M&M

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

Further company coverage: MAHM.NS

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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)

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

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

Further company coverage: MAHM.NS

(([email protected];))

Rewrites throughout, adds executive comment in paragraph 2

By Nandan Mandayam and Chandini Monnappa

July 30 (Reuters) - Mahindra & Mahindra MAHM.NS said it is "comfortably covered" on rare-earth magnets, joining rival Hyundai India HYUN.NS in downplaying near-term risks from China's export curbs, as it banks on substitutes like light rare-earths and ferrites to shield production.

Mahindra Auto and Farm Sector CEO Rajesh Jejurikar said in a post-earnings call that the company had "taken variety of actions to de-risk supply," and it is stocked through March 2026.

China, the source of 90% of global rare earth magnets, curbed exports in April in response to U.S. tariffs, pushing automakers to seek alternatives. The magnets are key to EV motors and components in conventional cars like power windows and speakers.

Earlier on Wednesday, Hyundai India also said it had sufficient inventory after it posted a better-than-expected quarterly profit.

Scorpio SUV maker Mahindra's June quarter profit rose 32% to 34.50 billion rupees ($394.58 million), topping analysts' estimate of 30.98 billion rupees, per data compiled by LSEG.

Robust rural demand, a steady tractor market, a strong SUV offering and deep distribution in semi-urban as well as rural areas have helped Mahindra sustain momentum even as overall industry growth slows.

India's domestic car sales have lost steam, growing 8% in fiscal year 2024 and 2% in fiscal 2025 after double-digit gains in the previous two years. Automakers expect sales growth to slow further to 1%–2% in the current fiscal year, reflecting a broader slowdown.

However, Mahindra has been an outlier. India's second-largest carmaker said its SUV sales surged 22% in the quarter, driven by strong demand for new models and electric vehicles, while tractor and farm equipment sales rose 10%.

Jejurikar reaffirmed Mahindra's forecast of up to 19% SUV sales growth in FY26, bucking the industry slowdown.

Mahindra shares closed flat before it reported results, but are up 38% in 2025.

($1 = 87.4350 Indian rupees)

(Reporting by Nandan Mandayam and Chandini Monnappa in Bengaluru; Editing by Mrigank Dhaniwala and Shailesh Kuber)

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

** Shares of Mahindra and Mahindra Financial Services MMFS.NS fall as much as 3.2% to 257.05 rupees

** Non-bank lender gained 1% in the previous session on reporting higher profit in the June quarter

** CLSA notes that MMFS' June-quarter profit is largely dividend-driven, calling it a weak quarter marked by subdued disbursements across most segments except tractors

** Adds vehicle sales moderation weighs on asset under management (AUM) growth, further pressuring business momentum

** UBS and Morgan Stanley lower FY26 growth estimates, flagging persistent disbursement weakness, tepid demand in the passenger and commercial vehicle segments and elevated credit costs

** The average rating of 34 analysts tracking MMFS is "hold"; the median price target is 288.97 rupees, according to data compiled by LSEG

** MMFS shares are up 3% in 2025 so far, mirroring the 3% rise in the mid-cap index .NIFMDCP100, exchange data shows

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463;))

** India's Mahindra & Mahindra Financial Services MMFS.NS rises as much as 1.7% to 267.45 rupees

** Co's June quarter profit rises 6.4%, benefiting from higher interest income and rental income

** Revenue from operations up 15.6%

** YTD, MMFS up 2.8%

(Reporting by Ananta Agarwal in Bengaluru)

(([email protected]))

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;))

July 11 (Reuters) - Mahindra and Mahindra Ltd MAHM.NS:

• TO INVEST IN RIGHTS ISSUE OF MAHINDRA LOGISTICS TO FULL EXTENT OF CO'S RIGHTS ENTITLEMENT

• TO SUBSCRIBE TO ANY UNSUBSCRIBED PORTION OF RIGHTS ISSUE OF MAHINDRA LOGISTICS

Source text: ID:nBSEXKr91

Further company coverage: MAHM.NS

(([email protected];))

By Aditi Shah and Neha Arora

NEW DELHI, July 10 (Reuters) - Indian auto company Mahindra & Mahindra and parts maker Uno Minda are looking to make rare earth magnets locally to cut reliance on China, as New Delhi draws up incentives for production of the critical components, company and government sources told Reuters.

China, which produces around 90% of the world's rare earth magnets, put restrictions in April on their export, and while it has restarted some supplies to the United States and Europe, Indian companies are still awaiting clearance from Beijing.

The disruption has prompted Prime Minister Narendra Modi's government to look at building up stockpiles of magnets and offering incentives for the domestic manufacture of the components critical to making electric vehicles and electronics.

"Some companies have shown interest in investing or setting up rare earth magnet production, including Mahindra," said a senior government official in Modi's administration.

"It will take a year or two to have our own production ... But we have to find ways to be independent," he said.

During a meeting in June with India's ministry of heavy industries, Mahindra MAHM.NS said it is open to partnering with a company to make magnets or entering a long-term contract with a supplier producing them locally, according to one of the sources.

Mahindra, which recently launched two electric SUVs, has captive demand for magnets and has indicated that the investment to make them locally is not that high, said the source.

Uno Minda UNOI.NS, supplier of parts to major carmakers in India like Maruti Suzuki MRTI.NS, also expressed interest in local magnet manufacturing at the same meeting, two of the sources said.

Maruti has already warned of production delays amid the disruption of rare earth magnet supply from China.

Component maker Sona Comstar SONB.NS, which supplies gears and motors to companies including Ford F.N and Stellantis STLAM.MI, was the first Indian company to show interest in making magnets domestically, it told Reuters in June.

Mahindra declined to comment. Minda and the ministry of heavy industries did not immediately respond to a request for comment.

A final decision by the two companies on the timeline of any investment into making rare earth magnets will depend on incentives offered by the government and the availability of raw materials, two of the sources said.

Availability of raw materials in India, which has the world's fifth-largest reserves of rare earth minerals, is not the biggest challenge. But the mining of them is.

The government controls rare earth mining through its entity IREL, which had an output of about 2,900 tons of rare earth ores in 2024. Most materials are used by the country's atomic and defence units, while some are exported to Japan.

But after the recent disruption of China's exports, IREL has plans to stop exports and expand its domestic mining and processing.

JSW Steel JSTL.NS has expressed an interest in mining rare earths in India but it would need government approval, two sources said, adding that mining, unlike magnet production, could take several years.

JSW declined to comment.

India is also looking to secure raw materials from elsewhere. Last December, IREL sent a team to Myanmar to study local rare earth resources and Modi's government is working with five Central Asian countries to jointly explore the mining of critical minerals.

(Reporting by Aditi Shah and Neha Arora; Editing by Tom Hogue)

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

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];;))

** Shares of Mahindra & Mahindra Financial Services MMFS.NS rise about 3% to 268.80 rupees, set to snap three-session losing streak

** Non-banking financial co estimates overall disbursement in Q1 at around 128 bln rupees ($1.5 bln), growth of about 1% Y/Y

** Q1 collection efficiency estimated at 95% vs 94% year ago

** Trading volume at 5.4 mln shares so far, 1.7x 30-day avg

** YTD, MMFS up nearly 4% vs about 5% gain in Nifty 500 index .NIFTY500

($1 = 85.4730 Indian rupees)

(Reporting by Vijay Malkar)

(([email protected];))

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

• MAHINDRA AND MAHINDRA LTD - MDSL TO SELL 88% STAKE IN MEVA TO MATL

Source text: ID:nNSE1zybBz

Further company coverage: MAHM.NS

(([email protected];))

Repeats JUNE 10 story. No change to text.

By Aditi Shah

NEW DELHI, June 11 (Reuters) - Maruti Suzuki MRTI.NS has cut near-term production targets for its maiden electric vehicle e-Vitara by two-thirds because of rare earths shortages, a document showed, in the latest sign of disruption to the auto industry from China's export curbs.

India's top carmaker, which said on Monday it had not seen any impact yet from the supply crisis, now plans to make about 8,200 e-Vitaras between April and September, versus an original goal of 26,500, according to a company document seen by Reuters.

It cited "supply constraints" in rare earth materials that are vital in making magnets and other components across a range of hi-tech industries.

Maruti still plans to meet its output target of 67,000 EVs for the year ending March 2026 by ramping up production in subsequent months, the document said.

China's curbs on some rare earth exports have rocked the global auto industry, with companies warning of severe supply chain disruptions. While some companies in the United States, Europe and Japan are seeing supplies easing as they secure licences from Beijing, India is still waiting for China's approval amid fears of production stoppages.

Launched amid much fanfare at India's car show in January, the e-Vitara is crucial to Maruti's EV push in the country, marking its entry in a segment that Prime Minister Narendra Modi's government wants to grow to 30% of all car sales by 2030 from about 2.5% last year.

The setback could also hurt parent Suzuki Motor 7269.T, for which India is the biggest market by revenue and a global production hub for EVs. The bulk of the made-in-India e-Vitaras are earmarked for export by Suzuki to its major markets like Europe and Japan around summer 2025.

Maruti told reporters last week the rare earths issue had no "material impact" on the e-Vitara's launch timeline. Chair RC Bhargava said there was "no impact at the moment" on production, local media reported on Monday.

Maruti and Suzuki did not respond to requests for comment on Tuesday.

Maruti shares trading on the Indian stock exchange fell as much as 1.4% to the day's low after the news.

Maruti is yet to open bookings for the e-Vitara with some analysts warning it is already late to launch EVs in the world's third-largest car market where Tesla is also expected to begin sales this year.

Under its previous plan "A", Maruti was to produce 26,512 e-Vitaras between April and September - the first half of the fiscal year. Under the revised plan "B", it will manufacture 8,221, the document showed, indicating a two-thirds cut in its production schedule.

However, in the second half of the financial year - between October and March 2026 - Maruti plans to ramp up production to 58,728 e-Vitaras, or about 440 per day at its peak, versus a previous target of 40,437 for those six months under plan A.

Two supply chain sources confirmed Maruti's plan to scale back e-Vitara production because of rare earth magnet shortages but were not privy to the exact numbers.

The rare earths crisis comes as Maruti is already grappling to recover market share lost to Tata Motors TAMO.NS and Mahindra & Mahindra's MAHM.NS feature-rich SUVs. These companies also lead India's EV sales. Maruti's share of India's passenger vehicle market is down to 41% from a recent peak of about 51% in March 2020.

Suzuki has trimmed its sales target for India to 2.5 million vehicles by March 2031 from 3 million previously, and scaled back its lineup of EV launches to just four, instead of the six planned before, as competition in the South Asian nation intensifies.

(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, June 10 (Reuters) - Maruti Suzuki MRTI.NS has cut near-term production targets for its maiden electric vehicle e-Vitara by two-thirds because of rare earths shortages, a document showed, in the latest sign of disruption to the auto industry from China's export curbs.

India's top carmaker, which said on Monday it had not seen any impact yet from the supply crisis, now plans to make about 8,200 e-Vitaras between April and September, versus an original goal of 26,500, according to a company document seen by Reuters.

It cited "supply constraints" in rare earth materials that are vital in making magnets and other components across a range of hi-tech industries.

Maruti still plans to meet its output target of 67,000 EVs for the year ending March 2026 by ramping up production in subsequent months, the document said.

China's curbs on some rare earth exports have rocked the global auto industry, with companies warning of severe supply chain disruptions. While some companies in the United States, Europe and Japan are seeing supplies easing as they secure licences from Beijing, India is still waiting for China's approval amid fears of production stoppages.

Launched amid much fanfare at India's car show in January, the e-Vitara is crucial to Maruti's EV push in the country, marking its entry in a segment that Prime Minister Narendra Modi's government wants to grow to 30% of all car sales by 2030 from about 2.5% last year.

The setback could also hurt parent Suzuki Motor 7269.T, for which India is the biggest market by revenue and a global production hub for EVs. The bulk of the made-in-India e-Vitaras are earmarked for export by Suzuki to its major markets like Europe and Japan around summer 2025.

Maruti told reporters last week the rare earths issue had no "material impact" on the e-Vitara's launch timeline. Chair RC Bhargava said there was "no impact at the moment" on production, local media reported on Monday.

Maruti and Suzuki did not immediately respond to requests for comment on Tuesday.

Maruti is yet to open bookings for the e-Vitara with some analysts warning it is already late to launch EVs in the world's third-largest car market where Tesla is also expected to begin sales this year.

Under its previous plan "A", Maruti was to produce 26,512 e-Vitaras between April and September - the first half of the fiscal year. Under the revised plan "B", it will manufacture 8,221, the document showed, indicating a two-thirds cut in its production schedule.

However, in the second half of the financial year - between October and March 2026 - Maruti plans to ramp up production to 58,728 e-Vitaras, or about 440 per day at its peak, versus a previous target of 40,437 for those six months under plan A.

Two supply chain sources confirmed Maruti's plan to scale back e-Vitara production because of rare earth magnet shortages but were not privy to the exact numbers.

The rare earths crisis comes as Maruti is already grappling to recover market share lost to Tata Motors TAMO.NS and Mahindra & Mahindra's MAHM.NS feature-rich SUVs. These companies also lead India's EV sales. Maruti's share of India's passenger vehicle market is down to 41% from a recent peak of about 51% in March 2020.

Suzuki has trimmed its sales target for India to 2.5 million vehicles by March 2031 from 3 million previously, and scaled back its lineup of EV launches to just four, instead of the six planned before, as competition in the South Asian nation intensifies.

(Reporting by Aditi Shah
Editing by Mark Potter)

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

June 2 (Reuters) -

• INDIAN GOVERNMENT FINALISES NEW ELECTRIC VEHICLE POLICY - STATEMENT

• INDIA GOVERNMENT: INVESTMENT TOWARDS BUILDING, MACHINERY, RESEARCH, CHARGING NETWORK WILL BE CONSIDERED TO A LIMITED EXTENT

• INDIA GOVERNMENT: UNDER NEW SCHEME COMPANIES ALLOWED TO IMPORT EVS PRICED AT $35,000 AT REDUCED TARIFF OF 15% FOR 5 YEARS

• INDIA GOVERNMENT: IMPORT OF EVS AT LOWER DUTY PERMITTED ONLY IF COMPANIES INVEST $486 MILLION IN MANUFACTURING ELECTRIC CARS IN INDIA

• INDIA GOVERNMENT: UNDER NEW SCHEME COMPANIES WILL BE ALLOWED TO IMPORT A MAXIMUM OF 8,000 EVS EACH YEAR

• INDIA GOVERNMENT: COMPANIES MUST BEGIN EV PRODUCTION IN 3 YEARS AFTER GETTING APPROVAL

• INDIA GOVERNMENT: COMPANIES NEED TO ACHIEVE 25% LOCAL CONTENT IN CARS IN 3 YEARS, 50% IN 5 YEARS IN MAKING EVS

(([email protected];))

May 5 (Reuters) - Mahindra and Mahindra Ltd MAHM.NS:

• MAHINDRA & MAHINDRA - PLANNING NEW GREENFIELD PLANT FOR SUVS FOR FY28 AND BEYOND

Further company coverage: MAHM.NS

(([email protected];))

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

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

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

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

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

WHY IT MATTERS

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

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

KEY CONTEXT

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

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

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

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

BY THE NUMBERS

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

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NEW DELHI, April 26 (Reuters) - India's Mahindra & Mahindra MAHM.NS, known for its muscular SUVs and tractors, said on Saturday it had entered into a deal to buy a 58.96% stake in SML Isuzu SMLI.NS for 5.55 billion rupees ($65.00 million) to bolster its truck and bus business.

The acquisition will double Mahindra's market share in the trucks and buses segment of India's fast-growing economy to 6%, with a plan to raise that to 12% by fiscal year 2031, it said.

Mahindra will buy Japan-based Sumitomo Corp's 8053.T 43.96% stake in SML and Isuzu Motors' 7202.T 15% stake, apart from launching a mandatory open offer for an additional stake of up to 26% in the company, according to local regulations.

The purchase price is 650 rupees per share, a steep discount to SML's closing price of about 1,773.4 rupees on Friday. The stock has risen about 20% this year, partly on speculation about a deal. The open offer will be for 1,554.6 rupees per share.

"The acquisition of SML Isuzu marks a significant milestone in Mahindra Group's vision of delivering 5x growth in our emerging businesses," Mahindra Group CEO Anish Shah said in a statement.

"This acquisition is aligned with our capital allocation strategy for investing in high potential growth areas which have a strong right to win and have demonstrated operational excellence."

($1 = 85.3800 Indian rupees)

(Reporting by Sarita Singh and Krishna N. Das in New Delhi
Editing by Gareth Jones)

(([email protected]; https://twitter.com/krishnadas56 ;))

April 25 (Reuters) - Mahindra Holidays and Resorts India MAHH.NS reported a more than 11% fall in fourth-quarter profit on Friday due to sluggish demand for international travel amid geopolitical tensions and cost pressures.

Mahindra Holidays' consolidated net profit fell to 730.8 million rupees ($8.6 million) in the March quarter, from 823.6 million rupees a year earlier.

Geopolitical tensions and higher costs of travelling abroad held back consumers from taking trips in Europe.

That weighed on the company, which gets about half of its total revenue from its international business, which includes properties across Finland, Sweden and Spain.

Total income at its international business unit, Holiday Club Resorts (HCR), fell to 39.7 million euros ($45 million) from 41.9 million euros a year ago.

However, surging spending on local leisure travel amid the government's stated goal of making India one of the top five global tourist destinations by 2030, partly offset the decline in international business.

While domestic hotel occupancy dipped to 84.6% from 87.3% a year ago, revenue from the segment rose 5.7% to 4.03 billion rupees in the quarter, as people splurged more.

Overall revenue from operations fell 2.6% to 7.79 billion rupees owing to a 9% fall in the company's international business.

Shares of Mahindra Holidays, which offers resorts and sightseeing packages through its "Club Mahindra" membership and generates revenue through membership fees, closed 5.4% lower ahead of the results.

($1 = 85.3890 Indian rupees)

($1 = 0.8807 euros)

(Reporting by Ananta Agarwal in Bengaluru; Editing by Pooja Desai)

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