclosures showed.

Skoda Auto Volkswagen is also embroiled in a legal tussle with India's tax department over allegations it misclassified imports of some Audi, VW and Skoda cars to evade higher duties.

It says its practices are in line with India's rules.

A court is yet to rule but if the company loses, it will need to fork out $2.8 billion including penalties and interest.

(Reporting by Aditi Shah; Editing by Kim Coghill, Neil Fullick)

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

Sept 15 (Reuters) - Ashok Leyland Ltd ASOK.NS:

• SIAM - INDIA'S AUGUST 2-WHEELER SALES 18,33,921 UNITS

• SIAM - INDIA'S AUGUST 3-WHEELER SALES 75,759 UNITS

• INDIA AUTO INDUSTRY BODY SIAM - INDIA'S AUGUST TOTAL DOMESTIC PASSENGER VEHICLE SALES 3,21,840 UNITS

Source text: [ID:]

Further company coverage: ASOK.NS

(([email protected];;))

NEW DELHI, Sept 11 (Reuters) - Some vehicles using 20% ethanol-blended fuel could suffer from reduced mileage and acceleration, a senior executive at Indian SUV maker Mahindra & Mahindra MAHM.NS said on Thursday.

Mahindra is drafting an advisory on the E20 blended fuel, which should reach customers next week, Nalinikanth Gollagunta, CEO of its automotive division, said at an industry body conclave.

E20 recently became the only choice of fuel at nearly 90,000 fuel stations across India, leading to complaints from motorists concerned about the impact on older vehicles.

(Reporting by Aditi Shah in New Delhi, Writing by Nandan Mandayam in Bengaluru
Editing by David Goodman)

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NEW DELHI, Sept 4 (Reuters) - Indian Finance Minister Nirmala Sitharaman unveiled tax cuts for hundreds of consumer items, from soap to cars, in the biggest overhaul of the goods and services tax (GST), set to take effect from September 22.

Here are key highlights:

MAJOR CHANGES

India will have two key tax rates of 5% and 18% from September 22, versus four now. A new tax slab of 40% will apply to high-end goods, but all additional levies above that are to be abolished, bringing down effective tax rates on mid-size and big cars.

REVENUE LOSS, INFLATION IMPACT

The government estimates the cuts will cause revenue loss of 480 billion rupees ($5.5 billion), far lower than economists' estimate ranging from 1 trillion rupees to 1.8 trillion rupees.

Citi said India's inflation could ease as much as 1.1 percentage points if the cuts are fully passed through to consumers. India's retail inflation rate fell in July to its lowest in eight years.

TAX CUTS ON DAILY ITEMS

A tax panel approved lower GST of 5% on items of everyday use such as packaged food, medicines, toothpaste, fruit, milk products, talcum powder and shampoo, against 12% to 18% now.

The cut is expected to lift the sales of fast-moving consumer goods firms such as Hindustan Unilever HLL.NS, Nestle NEST.NS and Godrej Industries GODI.NS, while lowering costs for farmers.

It will abolish tax on individual life and health insurance products sold by companies such as LIC LIFI.NS, SBI Life Insurance SBIL.NS and ICICI Prudential Life Insurance ICIR.NS.

HOLIDAY BOOST TO SALES

The government has cut taxes on items such as cars, TVs and even cement, which could boost sales during the festival season that typically runs from the last week of September until November. India's tax panel also cut GST on air conditioners, ambulances, dishwashers, three-wheelers and hybrid vehicles.

Carmakers such as Maruti MRTI.NS and Toyota 7203.T, and manufacturers of consumer applicance such as LG Electronics LGEL.NS and Sony 6758.T are set to benefit immediately when the new rates kick in.

The tax panel also lowered the effective tax for big cars to 40% from the current rate of as much as 50%, making cars from Mercedes-Benz AGMBGn.DE, AUDI Aktiengesellschaft and BMW BMWG.DE attractive. GST on EVs was kept at 5%, giving relief to carmakers such as Tata Motors TAMO.NS and Mahindra & Mahindra MAHM.NS after a panel recommended an increase.

The government lowered taxes on fertiliser and tractors to help lower costs for farmers, recently come in the spotlight as Prime Minister Narendra Modi vowed to protect them following a breakdown in India-U.S. trade talks.

MAIN LOSERS

GST was raised to 18% from 12% on apparel and clothing accessories that cost more than 2,500 rupees, which could hurt global brands such as Marks and Spencer MKS.L, Levi Strauss LEVI.N, and Zara.

The tax on coal went to 18% from 5%, but the effective tax rate on fizzy drinks make by PepsiCo PEP.O and Coca-Cola KO.N was held at 40%.

($1=87.5060 Indian rupees)

(Reporting by Aftab Ahmed; Editing by Clarence Fernandez)

(([email protected]; +91 99109 33884;))

By Nikunj Ohri

NEW DELHI, Sept 3 (Reuters) - Indian state and federal ministers will meet for two days from Wednesday to weigh the biggest cuts to consumption tax in eight years, aimed at spurring domestic demand in the face of economic headwinds from U.S. tariffs.

Coupled with cuts in personal tax unveiled in February, the cuts in the Goods and Services Tax (GST) are expected to boost consumption in the South Asian nation, whose economy grew at an unexpectedly higher pace of 7.8% in the quarter to June.

A panel on the tax, headed by Finance Minister Nirmala Sitharaman with ministers from all Indian states, will decide on a plan to cut the tax on more than 400 items, ranging from hair oil to small cars.

"With U.S. tariffs clouding exports in textiles, autos and possibly pharmaceuticals, India must pivot towards domestic consumption as the primary growth engine," said Manoj Mishra, a partner at Grant Thornton Bharat LLP.

The move is expected to boost sales of FMCG firms such as Hindustan Unilever and Godrej Industries, and consumer electronics companies such as Samsung Electronics 005930.KS, LG Electronics 066570.KS and Sony 6758.T.

Among automakers Maruti, Toyota Motor 7203.T and Suzuki Motor 7269.T are expected to be big winners.

The rush to cut the tax was triggered by Prime Minister Narendra Modi's call for greater self-reliance, when he vowed to lower GST by October, aiming to counter the U.S. tariffs of up to 50%.

TWO RATES INSTEAD OF FOUR

The ministers will consider a two-rate structure of 5% and 18%, instead of four now, with additional tax bands of 12% and 28%. It will also consider a higher tax of 40% on some luxury and "sin" goods such as cigarettes.

The plan is to sweep into the 5% category all items of daily use now in the category of 12%.

The panel will also consider lowering taxes on consumer items such as toothpaste and shampoo to 5% from 18%, and on small cars, air conditioners, and televisions to 18% from 28%.

Economists expect the cuts to cost $21 billion in revenue losses, with states set to lose more than the federal government.

While the states are broadly on board, there could be heated discussion on ways to make up their loss of revenue.

The panel is likely to discuss raising taxes on high end electric vehicles priced at more than 2 million rupees.

It will also consider raising tax to 18% from 12% on apparel priced above 2,500 rupees ($29), which would affect the premium offerings of Marks and Spencer MKS.L, Levi Strauss LEVI.N, and Zara.

Taxes on air travel in the premium and business classes could also go to 18% from 12%.

($1=87.5060 Indian rupees)

(Reporting by Nikunj Ohri; Editing by Clarence Fernandez)

(([email protected]; +91 90284 60730; Reuters Messaging: twitter.com/nikunj_ohri))

Adds comments from carmakers in paragraphs 13-15, bullet 4

By Nikunj Ohri and Aditi Shah

NEW DELHI, Sept 2 (Reuters) - An Indian tax panel has proposed steep increases in consumer levies on luxury electric cars priced above $46,000, a government document showed, a move that could impact sales of carmakers such as Tesla TSLA.O, Mercedes-Benz, BMW and BYD.

Prime Minister Narendra Modi is aiming to reform India's tax system and is pushing Indians to buy more domestic goods just when relations with the United States have soured due to high tariffs. His government has recommended hefty cuts in the goods and services tax (GST) that could make everything from shampoos to electronics cheaper.

The key panel tasked with making rate suggestions to India's powerful GST Council has backed sweeping cuts to many items in line with Modi's overhaul, but it has called for raising taxes on electric cars, the document detailing its recommendations showed.

The panel recommended raising the GST rate to 18% from 5% currently for EVs priced between 2 million and 4 million rupees ($23,000-$46,000). It also proposed hiking the tax to 28% for cars priced above $46,000, saying that such vehicles cater to the "upper segment" of society and are largely imported rather than manufactured domestically.

But Modi's government has simultaneously decided to do away with the 28% tax rate altogether, leaving the GST Council with the option to increase the tax on EVs to 18%, or put them in the newly planned 40% category carved out for certain luxury goods, said an Indian government source familiar with the discussions.

India's GST Council - led by the federal finance minister and which has members from all Indian states - is meeting on September 3-4 to review the proposals, and has the ultimate authority on decision-making.

The secretariat of the GST Council did not respond to Reuters queries.

After the Reuters story, the Nifty Auto index .NIFTYAUTO turned negative and fell as much as 0.5%, with local automakers Mahindra and Mahindra MAHM.NS falling almost 3% and Tata Motors TAMO.NS dropping 1.2%.

India's EV market is small, making up about 5% of total cars sold in April to July this year, but growth in the segment has been rapid: EV car sales in India rose 93% to 15,500 units during that period.

"The uptake of electric vehicles is increasing and while, the low rate of 5% is to incentivise faster adoption of electric vehicles, it is also important to signal that higher-priced EVs can be taxed at higher rates," said the document, detailing the tax panel's recommendations.

The proposal could affect domestic EV makers such as Mahindra and Tata Motors, though their offerings above the 2 million rupee price range are limited.

Foreign automakers offering high-end EVs stand to be hit harder. Tesla just launched its Model Y in India with a base price of $65,000, while Mercedes-Benz MBGn.DE, BMW BMWG.DE and BYD 002594.SZ also offer top-end luxury electric cars.

Carmakers have unanimously called for maintaining the 5% GST rate to avoid disrupting India's EV aspirations and targets.

In a statement, Tata told Reuters it is "imperative" the tax rate is retained as any hikes will slow "the transition to clean mobility." BMW India, which is investing in expanding its EV portfolio in the country, said an increase "can derail the vision of high electric adoption and local production."

Mercedes-Benz said that an upward revision would "mostly impact the entry level" luxury cars. "Our top end luxury battery EVs will not be impacted much," said Santosh Iyer, CEO, Mercedes-Benz India.

In July, Tata Motors led the Indian electric car market with a near 40% market share, while Mahindra has 18%. BYD holds a 3% market share, while Mercedes and BMW together account for 2%. Tesla is taking bookings but has yet to start deliveries.

Tesla has opened two showrooms in India in recent months, years after Elon Musk repeatedly criticised high tariffs of roughly 100% on imported cars. The GST tax is applied on top of these tariffs, further increasing costs of Tesla cars.

(Reporting by Nikunj Ohri and Aditi Shah; Editing by Aditya Kalra, Jacqueline Wong, Kim Coghill and Bernadette Baum)

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)

(([email protected];))

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))

By Aditya Kalra, Saurabh Sharma and Aditi Shah

NEW DELHI/LUCKNOW, Aug 29 (Reuters) - The Indian government is facing a backlash from motorists after the nationwide rollout of fuel blended with 20% ethanol, amid fears - stoked by a lack of clarity from some automakers - that it may affect the performance of particularly older vehicles.

India, the world's third largest car market, 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 of the country's 90,000 fuel stations. Older blends, like E5 and E10, typically seen as more compatible with old cars, have mostly been removed, leaving drivers with just one choice.

The government says E20 lowers carbon emissions, but has conceded in press statements addressing consumer worries that there could be a "marginal" hit on fuel efficiency of old cars.

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.

Two fuel station managers in the northern city of Lucknow told Reuters that drivers were getting so angry that some stations had stopped providing information about the change.

"People hurl abuse at us. We then decided to not tell people about it," said one manager, Ramesh Pandey.

The ministries of petroleum and road transport did not respond to requests for comment.

"India's ethanol journey is unstoppable," petroleum minister Hardeep Singh Puri said on August 8, adding that "some lobbies with vested interests are actively attempting to create confusion."

Days later, Puri's ministry said "in case of certain older vehicles, some rubber parts and gaskets may require replacement" calling it a "simple process".

'GIVE ME THE RIGHT FUEL'

Automakers are racing to assuage concerns, but there is little clarity on the future of old cars in particular.

Skoda VOWG_p.DE has issued an FAQ on its website saying that components of its cars sold in India before April 2020 "are not evaluated" for E20. In a statement to Reuters on Friday, it said vehicles sold after that date were "fully material-compatible", without explaining what happens to older cars.

Toyota 7203.T said in a statement that "a modest variation" in fuel economy in its cars was likely with E20.

On Monday, Renault RENA.PA told tech consultant Ankur Thakur, 28, via email that his 2022 Renault Triber had "not been tested" for E20 and it was "not advisable" to use the fuel.

He posted the screenshot of the email on X, which went viral and attracted more than 700,000 views. Renault then told Thakur - and Reuters in a statement on Friday - that based on government tests E20 poses "no serious challenges" for old cars.

Thakur, unconvinced, is now using a pricey no-ethanol fuel still available at select pumps. "Just give me the right fuel my car was originally made for," he told Reuters.

A Reuters review of a fuel tank flap and user manual of an Audi Q3 purchased last year in India showed it recommended only E5 and E10 fuel.

The fuel tank of a 2024 Mahindra MAHM.NS Scorpio was pasted with a warning sticker: "CAUTION. PETROL/E10 FUEL ONLY".

Mahindra and Audi did not respond to Reuters queries.

(Reporting by Aditya Kalra, Saurabh Sharma and Aditi Shah. Additional reporting by Arpan Chaturvedi. Editing by Mark Potter)

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Aug 25 (Reuters) - Mahindra and Mahindra Ltd MAHM.NS:

• MAHINDRA AND MAHINDRA LTD - AVINASH RAO APPOINTED AS MD & CEO OF MAHINDRA SUSTEN

Source text: ID:nBSEGpgFw

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Aug 15 (Reuters) - Mahindra and Mahindra Ltd MAHM.NS:

• SHOWCASES FOUR SUV DESIGN CONCEPTS BASED ON NU_IQ PLATFORM

• SUVS BASED ON NU_IQ PLATFORM SET TO LAUNCH STARTING 2027

Source text: ID:nBSE1Dqxdz

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Aug 7 (Reuters) - India's upcoming festive season is expected to lift near-term sentiment among auto dealers, but U.S. tariffs could dent consumer confidence, prompting higher household savings and weighing on discretionary spending, including vehicles, the Federation of Automobile Dealers Association (FADA) said on Thursday.

Vehicle dealers expect major festivals, including Rakhi, Janmashtami, Independence Day and Ganesh Chaturthi, along with targeted promotional schemes and healthy stock levels to drive sales.

However, the anticipated wealth erosion from fresh tariffs by the U.S. could erode consumer confidence, trigger a precautionary rise in household savings and exert pressure on discretionary spending, including on vehicles, FADA said.

(Reporting by Chandini Monnappa in Bengaluru; Editing by Sonia Cheema)

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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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Adds executive's comment in 10th paragraph

By Meenakshi Maidas and Nandan Mandayam

Aug 1 (Reuters) - Indian automaker Mahindra & Mahindra MAHM.NS logged a 20% year-on-year jump in SUV sales to dealers in July on strong demand for newer models and electric SUVs, while its rivals struggled, data from the firms showed on Friday.

Most Indian carmakers, barring Mahindra, are struggling to grow sales amid a broader industry slowdown in the world's third-largest car market.

Having gotten off to a slow start to 2025, manufacturers are counting on a pick-up in demand from late August, buoyed by festivals, as well as tax cuts and lower interest rates.

Still, for the year to March 2026, they expect industry-wide car sales to grow just 1% to 2%, compared to a 2% growth in the previous year.

Domestic sales for Hyundai India HYUN.NS and Tata Motors TAMO.NS slid by a tenth each in July, as the companies suffer from stalling demand for their small cars and older SUVs – a segment which contributes two-thirds to their dispatches.

Successful launches over the past year at Mahindra have drawn customers away from Hyundai and Tata Motors, with Mahindra leaping past the two to the no. 2 spot in the domestic car market, long held by Hyundai.

However, Tata Motors, which leads sales of electric vehicles in India, reported a 42% jump in EV sale volumes to a record 7,124 units.

The EV leader's dominance has been challenged over the last year by Mahindra and JSW MG Motor.

Meanwhile, market leader Maruti Suzuki reported that sales to dealers were largely flat. Although sales of small cars such as the Swift rose for the first time in six months, this was offset by a decline in SUV sales.

Maruti's July performance was hurt by price hikes to upgrade models with six airbags, its sales and marketing head Partho Banerjee said in a call on Friday.

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

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July 31 (Reuters) - Mahindra and Mahindra Ltd MAHM.NS:

• MAHINDRA AND MAHINDRA LTD - SELLS 35% STAKE IN MAHINDRA IDEAL LANKA TO IDEAL MOTORS

• MAHINDRA AND MAHINDRA LTD - RECEIVES LKR 50 MILLION FOR SALE OF STAKE IN MAHINDRA IDEAL LANKA

Source text: ID:nBSE9x173b

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