M&M

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

(([email protected];))

** Shares of CIE Automotive CIEA.MC fall around 5.8%

** A unit of Indian automaker Mahindra & Mahindra MAHM.NS sold shares representing about 3.58% of CIE Automotive's capital at a discount via accelerated bookbuilding

** Mahindra sold about 4.29 million shares of the Spain-based supplier of automotive components company's stake

** Shares sold at 27.75 euros apiece, discounted from the stock's Wednesday closing price of 30 euros

** CIEA on track for its worst day since November 2022, when it closed 6.0% lower

(Reporting by Gemma Guasch in Gdansk)

(([email protected]; +48 58 769 65 65))

Nov 28 (Reuters) - Mahindra and Mahindra Ltd MAHM.NS:

• MAHINDRA SUSTEN'S STAKE IN GELOS SOLREN WILL DILUTE TO 74% FROM 100%

Source text: ID:nBSE8stVxm

Further company coverage: MAHM.NS

(([email protected];))

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];))

Rewrites with details from investor call

By Kashish Tandon and Manvi Pant

Oct 15 (Reuters) - Hyundai Motor 005380.KS will invest $5 billion to expand its manufacturing and research operations in India, the South Korean automaker said on Wednesday, putting the world's third-largest car market at the heart of its growth strategy.

The money will help to increase Hyundai India's HYUN.NS annual production by about a third to 1.1 million vehicles by 2030, introduce 26 cars including its first hybrid vehicle tailored for India, and launch its luxury car brand Genesis in the country, Hyundai Motor CEO Jose Munoz told reporters.

The group expects the investment to generate $11 billion of revenue in India by 2030, making it Hyundai's second-largest market behind the U.S., Munoz said during the first investor day for its Indian unit.

BATTLE TO RECAPTURE MARKET SHARE

"India is a strategic priority in Hyundai's global growth vision. India isn't just important to Hyundai's global strategy. India is Hyundai's global strategy," Munoz said during the virtual presentation.

Hyundai India's shares rose nearly 3% after the news.

During nearly three decades in India, Hyundai had invested a total of $5 billion in the country.

The new outlay comes as the group is under pressure in its major U.S. market from President Donald Trump's tariffs, while also facing scrutiny over worker deaths and labour practices at its factory in Georgia.

Hyundai, which entered India in 1996, was until recently the country's second-largest carmaker, after Maruti Suzuki MRTI.NS, with bestsellers such as the Creta and Venue SUVs.

But its market share has slipped in recent months to below 14% from a peak of about 18% as it faces increased competition from Indian rivals such as Mahindra & Mahindra MAHM.NS, which has stepped into the second spot so far this fiscal year. By pumping fresh money into the market, Hyundai is targeting more than 15% share of the domestic market.

The Genesis luxury brand will debut in 2027, starting small but scaling “significantly” by 2032, Munoz said. The company expects the brand to enhance profitability and attract premium customers.

India will also become Hyundai's global export hub, with 30% of local output earmarked for overseas markets by 2030.

Hyundai India is planning dividend payouts of 20% to 40% of earnings, comparable to Maruti's 28.16% payout ratio in fiscal 2025 and Mahindra's 22%.

On Tuesday, Hyundai Motor India named insider Tarun Garg as the first Indian chief executive of the company, succeeding Unsoo Kim.

(Reporting by Kashish Tandon and Manvi Pant. Editing by Louise Heavens and Mark Potter)

(([email protected]; +918447554364;))

Oct 7 (Reuters) - India's auto sales grew 5.2% year-on-year in September, with strong sales across two-wheelers and passenger vehicles, as the government's tax rate cuts boosted demand during the festive season, the Federation of Automobile Dealers Association said on Tuesday.

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

(([email protected]; 8800437922;))

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];;))

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]))

Updates shares in paragraph 2, adds new quotes

Sept 4 (Reuters) - India late on Wednesday announced tax cuts on hundreds of consumer items ranging from soaps to small cars to spur domestic demand, and simplified its complicated goods and services tax structure to two rate slabs from four, with some exceptions for luxury and "sin" goods.

The benchmark BSE Sensex .BSESN and Nifty 50 .NSEI rose as much 1.1% on Thursday. By 11:55 IST, they pared some gains and were up about 0.5% each.

Here is how the industry has reacted so far:

ANISH SHAH, GROUP CEO & MD, MAHINDRA GROUP

"The next-generation GST reforms... mark a defining moment in India's journey towards building a simpler, fairer, and more inclusive tax system.

"At Mahindra, we view these reforms as transformative. They simplify compliance, expand affordability, and energise consumption, while enabling industry to invest with greater confidence."

SAURABH AGARWAL, PARTNER & AUTOMOTIVE TAX LEADER, EY INDIA

"The rationalization of GST rates on automotive vehicles and parts is a truly welcome and significant development. By making vehicles more affordable across all segments, this move will not only boost consumer spending but also simplify complex classification disputes that have long burdened the industry."

SAMIR SHAH, EXECUTIVE DIRECTOR & CFO, HDFC ERGO GENERAL INSURANCE COMPANY

"The GST Council decision to exempt individual health insurance from GST is a welcome development. This move aligns perfectly with the broader ambition of the regulator of 'Insurance for All by 2047,' providing a tangible step forward in that direction.

"While it is anticipated that there will be lowering of the premiums due to lowering of the taxes, we are yet to understand the extent of this reduction as this will also depend upon availability of the input tax credit, which will become clearer over the coming days."

NILESH SHAH, MANAGING DIRECTOR, KOTAK MAHINDRA ASSET MANAGEMENT CO

"The GST announcement lowers inflation, increases growth, boosts consumer sentiment, doesn't disturb the path of fiscal consolidation, improves ease of doing business and partially offers adverse effects of tariffs."

SHAILESH CHANDRA, PRESIDENT, SOCIETY OF INDIAN AUTOMOBILE MANUFACTURES

"This timely move is set to bring renewed cheer to consumers and inject fresh momentum into the Indian automotive sector. Making vehicles more affordable, particularly in the entry-level segment, these announcements will significantly benefit first-time buyers and middle-income families, enabling broader access to personal mobility."

C S VIGNESHWAR, PRESIDENT, FEDERATION OF AUTOMOBILE DEALERS ASSOCIATIONS

"The 56th GST Council meeting marks a watershed moment for India's automobile retail industry. This is a decisive step that will boost affordability, spur demand, and make India's mobility ecosystem stronger and more inclusive.

"One area that may need earliest clarification is about levy and treatment of cess balances currently lying in dealers' books, so that there is no ambiguity during transition."

SANJEEV ASTHANA, CEO, PATANJALI FOODS LIMITED

"At Patanjali Foods, we are fully committed to passing on these benefits to our consumers. This initiative will not only enhance FMCG penetration across urban and rural India but also act as a catalyst for broader economic revival by lifting consumption and supporting allied sectors.

"Our categories such as ghee, soaps, biscuits, noodles, honey, and chyawanprash will benefit from this reduction."

RADHIKA RAO, SENIOR ECONOMIST AT DBS BANK

"Lower GST rates will be positive for growth in the second half of the year and FY27, besides improving operational efficiency and expanding the size of the formal economy."

SHRIPAL SHAH, MD & CEO, KOTAK SECURITIES

"The GST rate cuts come at the right time which is just ahead of the festive season and against the backdrop of U.S. tariff tiffs. Lower taxes on essentials, FMCG products, autos and cement will leave consumers with more money in hand.

"This should directly boost demand, help traders and businesses see higher volumes, and may even favourably impact next quarter's earnings. It also carries the potential to ease inflation. The key will be how quickly companies pass on the benefits to customers."

DEVARSH VAKIL, HEAD OF PRIME RESEARCH, HDFC SECURITIES

"The GST reforms represent a paradigm shift toward economic rationality, with rate reductions on essentials like dairy, medicines, and food directly benefiting consumers due to their inelastic nature.

"Combined with RBI rate cuts, FY26 income tax rebates, and moderating inflation, these reforms create multiple stimuli for consumption and economic growth."

SUDARSHAN VENU, CHAIRMAN, TVS MOTOR COMPANY

"The GST tax cuts are a major move by the government to further turbocharge growth. For our industry especially, it’s a welcome move as it will help two wheelers become more accessible and also help those looking to upgrade."

NEERAJ AKHOURY, PRESIDENT, CEMENT MANUFACTURERS' ASSOCIATION AND MANAGING DIRECTOR, SHREE CEMENT

"Bringing GST down to 18% corrects a long-standing anomaly, aligns cement with other core building materials, and enhances global competitiveness. As a key input for infrastructure and housing, fairer taxation is expected to boost consumption and support projects from affordable housing to large-scale infrastructure."

NITIN RAO, CEO, INCRED WEALTH

"History has shown that such measures add significantly to GDP growth and a repeat is expected.

"Positive this will play out, though a small concern remains wherein recent measures like the rate cuts + budgetary measures taken on reduced taxes have not created necessary consumption boosters. We will have to wait and see if this welcome third step reverses the consumption trend or there is a deeper problem around availability of money with consumers."

RAHUL SINGH, CIO-EQUITIES, TATA ASSET MANAGEMENT

"The GST rate rationalisation, following the income tax cuts and lower interest rates, is a serious effort to boost consumption and hence the overall economic growth outlook.

"This coupled with certain process reforms is also positive for SMEs (small and medium enterprises). While the direct beneficiaries include consumer, autos, cement, healthcare and insurance sectors, the second order beneficiaries in terms of growth will be retail banks & NBFCs (non-bank financial companies)."

RAJNEESH KUMAR, CHIEF CORPORATE AFFAIRS OFFICER, FLIPKART GROUP

"By lowering input costs for farmers, simplifying compliance for MSMEs (micro, small and medium enterprises), and enabling small sellers, artisans/weavers and smallholder farmers to seamlessly join e-commerce across states, these reforms will further strengthen India's growth engine.

"Timely implementation of these reforms ahead of the upcoming festival season will surely give a huge boost to consumption across categories, widen market access, and accelerate our collective journey towards a Viksit Bharat."

SHEETAL ARORA, CEO, MANKIND PHARMA

"The GST revisions go beyond tax rationalization, they represent a structural shift in how India is enabling healthcare access. By removing GST on lifesaving rare-disease and oncology therapies and reducing it on essential medicines and diagnostics, the government has signaled that affordability and innovation can go hand in hand."

AMIT PAITHANKAR, CEO OF WAAREE ENERGIES

"The recent GST rationalization reflects the government’s commitment to India’s clean energy transition. The reduction will lower project costs and accelerate the capacity addition needed to meet India’s clean energy targets. It also sends a strong signal to investors, improving the financial viability and attractiveness of the renewable energy sector."

(Reporting by Chandini Monnappa, Bharath Rajeswaran, Manvi Pant, Kashish Tandon, Meenakshi Maidas, Nandan Mandayam, Yagnoseni Das, Vivek Kumar M and Hritam Mukherjee in Bengaluru; Editing by Mrigank Dhaniwala and Nivedita Bhattacharjee)

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

NEW DELHI, Sept 3 (Reuters) - India has decided to cut taxes on hundreds of consumer items ranging from soaps to small cars to spur domestic demand in the face of economic headwinds from U.S. tariffs, two state ministers told reporters on Wednesday.

The new goods and services tax (GST), which will become effective from September 22, will lead to an estimated revenue loss of 477 billion rupees, West Bengal minister Chandrima Bhattacharya said after the GST council meeting.

(Reporting by Nikunj Ohri; Editing by YP Rajesh)

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

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 use more domestic goods just when relations with the United States have soured due to high tariffs. His government has recommended hefty cuts on 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 tax 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.

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 & Mahindra MAHM.NS and Tata Motors TAMO.NS, 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.

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 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 and Jacqueline Wong)

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

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)

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

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

Further company coverage: MAHM.NS

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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

Further company coverage: MAHM.NS

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