Mahindra & Mahindra

July 6 - Ashok Leyland Ltd ASOK.NS:

• INDIA AUTODEALERS BODY FADA: JUNE OVERALL AUTO RETAIL SALES ROSE 21.83% Y/Y

• INDIA’S FADA: JUNE TWO-WHEELERS RETAIL SALES ROSE 21.22% Y/Y

• INDIA’S FADA: JUNE PASSENGER VEHICLE RETAIL SALES ROSE 28.63% Y/Y

• INDIA’S FADA: JUNE COMMERCIAL VEHICLE RETAIL SALES ROSE 16.88% Y/Y

Source text: [ID:]

Further company coverage: ASOK.NS

** Shares of India's Mahindra and Mahindra Financial Services MMFS.NS jump 3.79% to 330.25 rupees

** Company reported first-quarter disbursements rose 21% y/y, while gross business assets grew 12.5% y/y

** Jefferies ("hold", TP:325 rupees) says tech-led underwriting and centralized loan processing have improved turnaround time, productivity and underwriting consistency, though it remains cautious on weak monsoon risks

** Motilal Oswal ("buy", TP:318 rupees) says healthy disbursement growth and stable asset quality, along with comfortable liquidity position, support co's operating outlook

** MMFS rated "buy" on average by 33 analysts, median PT at 350 rupees, according to LSEG-compiled data

** YTD, stock down 18.11%

(Reporting by Surbhi Misra in Bengaluru)

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** Mahindra & Mahindra MAHM.NS shares rise 2.9% to 3,156.80 rupees

** Top gainer on Nifty auto index .NIFTYAUTO, which is up 1.1%

** Also among top 3 gainers on benchmark Nifty 50 .NSEI, which is up 0.46%

** Co reports 37% growth in June total sales, SUV sales jump 28%

** Other carmakers Tata Motors Passenger Vehicles TAMO.NS and market leader Maruti Suzuki India MRTI.NS also set to report their June sales on Wednesday

** Avg rating of 34 analysts on MAHM at "buy"; median PT is 4,200 rupees - LSEG-compiled data

** YTD, stock down 15% vs auto index's 5% drop and Nifty 50's 8.2% fall

(Reporting by Kashish Tandon in Bengaluru)

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June 17 (Reuters) - Mahindra and Mahindra Ltd MAHM.NS:

• MAHINDRA MAHINDRA - DILUTION OF STAKE IN MAHINDRA SUMMIT AGRISCIENCE LIMITED AND CHANGE IN ITS STATUS

• MAHINDRA MAHINDRA- MAHINDRA SUMMIT AGRISCIENCE WILL CEASE TO BE UNIT OF MAHINDRA AGRI SOLUTIONS, BECOME ASSOCIATE

• MAHINDRA MAHINDRA- MAHINDRA SUMMIT AGRISCIENCE WILL CONTINUE AS JV BETWEEN MAHINDRA AGRI SOLUTIONS SUMMIT AGRO INTERNATIONAL, JAPAN

Source text: [ID:]

Further company coverage: MAHM.NS

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June 15 (Reuters) -

• INDIA AUTO INDUSTRY BODY SIAM - INDIA'S MAY TOTAL DOMESTIC PASSENGER VEHICLE SALES 4,38,854 UNITS

• SIAM - INDIA'S MAY 3-WHEELER SALES 70,720 UNITS

• SIAM - INDIA'S MAY 2-WHEELER SALES 19,02,209 UNITS

• SIAM - LOWER BASE EFFECT OF PREVIOUS MAY, DEMAND CREATED DUE TO REDUCED GST RATES GETTING REFLECTED IN HIGHER OFF-TAKE THIS MONTH

Further company coverage: ASOK.NS

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By Munsif Vengattil and Aditi Shah

BENGALURU, June 12 (Reuters) - India has scrapped a licence requirement for radar sensors, freeing automakers to adopt technology that helps cars avoid crashes and drive themselves by sensing surrounding objects, in a bid to make some of the world's deadliest roads safer.

The world's third largest car market, India reported more than 177,000 deaths in nearly half a million road accidents in 2024, the latest figures show.

In a notice on Thursday, the government waived the licence requirement for radar sensors operating in the frequency band from 77GHz to 81 GHz. That lets companies enable the technology without the government having to separately assign the airwaves.

Automakers Maruti Suzuki MRTI.NS, Tata Motors TATM.NS and Mahindra & Mahindra MAHM.NS, stand to benefit from the change, as well the suppliers behind them, such as Germany's Bosch and Continental.

The radar sensors let a car gauge safe distances, and drive features such as emergency braking, adaptive cruise control and blindspot warnings, to form a basis for autonomous driving.

The change brings India in line with the United States, the European Union and a global telecoms standard, all of which dedicate the same frequency band to vehicle radar.

That lets carmakers and suppliers tap into the same off-the-shelf hardware worldwide, rather than having to build an India-specific version.

(Reporting by Munsif Vengattil and Aditi Shah; Editing by Clarence Fernandez)

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June 8 (Reuters) - Ashok Leyland Ltd ASOK.NS:

• INDIA AUTODEALERS BODY FADA: MAY OVERALL AUTO RETAIL SALES ROSE 9.55% Y/Y

• INDIA’S FADA:MAY PASSENGER VEHICLE RETAIL SALES ROSE 23.25% Y/Y

• INDIA’S FADA:MAY COMMERICAL VEHICLE RETAIL SALES ROSE 5.29% Y/Y

• INDIA’S FADA: MAY TWO-WHEELERS RETAIL SALES ROSE 7.54% Y/Y

Source text: [ID:]

Further company coverage: ASOK.NS

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By Gabriel Araujo

RIO DE JANEIRO, June 7 (Reuters) - Brazilian planemaker Embraer EMBJ3.SA expects India to move ahead in the coming months with a military transport aircraft tender in which its C-390 Millennium is a key contender, Chief Executive Francisco Gomes Neto told Reuters.

• India is set to issue a request for proposal (RFP) covering between 60 and 80 aircraft, Gomes Neto said on the sidelines of a global meeting of airline executives in Rio de Janeiro on Saturday.

• "The information we have is that the RFP should come in the next few months," he said.

• "And what we hear in the Indian market is that they want to make a decision by the end of 2027, which would be a very interesting time frame," he added.

• Embraer has been seeking to boost global sales of the C-390, and sees India as a strategic market.

• The aircraft is a major competitor to Lockheed Martin's LMT.N C-130 Hercules.

• Embraer has partnered with India's Mahindra MAHM.NS on the C-390.

(Reporting by Gabriel Araujo; Editing by Paul Simao)

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Recasts with company confirmation in lede

By Aditi Shah

NEW DELHI, June 3 (Reuters) - Tata Motors will use an automaking platform from Chery to locally build electric cars under its premium Avinya brand, underscoring the dependence on Chinese technology after its original plan with Jaguar Land Rover was shelved.

Reuters first reported that Tata TAMO.NS will use Chery's 9973.HK platform to launch its Avinya EV, as India's biggest electric carmaker seeks to get its long-delayed programme back on track and maintain its pole position.

Tata told Reuters in a statement it will leverage the Freelander platform produced in a joint venture between Chery and Jaguar Land Rover in China, with the cars being manufactured at its newly opened factory in Tamil Nadu in southern India.

While Chinese carmakers remain largely shut out of the world's third-largest auto market, their technology is quietly becoming hard to avoid, as local manufacturers lean on it to stay competitive in the global EV race.

The first Avinya model on Chery's platform is due in 2027 and will be shipped from China as a kit and assembled in India, two people familiar with the matter said, with efforts to source localised components already underway. A second EV is due for launch in 2029, with scope for two more vehicles beyond that, one of them said.

The strategy marks a pivot from Tata's original plan to use JLR's electrified modular architecture (EMA) for Avinya models targeted for 2025. That roadmap collapsed last year when JLR shelved plans to build EMA-based EVs in India, forcing Tata into a reset, Reuters previously reported.

Chery's platform deal is expected to make up for the lost time, granting Tata access to advanced features and technology it would otherwise take longer and more capital to develop, the people said.

"Avinya is being developed as a global premium brand. Our collaboration with JLR and its partners will be an important pillar," Tata said.

Chery told Reuters in a statement that its agreement with Tata builds on the success of its collaboration with JLR.

"Chery will act as a supplier to Tata Motors Passenger Vehicles. Each project operates under its own separate agreement with standard commercial terms," the Chinese carmaker said.

JLR in 2024 tapped Chery, a longtime partner, to develop and build electrified cars, including EVs and hybrids, under its resurrected Freelander brand. The cars will be based on the Chinese company's architecture and built at its factory in Changshu.

The deal with Chery is a "stopgap arrangement" because without fresh products, Tata risks losing its EV lead, one of the people said, adding the company still intends to develop its own dedicated platform over time.

All of the people declined to be identified because they are not authorised to speak to the media.

INDIAN COMPANIES LEAN ON CHINESE TECH

Electric models make up 14% of Tata's total sales with a target to more than double that to 30% by 2030. But rivals Mahindra & Mahindra MAHM.NS and JSW MG Motor are closing in on its lead, exposing gaps in its EV line-up and raising the risk of further market share losses.

The deal talks reflect a broader shift underway in India's automotive industry. India's automakers are increasingly importing China's EV technology while avoiding deeper equity partnerships due to political sensitivities.

Since 2020, New Delhi has placed strict curbs on investment from neighbouring nations mainly targeted at China, effectively freezing large-scale participation in the auto industry. While restrictions have eased slightly in sectors like electronics, carmakers still face high barriers.

JSW Motor, the independent carmaking venture of steel-to-cement billionaire Sajjan Jindal, also has a similar platform licensing deal with Chery.

Indian car companies have increased their spending on research and development of new technologies and powertrains in recent years, but like many global peers they are unable to match China's speed, cost and tech prowess in EVs.

Chery, China's largest car exporter, has rapidly expanded its global footprint.

Drawing inspiration from Toyota and Tesla, the Chinese automaker has pursued joint manufacturing arrangements with foreign companies across key markets, including Europe, Southeast Asia and Latin America.

(Reporting by Aditi Shah and Zhang Yan; Editing by David Dolan, Shri Navaratnam, Kevin Buckland and Louise Heavens)

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By Aditi Shah and Neha Arora

NEW DELHI, May 29 (Reuters) - China's SAIC Motor will sell a further 10% stake in its Indian carmaking venture, JSW MG Motor, two sources with direct knowledge of the matter told Reuters, in a deal that will make local partner JSW the biggest shareholder of the unit.

The decision follows SAIC's struggles to bring in equity and expand its operations due to New Delhi's investment curbs, even after it trimmed its 100% ownership of the company and brought on board domestic partners, including billionaire Sajjan Jindal's JSW Group.

SAIC 600104.SS currently owns a 49% stake in JSW MG Motor. The sources said it will sell a 10% stake to JSW, whose stake will then rise to 45% and make it the largest individual shareholder.

"Discussions are on, and JSW plans to close in a month. SAIC has agreed," said one of the sources.

The second source said the deal will give JSW greater operational control and oversight of the business. The sources spoke on condition of anonymity because they were not authorised to speak to media.

SAIC, JSW and JSW MG Motor did not respond to requests for comment.

The sources did not know the value of the deal. When JSW Group bought its initial 35% stake two years ago, the unlisted unit was valued at $1.2 billion.

The first source said SAIC would re-invest about 6 billion rupees ($63 million) of its proceeds into JSW MG Motor to launch new cars, including extended-range EVs and hybrids, in a manner that would not change its shareholding.

Talks between the two companies began last year with JSW offering to buy most of SAIC's share to become the venture's single-largest shareholder, Reuters had reported, but a disagreement on the valuation prevented a deal at the time.

JSW MG Motor, India's second-largest EV maker, has previously said it plans to invest up to $418 million to launch new cars and more than double its production capacity in the world's third-largest car market to 300,000 units a year.

While the company's sales have been rising, helped mainly by the Windsor EV, its losses have widened and competitors such as Mahindra & Mahindra MAHM.NS are eating into its EV lead.

SAIC entered India in 2019 with plans to invest more than $650 million in the country but has been unable to meet that target after the Indian government put investment curbs in place in 2020.

Rival BYD Co 002594.SZ, which entered India in 2021, also had plans to invest $1 billion for car manufacturing but is yet to get an approval from New Delhi to bring in funds.

While there has been a thaw in frosty relations between India and China in recent months, with New Delhi making it easier for Chinese firms to invest in sectors such as electronics, it is yet to lower the guardrail for carmakers.

($1 = 95.6863 Indian rupees)

(Reporting by Aditi Shah and Neha Arora; Editing by John Mair)

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May 14 (Reuters) - Mahindra and Mahindra Ltd MAHM.NS:

• MAHINDRA MAHINDRA - MOICML SELLS REMAINING 3.58% STAKE IN CIE AUTOMOTIVE S.A FOR EUR 126 MILLION

Further company coverage: MAHM.NS

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MUMBAI, May 12 (Reuters) - India's M&M Financial accepted bids worth 8.55 billion rupees ($89.5 million) in a sale of bonds maturing in one year and nine months, three bankers said on Tuesday.

The non-bank lender will pay a coupon of 7.9% and had invited commitment bids for the issue on Monday, they said.

The company did not immediately respond to a Reuters email seeking comment.

Here is the list of deals reported so far on May 12:

* Size includes base plus greenshoe for some issues

($1 = 95.5325 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Mrigank Dhaniwala)

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Rewrites throughout with company's comments from earnings call

By Kashish Tandon

May 8 (Reuters) - Hyundai Motor India HYUN.NS said on Friday that it expects domestic sales to grow 8-10% in the current fiscal and plans to invest $794 million to double capacity at its Maharashtra plant, as the carmaker rides a demand boost following tax cuts.

Vehicle sales in India have picked up since New Delhi lowered consumption taxes last September, lifting showroom footfalls.

Last month, however, the company said it would increase prices of its vehicles by up to 1% from May to combat rising commodity costs linked to the Iran war, joining domestic leader Maruti Suzuki MRTI.NS and global peers such as Mercedes-Benz MBGn.DE and BMW BMWG.DE.

The Creta SUV maker said it plans to double capacity at its Talegaon plant, near Pune city, to 320,000 units by the end of fiscal year 2027 and will also launch two new models, including a new electric SUV.

The market environment shifted meaningfully in the second half of fiscal 2026 following the government's tax overhaul, CEO Tarun Garg said in a post-earnings call.

For fiscal 2026, domestic sales were down 2.3%, underscoring the subdued demand that carmakers were seeing before the tax cuts took effect.

India cut levies on small cars and vehicles measuring less than four meters to 18% from 28%, lowering prices and lifting demand for price-sensitive models.

Exports have remained a bright spot for Hyundai, with fiscal 2026 exports rising 16.4%.

The Indian unit of South Korea's Hyundai Motor 005380.KS reported consolidated profit of 12.56 billion rupees for the fourth quarter, down from 16.14 billion a year earlier, but above analysts' estimate of 12.37 billion rupees, according to data compiled by LSEG.

Revenue rose 5.4% to 189.16 billion rupees.

($1 = 94.4800 Indian rupees)

(Reporting by Kashish Tandon in Bengaluru; Editing by Nivedita Bhattacharjee and Sonia Cheema)

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Rewrites throughout with industry executive's comments, background

By Kashish Tandon

BENGALURU, May 5 (Reuters) - India's auto dealerships are bracing for potential ripple effects from the ongoing Middle East conflict on fuel prices and supply chains, a senior industry official said on Tuesday, after retail vehicle sales hit a record for April.

Disruptions linked to the conflict have been limited so far in the world's third-largest car market, but could start affecting auto part supplies over the coming months if the instability persists, Sai Giridhar, vice president of the Federation of Automobile Dealers Associations, said in an interview.

"There have been some instances of supply getting disrupted, particularly in parts shipments coming from Europe, mainly in the after-market and service side," Giridhar said.

While the impact is not broad‑based, the repercussions could last for a few months even if the conflict were to end, he said.

The comments reflect wider concerns about a prolonged Iran war and the consequent energy shock hitting growth and raising inflation in the world's most populous country. Industry leader Maruti Suzuki MRTI.NS has warned it could raise prices as the war pushes up commodity costs.

India's auto sector has been in a good spot over the last few months, as last September's tax cuts have made cars more affordable, with easier financing conditions and strong demand from towns and rural areas.

However, margins are likely to come under pressure, analysts have said, as rising steel, aluminium and freight costs tied to the war hit the bottomline.

For now, a potential sharp rise in fuel prices remains a key risk for consumer sentiment, Giridhar said.

Indian state refiners have raised prices of liquefied petroleum gas for industrial customers and jet fuel sold to foreign carriers, but prices of gasoline, diesel and cooking gas have not been raised for domestic customers.

Overall retail vehicle sales in April rose 12.9% year-over-year to a record high of 2.6 million units for that month, data released by the auto body showed.

Car sales in rural India jumped 20.4%, nearly three times the urban growth of 7.1%, driven in part by a revival in small-car sales.

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

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By Neha Arora

NEW DELHI, April 28 (Reuters) - India's secondary aluminium producers, which rely on imported scrap, are facing shortages as the Middle East conflict disrupts supplies and drives up costs that are likely to be passed on to automakers, industry executives said.

India, one of the world's largest aluminium scrap importers, produces nearly half of its 4.2 million metric tons of aluminium through its secondary sector. The country depends heavily on scrap from the European Union, the U.S. and the Middle East, which accounts for about 30% of shipments.

"Various units are running at lower capacities and there are production cuts of 20-40%," said Jayant Jain, managing director at G. R. Metalloys, a leading producer based in the western city of Ahmedabad.

Scrap prices have jumped by nearly 30% since the Iran conflict began earlier this year, executives said, squeezing margins and depleting inventories.

"There is a hand-to-mouth situation in scrap plants because of shortages and price increase," said Sandeep Jain, managing director at Sunalco Alloys, adding that most companies have exhausted stocks.

The strain is expected to ripple through to the auto sector, dominated by companies such as Maruti Suzuki MRTI.NS, Tata Motors TATM.NS, Mahindra & Mahindra and Hyundai Motor India HYUN.NS, which together consume about 60% of domestically produced secondary aluminium.

"Due to the squeeze in scrap supplies, prices have been impacted, which will eventually be passed on to carmakers and ultimately, the buyers," said Dhawal Shah, managing partner at Metco Ventures.

India's auto industry body warned earlier this month of potential production disruptions, as well as higher input, fuel and freight costs due to the Middle East conflict.

Secondary producers are also grappling with a 2.5% import levy on scrap, which executives say is exacerbating cost pressures. A recyclers' body has sought intervention from the Prime Minister's Office to remove the tax, Reuters reported last week.

The government is studying the industry's request, Mines Secretary Piyush Goyal said.

A European industry lobby group has also asked India to exempt a 10% import duty on glass bottles and aluminium cans amid shortage fears linked to the Iran war. The conflict has already caused a shortage of Diet ​Coke, which is sold only in aluminium cans in India.

(Reporting by Neha Arora. Editing by Mayank Bhardwaj and Mark Potter)

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April 27 (Reuters) - Automakers in the world's third-largest car market are set to report robust quarterly earnings, while bracing for the fallout from the Iran war, which threatens to upend supply chains and spike raw material and fuel prices, analysts said.

Top Indian carmakers are expected to post revenue growth of about 11% to 26% in the fourth quarter, according to LSEG-compiled data, with steep tax cuts helping boost total sales to a record high in the fiscal year.

Industry leader Maruti Suzuki MRTI.NS will kickstart sectoral earnings on April 28.

IN THE FAST LANE

Maruti, which makes the popular compact SUV, Brezza, is expected to deliver one of its strongest quarters, supported by a richer export mix, analysts at Morgan Stanley said.

The carmaker is expected to post 25.5% revenue growth, per LSEG-compiled data.

For Thar-maker Mahindra & Mahindra MAHM.NS, a higher mix of electric SUVs and the price hikes taken in January are expected to support margins on a sequential basis, HDFC Securities said.

However, brokerages, including HDFC Securities, expect electric-vehicle-related spending and new model launch expenses to offset recent price increases.

Margins at Tata Motors Passenger Vehicles' TAMO.NS luxury unit Jaguar Land Rover are expected to recover sequentially as production restarted after the cyberattack at its UK plant last year.

The third-biggest carmaker was not included in the LSEG-compiled estimates after its October demerger from its commercial vehicles unit.

The overall industry's wholesale volumes grew 13.2% during the quarter, faster than the 2.4% growth recorded in the same period last year.

Hyundai Motor India HYUN.NS could be the outlier with profitability constrained by an adverse product mix, higher marketing spends and elevated input costs, analysts said.

The company is estimated to post revenue growth of around 11%, according to LSEG-compiled data.

RISK TO MARGINS

The months since India's tax cuts in September saw a revival in showroom footfalls and a volume-led recovery across price-sensitive small cars and sport utility vehicles, while lower discounts helped lift margins.

That cushion could be thinning.

Rising prices of steel and aluminium, as well as freight costs, are beginning to weigh on profitability, analysts said, as automakers remain wary of steep price hikes given competition and regulatory constraints.

Maruti had said it will likely raise prices, following in the footsteps of its global peers Mercedes-Benz MBGn.DE and BMW BMWG.DE.

HDFC Securities expects margins to soften sequentially across the sector.

Analysts at CLSA estimate that carmakers would have to increase prices by about 6% to soften the impact of soaring input costs.

"For upcoming quarters, the key risk is not demand collapse, but whether rising costs begin to outpace the industry's ability to protect margins," analysts at Motilal Oswal said in an earnings preview note.

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

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India File is published every Tuesday. Think your friend or colleague should know about us? Forward this newsletter to them. They can also subscribe here.

By Ira Dugal

Once again, India's vast army of mom-and-pop investors is punching above its weight. While foreign funds rushed for the exits in March and shares in Asia's third-biggest economy logged their steepest monthly fall in six years, retail clients doubled down on their bets.

Are they spotting value early, or missing risks that foreign funds see? Write to me at [email protected].

And, the Reserve Bank of India puts banks under its radar for acting against the interests of the country's forex markets. Scroll down for more on that.

THIS WEEK IN ASIA

** US, Iran leave door open to dialogue after tense Islamabad talks

** Singapore tightens monetary policy as Iran war fuels inflation risks

** Iran war leaves crisis-scarred countries counting the cost

** China's factories snap years-long deflation spell on Iran war price shock

** Protracted Iran war narrows BOJ's rate hike options

CORRECTION VIEWED AS A BUYING OPPORTUNITY

In the central Indian town of Indore, 24-year-old Yash Raj Verma rubbed his hands in glee when markets took another dive in March as missiles flew in the Middle East war. "When everyone is selling, you should buy, I have understood that," said the home tutor who increased his monthly investments into stock funds by a quarter to 25,000 rupees ($268.49).

Millions of small-time investors like Verma remained unfazed in March when India's equity benchmark index Nifty 50 .NSEI fell 11% - the biggest monthly drawdown in six years. By contrast, foreign funds exited at a record pace.

The retail investors, who have pumped in an average of $2 billion a month over the past five years, have become crucial to Indian equity markets and are currently the main shock absorber for stocks as global money pulls back.

With Indian equity indices correcting rapidly since the Iran war began and threatening to magnify last year's underperformance - the worst in decades - analysts are watching closely to see if this class of investor buckles.

Data from the Association of Mutual Funds in India suggests they did not, at least in the month of March.

Equity-oriented mutual funds recorded net inflows of 404.5 billion Indian rupees in March 2026, up from 259.78 billion rupees in February. Inflows through monthly contribution plans like the one that Verma subscribes to, known as Systematic Investment Plans (SIPs), rose over 7% to a record 321 billion rupees.

While one-off factors like financial year-end contributions for tax saving may have helped, analysts said that investors used the fall in the market to bottom-fish.

Tarun Surana, a Mumbai-based independent distributor of mutual funds, said most of his clients had chosen to top up monthly investment plans during March's fall in equity markets.

"The correction appears to have been viewed as a buying opportunity rather than a trigger for risk aversion, leading to a meaningful pickup in equity inflows during the month," said Himanshu Srivastava, analyst at Morningstar Investment Research India.

PRESSURE ON COMPANY EARNINGS

The Iran war, now into its second month, has impacted sectors ranging from ceramics to glass manufacturing and restaurants, which have already seen business curtailed. Sentiment indicators like the HSBC India Purchasing Managers' Index have also declined.

Foreign investors expect that weakened growth will weigh on earnings of Indian firms, leaving equity indices looking overvalued despite the decline in prices.

Citing these concerns, Goldman Sachs downgraded India to 'market weight' from 'overweight' in a note dated March 26.

The negative sentiment has been reflected in flows, with foreign investors selling nearly $18 billion in Indian stocks in March and so far in April.

Domestic investors, though, see it differently.

The Nifty 50 typically trades at a 50% price-to-earnings premium to the MSCI Emerging Markets index .MSCIEF, Edelweiss Mutual Fund said in an April report, but that gap has now halved, pointing to a favourable medium-term outlook for Indian equities.

"We have seen many cycles and the market always comes back," said Lokesh Tiwari, a 43-year-old Abu Dhabi-based finance professional who typically invests 100,000 to 200,000 rupees a month in Indian equities but bought funds worth nearly 12 times that last month by repatriating his overseas money.

"Every time a correction happens, I look for opportunities."

MARKET MATTERS

India's central bank is looking into the unwinding of rupee arbitrage trades by banks after a recent order asking them to cut positions.

Banks offloaded a chunk of these positions to corporates, who are not allowed to take arbitrage bets, drawing the Reserve Bank of India's scrutiny.

The RBI is also likely to push ahead with a plan to ask lenders to report all offshore trades involving the Indian rupee, after a ballooning of arbitrage was seen to accelerate depreciation of the South Asian currency.

Read that Reuters Exclusive here.

THIS WEEK'S MUST-READ

The northern state of Haryana, home to the auto hub of Manesar, raised the minimum wage by 35% after factory workers protested rising living costs ‌as a result of the U.S.-Israeli war on Iran.

While retail prices of petrol and diesel have not been raised in India, cooking gas costs have risen.

Protests were also seen in nearby Noida, which also houses thousands of industrial units.

Higher wage costs will hurt Indian auto firms such as Tata Motors TATM.NS and Mahindra MAHM.NS, and push up prices in an economy where inflation is currently modest.

($1 = 93.1120 Indian rupees)

(Reporting by Ira Dugal; Editing by Muralikumar Anantharaman)

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April 10 (Reuters) - Mahindra and Mahindra Ltd MAHM.NS:

• MAHINDRA & MAHINDRA - UNIT ENTERS INTO AGREEMENT WITH HISARLAR MAKINA SANAYI VE TICARET A.Ş., OGUZHAN SAHINKAYA AND MR. BUNYAMIN SARIOGLU

• MAHINDRA & MAHINDRA - MAHINDRA OVERSEAS INVESTMENT CO AND ERKUNT TRAKTOR TO SELL ENTIRE STAKE IN ERKUNT SANAYI ANONIM ŞIRKETI

• MAHINDRA & MAHINDRA - CONSIDERATION TO BE RECEIVED BY MOICML, ERKUNT TRAKTOR IS TURKISH LIRA 100,000

• MAHINDRA & MAHINDRA - MOICML AND ERKUNT TRAKTOR TO SELL THEIR ENTIRE 99.04% STAKE IN ERKUNT SANAYI ANONIM ŞIRKETI

Source text: ID:nBSE3v4HLN

Further company coverage: MAHM.NS

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Adds details, background from paragraph 2

April 6 (Reuters) - India’s auto dealers on Monday warned of possible supply or dispatch disruptions in the near term as the West Asia conflict drove up raw material costs, even as the fiscal year's total sales hit a record high.

The broader operating environment is clouded by the conflict, the Federation of Automobile Dealers Associations (FADA) said in a statement.

The war has pushed up oil and gas prices, raising fuel and logistics costs across the auto supply chain, while also driving up prices of key metals such as aluminium, copper and steel used in vehicle manufacturing.

Last week, India's top carmaker, Maruti Suzuki MRTI.NS, said that it will likely raise prices as the war pushed up commodity prices.

A FADA survey showed that more than half of the dealers experienced some form of supply or dispatch disruption linked to the ongoing conflict, with 17.1% reporting significant delays of three or more weeks.

On the fuel-price front, 36.5% of dealers reported that rising fuel prices are moderately to significantly affecting customer purchase decisions, it added.

While the impact was most pronounced in the commercial vehicle segment, passenger vehicle and two-wheeler dealers have also flagged selective delays based on different variants.

Indian retail auto sales rose 25.28% in March, the association said.

Passenger vehicle sales rose 21.48% year-over-year in March, while two-wheeler sales rose 28.68% and commercial vehicle sales rose 15.12%, closing the financial year on a strong note on sustained momentum from tax cuts that improved affordability, FADA said.

The total retail sales for the financial year rose 13.3%.

FADA also said passenger vehicle inventory, or the average time a car remained on the showroom floor, fell for a sixth consecutive month, to about 28 days in March, compared to 52 days in March last year.

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

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April 2 (Reuters) - Mahindra and Mahindra Ltd MAHM.NS:

• MAHINDRA & MAHINDRA- ANNOUNCED INCREASE IN PRICES OF UP TO 2.5% FOR ICE SUV AND CV RANGE WITH AN AVERAGE HIKE OF 1.6% ACROSS PORTFOLIO

• MAHINDRA & MAHINDRA- PRICE INCREASE, EFFECTIVE 6 APRIL 2026, IS ATTRIBUTED TO A COMBINATION OF COST ESCALATIONS.

Source text: [ID:]

Further company coverage: MAHM.NS

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By Aditi Shah

NEW DELHI, March 26 (Reuters) - India has asked automakers and parts suppliers to tighten production schedules to conserve fuel amid fears of shortages caused by disrupted oil and gas imports from the Gulf due to the Iran war, a government memo seen by Reuters shows.

The heavy industries ministry has also urged companies to shift factory operations from oil-based fuels to electricity and to use recycled aluminium or alternative materials as shortages and costs rise, according to the March 25 advisory.

For India, one of the world's largest oil and gas importers, the advisory underscores the government's mounting concern over the conflict and its disruption to energy flows, supply chains and availability of raw materials.

India's ministry of heavy industries did not immediately respond to a request for comment.

The government has already prioritised use of gas for households over industries, which get only about 80% of their average needs.

Some parts suppliers to India's leading carmakers like Maruti Suzuki MRTI.NS, Tata Motors TAMO.NS and Mahindra MAHM.NS are already reporting a shortage of gas to power operations at a time when vehicle sales are booming.

The ministry wants the sector to do more.

"Wherever technically feasible, a transition from oil-based fuels to electricity may be considered. Further, production schedules may be optimised to minimise idle and standby fuel consumption," the ministry said in its note.

The government wants companies to use recycled aluminium where possible and explore the use of alternative materials for packaging and other non-critical applications to reduce "demand pressure" amid shortages which are already affecting beer makers.

"I don't know how much we can change in the factory, but the takeaway is that this war is going to go on for a long time and we should be prepared," said an executive at an Indian carmaker.

(Reporting by Aditi Shah, Editing by William Maclean)

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

By Aditi Shah

NEW DELHI, March 26 (Reuters) - India has asked automakers and parts suppliers to tighten production schedules to conserve fuel amid fears of shortages caused by disrupted oil and gas imports from the Gulf due to the Iran war, a government memo seen by Reuters shows.

The heavy industries ministry has also urged companies to shift factory operations from oil-based fuels to electricity and to use recycled aluminium or alternative materials as shortages and costs rise, according to the March 25 advisory.

For India, one of the world's largest oil and gas importers, the advisory underscores the government's mounting concern over the conflict and its disruption to energy flows, supply chains and availability of raw materials.

India's ministry of heavy industries did not immediately respond to a request for comment.

The government has already prioritised use of gas for households over industries, which get only about 80% of their average needs.

Some parts suppliers to India's leading carmakers like Maruti Suzuki MRTI.NS, Tata Motors TAMO.NS and Mahindra MAHM.NS are already reporting a shortage of gas to power operations at a time when vehicle sales are booming.

The ministry wants the sector to do more.

"Wherever technically feasible, a transition from oil-based fuels to electricity may be considered. Further, production schedules may be optimised to minimise idle and standby fuel consumption," the ministry said in its note.

The government wants companies to use recycled aluminium where possible and explore the use of alternative materials for packaging and other non-critical applications to reduce "demand pressure" amid shortages which are already affecting beer makers.

"I don't know how much we can change in the factory, but the takeaway is that this war is going to go on for a long time and we should be prepared," said an executive at an Indian carmaker.

(Reporting by Aditi Shah, Editing by William Maclean)

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