MARUTI
New to Zerodha? Sign-up for free.
New to Zerodha? Sign-up for free.
-
Share Price
-
Financials
-
Revenue mix
-
Shareholdings
-
Peers
-
Forensics
- 5D
- 1M
- 6M
- YTD
- 1Y
- 5Y
- MAX
This data is currently unavailable for this company.
-
Summary
-
Profit & Loss
-
Balance sheet
-
Cashflow
This data is currently unavailable for this company.
| (In Cr.) |
|---|
| (In Cr.) | ||||
|---|---|---|---|---|
|
This data is currently unavailable for this company. |
| (In %) |
|---|
| (In Cr.) |
|---|
| Financial Year (In Cr.) |
|---|
-
Product wise
-
Location wise
Revenue Mix
This data is currently unavailable for this company.
Revenue Mix
This data is currently unavailable for this company.
Recent events
-
News
-
Corporate Actions
Maruti Suzuki To Recall 39,506 Grand Vitara Vehicles
Nov 14 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:
RECALL OF 39,506 GRAND VITARA VEHICLES
SUSPECTED SOME OF THESE VEHICLES MAY NOT ACCURATELY REFLECT FUEL STATUS AS INTENDED
TO RECALL GRAND VITARA MANUFACTURED FROM 9TH DECEMBER 2024 TO 29TH APRIL 2025
Source text: ID:nnAZN4QSQNI
Further company coverage: MRTI.NS
(([email protected];;))
Nov 14 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:
RECALL OF 39,506 GRAND VITARA VEHICLES
SUSPECTED SOME OF THESE VEHICLES MAY NOT ACCURATELY REFLECT FUEL STATUS AS INTENDED
TO RECALL GRAND VITARA MANUFACTURED FROM 9TH DECEMBER 2024 TO 29TH APRIL 2025
Source text: ID:nnAZN4QSQNI
Further company coverage: MRTI.NS
(([email protected];;))
Indian auto dealers see stronger year-end sales after record October boost
Adds details throughout; FADA President comments in paragraphs 6 and 9
By Kashish Tandon
Nov 7 (Reuters) - India's retail vehicle sales should remain strong through the rest of 2025, an auto dealers' body said on Friday, as tax cuts and strong rural demand boosted retail sales to a record high in October.
October's overall vehicle sales, the first full-month numbers since goods and services tax (GST) was simplified on September 22, jumped 40.5% year-on-year to more than 4.2 million units, the Federation of Automobile Dealers Associations (FADA) said.
Vehicle sales had been muted the first three weeks of September. The new GST regime slashed the levy on entry-level two-wheelers and cars to 18% from 28% — a move aimed at reviving demand in the price-sensitive segment.
"I think small-car sales have been one of the breakthrough moments after the GST cut," FADA President CS Vigneshwar said. "Rates have returned to pre-COVID levels, which is fantastic for entry-level cars and overall growth."
Retail car sales in rural areas grew three times faster than in urban centres, while two-wheeler sales rose at twice the pace, FADA said, adding that the tax cuts encouraged first-time buyers.
Last week, market leader Maruti Suzuki MRTI.NS said it expects small-car sales to grow faster than SUVs that have a 40% GST rate.
In October, passenger vehicle sales rose 11.4%, while two-wheeler sales surged nearly 52%, both at record-high levels, FADA said.
"We definitely know this growth is going to continue," Vigneshwar said. FADA expects the upcoming wedding season, harvest-linked cash flows, and new model launches to sustain sales momentum through the rest of the year.
During the 42-day festive period through September and October, which included Dussehra and Diwali, overall retail sales rose 21% on-year, led by a 22% increase in two-wheeler sales and a 23% rise in passenger vehicles.
(Reporting by Kashish Tandon and Meenakshi Maidas in Bengaluru; Editing by Harikrishnan Nair)
(([email protected]; +91 8921483410;))
Adds details throughout; FADA President comments in paragraphs 6 and 9
By Kashish Tandon
Nov 7 (Reuters) - India's retail vehicle sales should remain strong through the rest of 2025, an auto dealers' body said on Friday, as tax cuts and strong rural demand boosted retail sales to a record high in October.
October's overall vehicle sales, the first full-month numbers since goods and services tax (GST) was simplified on September 22, jumped 40.5% year-on-year to more than 4.2 million units, the Federation of Automobile Dealers Associations (FADA) said.
Vehicle sales had been muted the first three weeks of September. The new GST regime slashed the levy on entry-level two-wheelers and cars to 18% from 28% — a move aimed at reviving demand in the price-sensitive segment.
"I think small-car sales have been one of the breakthrough moments after the GST cut," FADA President CS Vigneshwar said. "Rates have returned to pre-COVID levels, which is fantastic for entry-level cars and overall growth."
Retail car sales in rural areas grew three times faster than in urban centres, while two-wheeler sales rose at twice the pace, FADA said, adding that the tax cuts encouraged first-time buyers.
Last week, market leader Maruti Suzuki MRTI.NS said it expects small-car sales to grow faster than SUVs that have a 40% GST rate.
In October, passenger vehicle sales rose 11.4%, while two-wheeler sales surged nearly 52%, both at record-high levels, FADA said.
"We definitely know this growth is going to continue," Vigneshwar said. FADA expects the upcoming wedding season, harvest-linked cash flows, and new model launches to sustain sales momentum through the rest of the year.
During the 42-day festive period through September and October, which included Dussehra and Diwali, overall retail sales rose 21% on-year, led by a 22% increase in two-wheeler sales and a 23% rise in passenger vehicles.
(Reporting by Kashish Tandon and Meenakshi Maidas in Bengaluru; Editing by Harikrishnan Nair)
(([email protected]; +91 8921483410;))
EXCLUSIVE-Toyota steps up India expansion with new SUVs, rural push as profit surges
Repeats Thursday item with no change to text
Toyota to launch 15 new and refreshed models in India by 2030
New model line-up to include 2 SUVs and a pickup truck, source says
Deepening its rural network is a key part of Toyota's strategy
Toyota has said it plans to invest $3 billion to expand India production
By Aditi Shah
TOKYO, Oct 30 (Reuters) - Toyota 7203.T plans to launch 15 new and refreshed models in India by the end of the decade while deepening its rural network, sources said, as record profits in the country make the market increasingly important.
Battered by stiff local competition in China, several global automakers have set their sights on India as a market worthy of heavy investment, especially given surging economic growth that has averaged 8% over the past three fiscal years.
Underscoring Toyota's revved-up ambitions, the Japanese automaker is now aiming to lift its share of the country's passenger car market before the end of the decade to 10% from 8% currently, one of the sources said.
Success would see it become less reliant on alliance partner Suzuki 7269.T, which provides Toyota with vehicles that are then rebadged under the Toyota brand.
NEW PLANT, NEW SUVS
Toyota last year announced more than $3 billion in investment to expand production at its existing factory in southern India and build a new car plant in western Maharashtra state. But details of its product line-up plans and dealership strategies have not previously been reported.
The 15 models will include Toyota's own cars, vehicles supplied by Suzuki, as well as upgrades of existing models, according to three people briefed on the matter.
There are likely to be at least two new SUVs from Toyota's own brand, which will be designed to take on leading SUV-makers like Mahindra & Mahindra MAHM.NS and Hyundai Motor HYUN.NS, as well as an affordable pickup truck to widen its appeal in rural India, one of the sources said.
Toyota is also setting up lean-format sales outlets, with just one or two cars on display instead of the whole range, and smaller, two-bay workshops in rural areas to make deeper inroads there, the source added.
"Toyota has a two-pronged strategy for India - lure customers from competitors with mid-market and premium SUVs and continue adding buyers in small towns and rural markets," a second source said.
The sources, who declined to be named as the information is private, said the strategy is still being finalised.
Toyota said in a statement that it had not announced this information and it does not comment on speculation.
RECORD INDIA PROFITS DRIVING GROWTH
The Japanese carmaker's local unit, Toyota Kirloskar Motor, logged a record profit of $640 million last fiscal year, thanks to its alliance with Suzuki which boosted sales and increased factory utilisation.
While Toyota is by far the larger automaker, Suzuki's local unit, Maruti Suzuki MRTI.NS, is the top car company in India, where it dominates with fuel-efficient and affordable small, compact cars.
India has become Toyota's third-largest market outside Japan - trailing the United States and China. Toyota sold over 300,000 vehicles in India last year, of which about 60% were Suzuki models, and has a growing share of exports to countries in Africa and the Middle East.
Toyota's capacity expansion will happen in phases, but once complete, it will be able to produce over 1 million cars a year in India between its two manufacturing sites.
The carmaker's hybrids like the Urban Cruiser Hyryder SUV and Innova Hycross MPV have helped it carve out a lead in alternate-fuel vehicles - something it plans to build on with new product launches, the sources said.
At its new plant in western Aurangabad city, Toyota's first product is expected to be an SUV which will come with multiple powertrains including gasoline, hybrid and electric and which will be sold in India and exported, the sources said.
In addition to Toyota's $3 billion investment, Suzuki announced in August that it would invest $8 billion in India over the next five to six years. Hyundai Motor 005380.KS said this month, it will invest $5 billion to expand its Indian manufacturing and research operations.
(Reporting by Aditi Shah in Tokyo, Additional reporting by Daniel Leussink; Editing by David Dolan and Edwina Gibbs)
(([email protected]; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))
Repeats Thursday item with no change to text
Toyota to launch 15 new and refreshed models in India by 2030
New model line-up to include 2 SUVs and a pickup truck, source says
Deepening its rural network is a key part of Toyota's strategy
Toyota has said it plans to invest $3 billion to expand India production
By Aditi Shah
TOKYO, Oct 30 (Reuters) - Toyota 7203.T plans to launch 15 new and refreshed models in India by the end of the decade while deepening its rural network, sources said, as record profits in the country make the market increasingly important.
Battered by stiff local competition in China, several global automakers have set their sights on India as a market worthy of heavy investment, especially given surging economic growth that has averaged 8% over the past three fiscal years.
Underscoring Toyota's revved-up ambitions, the Japanese automaker is now aiming to lift its share of the country's passenger car market before the end of the decade to 10% from 8% currently, one of the sources said.
Success would see it become less reliant on alliance partner Suzuki 7269.T, which provides Toyota with vehicles that are then rebadged under the Toyota brand.
NEW PLANT, NEW SUVS
Toyota last year announced more than $3 billion in investment to expand production at its existing factory in southern India and build a new car plant in western Maharashtra state. But details of its product line-up plans and dealership strategies have not previously been reported.
The 15 models will include Toyota's own cars, vehicles supplied by Suzuki, as well as upgrades of existing models, according to three people briefed on the matter.
There are likely to be at least two new SUVs from Toyota's own brand, which will be designed to take on leading SUV-makers like Mahindra & Mahindra MAHM.NS and Hyundai Motor HYUN.NS, as well as an affordable pickup truck to widen its appeal in rural India, one of the sources said.
Toyota is also setting up lean-format sales outlets, with just one or two cars on display instead of the whole range, and smaller, two-bay workshops in rural areas to make deeper inroads there, the source added.
"Toyota has a two-pronged strategy for India - lure customers from competitors with mid-market and premium SUVs and continue adding buyers in small towns and rural markets," a second source said.
The sources, who declined to be named as the information is private, said the strategy is still being finalised.
Toyota said in a statement that it had not announced this information and it does not comment on speculation.
RECORD INDIA PROFITS DRIVING GROWTH
The Japanese carmaker's local unit, Toyota Kirloskar Motor, logged a record profit of $640 million last fiscal year, thanks to its alliance with Suzuki which boosted sales and increased factory utilisation.
While Toyota is by far the larger automaker, Suzuki's local unit, Maruti Suzuki MRTI.NS, is the top car company in India, where it dominates with fuel-efficient and affordable small, compact cars.
India has become Toyota's third-largest market outside Japan - trailing the United States and China. Toyota sold over 300,000 vehicles in India last year, of which about 60% were Suzuki models, and has a growing share of exports to countries in Africa and the Middle East.
Toyota's capacity expansion will happen in phases, but once complete, it will be able to produce over 1 million cars a year in India between its two manufacturing sites.
The carmaker's hybrids like the Urban Cruiser Hyryder SUV and Innova Hycross MPV have helped it carve out a lead in alternate-fuel vehicles - something it plans to build on with new product launches, the sources said.
At its new plant in western Aurangabad city, Toyota's first product is expected to be an SUV which will come with multiple powertrains including gasoline, hybrid and electric and which will be sold in India and exported, the sources said.
In addition to Toyota's $3 billion investment, Suzuki announced in August that it would invest $8 billion in India over the next five to six years. Hyundai Motor 005380.KS said this month, it will invest $5 billion to expand its Indian manufacturing and research operations.
(Reporting by Aditi Shah in Tokyo, Additional reporting by Daniel Leussink; Editing by David Dolan and Edwina Gibbs)
(([email protected]; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))
PREVIEW-Earnings recovery in sight for Indian automakers after five quarters of sluggish growth
Oct 27 (Reuters) - Indian automakers are likely to see double-digit profit growth in the September quarter, according to brokerages, driven mostly by demand for two-wheelers and tractors, with improvement in the passenger vehicle segment set to reflect in December.
Auto companies' sales volumes and profitability have taken a hit, with firms posting single-digit profit growth in the previous five quarters, due to consumption slowdown, a global chip shortage and uncertainties surrounding U.S. tariff policies.
However, tax and interest rate cuts are seen boosting demand further, with the recovery expected to fully show in the December quarter, according to Hitesh Thakurani and Shubhangi Kejriwal of HDFC Securities.
The government's September tax relief on goods from soaps to small cars helped lift retail sales in the final weeks of the month.
IN THE FAST LANE
Indian automakers are expected to post 10–17% revenue growth and about 15% profit growth year-on-year in the September quarter, led by gains in two-wheelers and tractors, according to HDFC Securities.
Top two-wheeler makers Bajaj Auto BAJA.NS and TVS Motor TVSM.NS are set to benefit from stronger exports, favourable forex rates and a 12% fall in shipping costs, the brokerage said. TVS will report results on Tuesday and Bajaj Auto on November 7.
Tractor sales have also aided the recovery, supported by a normal monsoon, lower borrowing costs and tax cuts, according to Motilal Oswal.
Analysts at Nomura, Kapil Singh and Siddhartha Bera, said tractor volumes were likely to beat expectations.
SHORT-LIVED GLOOM
Growth in the passenger vehicles segment is expected to remain soft, according to Nomura, due to supply shortages, with sales set to dip 1.5% year-on-year in the quarter.
Market leader Maruti Suzuki MRTI.NS is likely to face short-term margin pressure from higher launch costs and customer discounts, but exports, led by its E-Vitara line, are emerging as a key growth engine, according to brokerages.
Tata Motors TAMO.NS is expected to lag due to cyberattack-led production shutdowns at Jaguar Land Rover but several brokerages said growth is set to pick up due to tax cuts, festive demand and exports.
Maruti will report results on Friday, followed by Mahindra & Mahindra MAHM.NS on November 4. Tata Motors is yet to announce a date.
Auto stocks outperform most other major sectors in 2025 so far https://reut.rs/3JrEtju
Aggregate ratings and implied change for India's key auto companies https://reut.rs/4oemZGI
Brokerages' estimates of revenue, profit of India's auto companies in Q2 https://reut.rs/42W6TJ1
What brokerages expect from India's key auto companies in Q2 https://reut.rs/47jiX8r
(Reporting by Meenakshi Maidas and Bharath Rajeswaran in Bengaluru; Editing by Janane Venkatraman)
(([email protected]; +91 8921483410;))
Oct 27 (Reuters) - Indian automakers are likely to see double-digit profit growth in the September quarter, according to brokerages, driven mostly by demand for two-wheelers and tractors, with improvement in the passenger vehicle segment set to reflect in December.
Auto companies' sales volumes and profitability have taken a hit, with firms posting single-digit profit growth in the previous five quarters, due to consumption slowdown, a global chip shortage and uncertainties surrounding U.S. tariff policies.
However, tax and interest rate cuts are seen boosting demand further, with the recovery expected to fully show in the December quarter, according to Hitesh Thakurani and Shubhangi Kejriwal of HDFC Securities.
The government's September tax relief on goods from soaps to small cars helped lift retail sales in the final weeks of the month.
IN THE FAST LANE
Indian automakers are expected to post 10–17% revenue growth and about 15% profit growth year-on-year in the September quarter, led by gains in two-wheelers and tractors, according to HDFC Securities.
Top two-wheeler makers Bajaj Auto BAJA.NS and TVS Motor TVSM.NS are set to benefit from stronger exports, favourable forex rates and a 12% fall in shipping costs, the brokerage said. TVS will report results on Tuesday and Bajaj Auto on November 7.
Tractor sales have also aided the recovery, supported by a normal monsoon, lower borrowing costs and tax cuts, according to Motilal Oswal.
Analysts at Nomura, Kapil Singh and Siddhartha Bera, said tractor volumes were likely to beat expectations.
SHORT-LIVED GLOOM
Growth in the passenger vehicles segment is expected to remain soft, according to Nomura, due to supply shortages, with sales set to dip 1.5% year-on-year in the quarter.
Market leader Maruti Suzuki MRTI.NS is likely to face short-term margin pressure from higher launch costs and customer discounts, but exports, led by its E-Vitara line, are emerging as a key growth engine, according to brokerages.
Tata Motors TAMO.NS is expected to lag due to cyberattack-led production shutdowns at Jaguar Land Rover but several brokerages said growth is set to pick up due to tax cuts, festive demand and exports.
Maruti will report results on Friday, followed by Mahindra & Mahindra MAHM.NS on November 4. Tata Motors is yet to announce a date.
Auto stocks outperform most other major sectors in 2025 so far https://reut.rs/3JrEtju
Aggregate ratings and implied change for India's key auto companies https://reut.rs/4oemZGI
Brokerages' estimates of revenue, profit of India's auto companies in Q2 https://reut.rs/42W6TJ1
What brokerages expect from India's key auto companies in Q2 https://reut.rs/47jiX8r
(Reporting by Meenakshi Maidas and Bharath Rajeswaran in Bengaluru; Editing by Janane Venkatraman)
(([email protected]; +91 8921483410;))
Hyundai Motor doubles down on India with $5 billion investment
Hyundai to invest $5 billion in India by 2030
To launch 26 cars, including first hybrid and locally made EV
Shares rise 3% after investment announcement
Appoints Tarun Garg as CEO of Hyundai India
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;))
Hyundai to invest $5 billion in India by 2030
To launch 26 cars, including first hybrid and locally made EV
Shares rise 3% after investment announcement
Appoints Tarun Garg as CEO of Hyundai India
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;))
India's retail auto sales get tax, festival boost in September
Adds details paragraph 2 onwards
Oct 7 (Reuters) - Indian dealers' auto sales grew 5.2% year-on-year in September, with upbeat growth across two-wheelers and passenger vehicles, as tax cuts boosted demand during the festive season, the Federation of Automobile Dealers Associations said on Tuesday.
While sales were muted in the first three weeks of September, they surged after September 22, when the revised goods and services tax rates took effect, the auto dealers association said.
Two-wheeler sales climbed 6.5% from a year earlier, while passenger vehicle sales grew 5.8%.
Dealers posted record high sales during the nine-day Navratri festival, the association said, with a 34% year-on-year jump during the period, as a wave of new customers entered showrooms and existing ones upgraded their vehicles, taking advantage of lower taxes and festive schemes.
The auto dealers body expects an above-normal monsoon, strong harvest, and steady lending rates to boost purchasing power of consumers, driving demand.
It also expects "peak sales" during the Diwali festival in October, when Indians typically tend to make high-value purchases.
(Reporting by Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala and Ronojoy Mazumdar)
(([email protected]; 8800437922;))
Adds details paragraph 2 onwards
Oct 7 (Reuters) - Indian dealers' auto sales grew 5.2% year-on-year in September, with upbeat growth across two-wheelers and passenger vehicles, as tax cuts boosted demand during the festive season, the Federation of Automobile Dealers Associations said on Tuesday.
While sales were muted in the first three weeks of September, they surged after September 22, when the revised goods and services tax rates took effect, the auto dealers association said.
Two-wheeler sales climbed 6.5% from a year earlier, while passenger vehicle sales grew 5.8%.
Dealers posted record high sales during the nine-day Navratri festival, the association said, with a 34% year-on-year jump during the period, as a wave of new customers entered showrooms and existing ones upgraded their vehicles, taking advantage of lower taxes and festive schemes.
The auto dealers body expects an above-normal monsoon, strong harvest, and steady lending rates to boost purchasing power of consumers, driving demand.
It also expects "peak sales" during the Diwali festival in October, when Indians typically tend to make high-value purchases.
(Reporting by Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala and Ronojoy Mazumdar)
(([email protected]; 8800437922;))
India's Maruti set to snap its longest weekly winning run in over 8 years
** Shares of Maruti Suzuki MRTI.NS are down 1% to 15797 rupees
** Automaker is set to snap 8 week winning streak - its longest in more than eight years
** MRTI is down 3% for the week, and is the biggest loser on the benchmark Nifty 50 Index .NSEI
** The 8 week winning run, where the stock grew over 30%, was driven by government tax cuts
** India's recent announcement of reduced goods and services tax (GST) rates on various items, including small cars, a move analysts say will benefit MRTI
** Stock is up 46% so far in 2025 and is the top gainer on .NSEI which has risen 5% YTD
(Reporting by Nishit Navin in Bengaluru)
** Shares of Maruti Suzuki MRTI.NS are down 1% to 15797 rupees
** Automaker is set to snap 8 week winning streak - its longest in more than eight years
** MRTI is down 3% for the week, and is the biggest loser on the benchmark Nifty 50 Index .NSEI
** The 8 week winning run, where the stock grew over 30%, was driven by government tax cuts
** India's recent announcement of reduced goods and services tax (GST) rates on various items, including small cars, a move analysts say will benefit MRTI
** Stock is up 46% so far in 2025 and is the top gainer on .NSEI which has risen 5% YTD
(Reporting by Nishit Navin in Bengaluru)
In an Indian hinterland town, hotels become Japanese havens for auto expats
Honda, Suzuki expansion into Indian town has hotels for expats thriving
Gujarat's alcohol ban means foreigners need permits to drink
Japanese investment in India up 27% from four years ago
By Aditi Shah
VITHALAPUR, India, Oct 2 (Reuters) - In India's Gujarat, eating meat or seafood is frowned upon, but in the state's dusty industrial town of Vithalapur, hotels with names like Osaka Palace are churning out ramen and tempura - all to please the Japanese auto engineers and managers who now reside in them.
The transformation of Vithalapur's farmlands, which lie 75 km (46 miles) east of the state capital of Gandhinagar, owes much to increased foreign investment in Indian manufacturing - one of Prime Minister Narendra Modi's key policy planks.
Honda's 7267.T motorcycle unit first started production in Vithalapur nearly a decade ago, while Suzuki 7269.T has an eight-year-old plant that started rolling out its first electric cars in August. A bevy of auto-related suppliers and other industrial Japanese companies have also set up shop.
Direct investment from Japan in India hit $2.5 billion for the year ended March 31, an increase of 27% from four years ago, government data shows, with much of it going towards the auto and electronics sectors.
Not far from Vithalapur's factories, Mizuki Ryokan and Midori are among half a dozen highway hotels that are thriving, home to Japanese staff now in India on multi-year contracts. Such has been the town's growth that Hyatt H.N is set to open a 108-room property this year.
But coming to Gujarat, Modi's home state, can pose a major cultural shock for many Japanese. Many Gujaratis are very strict about practicing vegetarianism due to Jain and Hindu religious and cultural beliefs. The state is also one of a small number of Indian states that ban alcohol, making only a few tightly regulated exceptions for foreigners.
Early efforts by Japanese expats to acclimate in regular housing in nearby cities did not pan out, with the lack of easy access to meat and fish often proving too much.
The 110-room AJU Imperial, where AJU stands for All Japanese Utility, seeks to provide home comforts like signage in Japanese, sushi made with fish imported from as far as Australia and Toto 5332.T washlet toilets - an expensive indulgence by Indian standards.
"We wanted to give people the comfort of place and food so they can focus on work," said Prakash Yadav, founder and managing director of the hotel, which hosts around 100 expats at any one time.
But the state's restrictions on alcohol consumption remain a challenge for expats, said Yadav.
To enjoy liquor, Gujarat requires foreigners and hotels to obtain special government permits, which are issued after a lengthy process and need to be renewed often. Even then, the amount they can buy each month is rationed.
Yadav has been waiting for an alcohol permit since 2019 so he can set up a liquor store in his hotel.
"Until we get a license, guests have to drive three hours to Ahmedabad city to buy their monthly stock."
(Reporting by Aditi Shah; Additional reporting by Aditya Kalra in New Delhi and Daniel Leussink in Tokyo; Editing by Edwina Gibbs)
(([email protected]; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))
Honda, Suzuki expansion into Indian town has hotels for expats thriving
Gujarat's alcohol ban means foreigners need permits to drink
Japanese investment in India up 27% from four years ago
By Aditi Shah
VITHALAPUR, India, Oct 2 (Reuters) - In India's Gujarat, eating meat or seafood is frowned upon, but in the state's dusty industrial town of Vithalapur, hotels with names like Osaka Palace are churning out ramen and tempura - all to please the Japanese auto engineers and managers who now reside in them.
The transformation of Vithalapur's farmlands, which lie 75 km (46 miles) east of the state capital of Gandhinagar, owes much to increased foreign investment in Indian manufacturing - one of Prime Minister Narendra Modi's key policy planks.
Honda's 7267.T motorcycle unit first started production in Vithalapur nearly a decade ago, while Suzuki 7269.T has an eight-year-old plant that started rolling out its first electric cars in August. A bevy of auto-related suppliers and other industrial Japanese companies have also set up shop.
Direct investment from Japan in India hit $2.5 billion for the year ended March 31, an increase of 27% from four years ago, government data shows, with much of it going towards the auto and electronics sectors.
Not far from Vithalapur's factories, Mizuki Ryokan and Midori are among half a dozen highway hotels that are thriving, home to Japanese staff now in India on multi-year contracts. Such has been the town's growth that Hyatt H.N is set to open a 108-room property this year.
But coming to Gujarat, Modi's home state, can pose a major cultural shock for many Japanese. Many Gujaratis are very strict about practicing vegetarianism due to Jain and Hindu religious and cultural beliefs. The state is also one of a small number of Indian states that ban alcohol, making only a few tightly regulated exceptions for foreigners.
Early efforts by Japanese expats to acclimate in regular housing in nearby cities did not pan out, with the lack of easy access to meat and fish often proving too much.
The 110-room AJU Imperial, where AJU stands for All Japanese Utility, seeks to provide home comforts like signage in Japanese, sushi made with fish imported from as far as Australia and Toto 5332.T washlet toilets - an expensive indulgence by Indian standards.
"We wanted to give people the comfort of place and food so they can focus on work," said Prakash Yadav, founder and managing director of the hotel, which hosts around 100 expats at any one time.
But the state's restrictions on alcohol consumption remain a challenge for expats, said Yadav.
To enjoy liquor, Gujarat requires foreigners and hotels to obtain special government permits, which are issued after a lengthy process and need to be renewed often. Even then, the amount they can buy each month is rationed.
Yadav has been waiting for an alcohol permit since 2019 so he can set up a liquor store in his hotel.
"Until we get a license, guests have to drive three hours to Ahmedabad city to buy their monthly stock."
(Reporting by Aditi Shah; Additional reporting by Aditya Kalra in New Delhi and Daniel Leussink in Tokyo; Editing by Edwina Gibbs)
(([email protected]; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))
India's tax cut boosts automaker Mahindra's SUV sales to dealers
Oct 1 (Reuters) - Indian automaker Mahindra & Mahindra MAHM.NS said on Wednesday that its sales of sports utility vehicles to dealers in September rose 10% year-on-year, after a fall in August, helped by consumption tax cuts and festive demand.
Last month, India’s federal government slashed the goods and services tax (GST) on SUVs with engine capacities above 1500 cc to 40% from an effective rate of 50%, as part of an effort to boost consumption and support growth amid headwinds from trade tensions with U.S.
The revision eased the burden on premium models like Mahindra’s Scorpio and XUV700.
Mahindra said SUV sales during the first nine days of the auspicious Navratri festival, which ran from September 22 to October 1, rose over 60% year-on-year.
The festival months of September to October are also when consumer spending across sectors, from automobiles and electronics to FMCG, rises.
In August, the automaker reported its first decline in SUV sales to dealers in over three years as it awaited the government's decision to lower goods and services taxes.
Market leader Maruti Suzuki MRTI.NS, along with Hyundai India and Tata Motors TAMO.NS, are yet to report their September sales figures.
(Reporting by Yagnoseni Das in Bengaluru)
(([email protected];))
Oct 1 (Reuters) - Indian automaker Mahindra & Mahindra MAHM.NS said on Wednesday that its sales of sports utility vehicles to dealers in September rose 10% year-on-year, after a fall in August, helped by consumption tax cuts and festive demand.
Last month, India’s federal government slashed the goods and services tax (GST) on SUVs with engine capacities above 1500 cc to 40% from an effective rate of 50%, as part of an effort to boost consumption and support growth amid headwinds from trade tensions with U.S.
The revision eased the burden on premium models like Mahindra’s Scorpio and XUV700.
Mahindra said SUV sales during the first nine days of the auspicious Navratri festival, which ran from September 22 to October 1, rose over 60% year-on-year.
The festival months of September to October are also when consumer spending across sectors, from automobiles and electronics to FMCG, rises.
In August, the automaker reported its first decline in SUV sales to dealers in over three years as it awaited the government's decision to lower goods and services taxes.
Market leader Maruti Suzuki MRTI.NS, along with Hyundai India and Tata Motors TAMO.NS, are yet to report their September sales figures.
(Reporting by Yagnoseni Das in Bengaluru)
(([email protected];))
India proposes relaxing fuel efficiency norms for small cars boosting Suzuki shares
By Aditi Shah
NEW DELHI, Sept 26 (Reuters) - India has proposed relaxing stringent fuel efficiency norms for small cars, according to a draft of the new rules made public late on Thursday, sending shares of small carmaker Maruti Suzuki MRTI.NS to a record high.
Under current Corporate Average Fuel Efficiency norms, the quantity of permissible carbon dioxide emissions is linked to the vehicle's weight and applies to all passenger cars weighing less than 3,500 kg (7,716 lb).
The Bureau of Energy Efficiency has proposed some leniency for petrol cars weighing 909 kg or less and measuring under four meters (13.12 feet) in length, in a departure from an industry consensus that did not differentiate on the basis of weight.
"Considering the limited potential for efficiency improvements" in small petrol cars, they will be eligible to claim additional carbon saving benefits, it said in the draft.
Shares in Maruti rose as much as 1.02% to a record high of 16,435 rupees ($185.3) on Friday as it dominates the country's small car segment with popular models like Alto-K10, Wagon-R, S-Presso, Celerio and Ignis that stand to gain.
Fuel efficiency rules are designed to incentivise higher sales of low-emission car models, mainly electric, if companies want to avoid paying penalties for non-compliance. Relaxing the limits for small cars means less pressure to electrify them.
The leniency for small cars comes despite pushback from some carmakers who told Reuters in June that any preferential treatment could be seen as giving Maruti an unfair advantage in the world's third-largest car market.
All stakeholders have been asked to submit their comments within 21 days, after which the rules will be finalised and come into force for a five-year period starting April 1, 2027.
(Reporting by Aditi Shah; Editing by Saad Sayeed)
(([email protected]; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))
By Aditi Shah
NEW DELHI, Sept 26 (Reuters) - India has proposed relaxing stringent fuel efficiency norms for small cars, according to a draft of the new rules made public late on Thursday, sending shares of small carmaker Maruti Suzuki MRTI.NS to a record high.
Under current Corporate Average Fuel Efficiency norms, the quantity of permissible carbon dioxide emissions is linked to the vehicle's weight and applies to all passenger cars weighing less than 3,500 kg (7,716 lb).
The Bureau of Energy Efficiency has proposed some leniency for petrol cars weighing 909 kg or less and measuring under four meters (13.12 feet) in length, in a departure from an industry consensus that did not differentiate on the basis of weight.
"Considering the limited potential for efficiency improvements" in small petrol cars, they will be eligible to claim additional carbon saving benefits, it said in the draft.
Shares in Maruti rose as much as 1.02% to a record high of 16,435 rupees ($185.3) on Friday as it dominates the country's small car segment with popular models like Alto-K10, Wagon-R, S-Presso, Celerio and Ignis that stand to gain.
Fuel efficiency rules are designed to incentivise higher sales of low-emission car models, mainly electric, if companies want to avoid paying penalties for non-compliance. Relaxing the limits for small cars means less pressure to electrify them.
The leniency for small cars comes despite pushback from some carmakers who told Reuters in June that any preferential treatment could be seen as giving Maruti an unfair advantage in the world's third-largest car market.
All stakeholders have been asked to submit their comments within 21 days, after which the rules will be finalised and come into force for a five-year period starting April 1, 2027.
(Reporting by Aditi Shah; Editing by Saad Sayeed)
(([email protected]; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))
India's Maruti Suzuki poised for longest weekly winning streak in two years
** Shares of Maruti Suzuki MRTI.NS rise as much as 1.5% on Friday to a record high of 16060 rupees
** The auto-maker is set to rise for a seventh straight week, its longest such run in two years
** Over the past seven weeks, MRTI has surged nearly 30%.
** The rally has been supported by the Indian government’s recent announcement of reduced goods and services tax (GST) rates on various items, including small cars, a move analysts say will benefit MRTI
** On Thursday, the automaker announced price cuts aligned with the lower tax rates
** Avg rating of 38 analysts covering the stock is "buy", their median PT is 14616.50 rupees - data compiled by LSEG
** YTD, MRTI is up 46%, outperforming the Nifty Auto index .NIFTYAUTO, which has risen 20% in 2025.
(Reporting by Nishit Navin in Bengaluru)
** Shares of Maruti Suzuki MRTI.NS rise as much as 1.5% on Friday to a record high of 16060 rupees
** The auto-maker is set to rise for a seventh straight week, its longest such run in two years
** Over the past seven weeks, MRTI has surged nearly 30%.
** The rally has been supported by the Indian government’s recent announcement of reduced goods and services tax (GST) rates on various items, including small cars, a move analysts say will benefit MRTI
** On Thursday, the automaker announced price cuts aligned with the lower tax rates
** Avg rating of 38 analysts covering the stock is "buy", their median PT is 14616.50 rupees - data compiled by LSEG
** YTD, MRTI is up 46%, outperforming the Nifty Auto index .NIFTYAUTO, which has risen 20% in 2025.
(Reporting by Nishit Navin in Bengaluru)
India Auto Industry Body SIAM Says August Total Domestic Sales 321,840 Units
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];;))
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];;))
Citi sees three tailwinds driving India car demand, prefers Maruti
** Citi calls passenger vehicles its top auto pick, betting on "trifecta of tailwinds" - lower income tax, GST and interest rates
** Brokerage expects "long-awaited uptick in PV demand" from policy changes
** Lifts FY26 car sales growth forecast to 2.1% from 1.3%, with higher FY27-FY28 estimates
** Maruti Suzuki MRTI.NS is top pick, followed by Mahindra & Mahindra MAHM.NS and Hyundai India HYUN.NS
** Hikes PTs: MRTI to 17,500 from 14,400 rupees; MAHM to 4,170 from 3,700 rupees; HYUN to 2,900 from 2,400 rupees
** * MRTI to benefit from small car uptick where lower tax impact is highest; MAHM, HYUN gain from reduced SUV rates - Citi
** All firms rated "buy" on average - data compiled by LSEG
** YTD, MRTI, HYUN both up 41%; MAHM gains 19%; Nifty auto .NIFTYAUTO up 18%; benchmark Nifty 50 .NSEI up 6%
(Reporting by Nandan Mandayam in Bengaluru)
(([email protected]; Mobile: +91 9591011727;))
** Citi calls passenger vehicles its top auto pick, betting on "trifecta of tailwinds" - lower income tax, GST and interest rates
** Brokerage expects "long-awaited uptick in PV demand" from policy changes
** Lifts FY26 car sales growth forecast to 2.1% from 1.3%, with higher FY27-FY28 estimates
** Maruti Suzuki MRTI.NS is top pick, followed by Mahindra & Mahindra MAHM.NS and Hyundai India HYUN.NS
** Hikes PTs: MRTI to 17,500 from 14,400 rupees; MAHM to 4,170 from 3,700 rupees; HYUN to 2,900 from 2,400 rupees
** * MRTI to benefit from small car uptick where lower tax impact is highest; MAHM, HYUN gain from reduced SUV rates - Citi
** All firms rated "buy" on average - data compiled by LSEG
** YTD, MRTI, HYUN both up 41%; MAHM gains 19%; Nifty auto .NIFTYAUTO up 18%; benchmark Nifty 50 .NSEI up 6%
(Reporting by Nandan Mandayam in Bengaluru)
(([email protected]; Mobile: +91 9591011727;))
BREAKINGVIEWS-India’s car tax cuts sap energy from EV ambitions
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.
India's carmakers rev up on tax reform https://www.reuters.com/graphics/BRV-BRV/lgvdagrrwpo/chart.png
Electric cars are gaining ground in India https://www.reuters.com/graphics/BRV-BRV/zgpozlqogvd/chart.png
(Editing by Antony Currie; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on DUTTA/[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.
India's carmakers rev up on tax reform https://www.reuters.com/graphics/BRV-BRV/lgvdagrrwpo/chart.png
Electric cars are gaining ground in India https://www.reuters.com/graphics/BRV-BRV/zgpozlqogvd/chart.png
(Editing by Antony Currie; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))
India File: GST 2.0 shakes up weddings, wardrobes and wallets
India tax cuts to boost festive season car sales, dealers body says
QUOTES-Reactions after India cuts consumption tax on hundreds of items
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:
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.
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... 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
"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... 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 ... should directly boost demand, help traders and businesses see higher volumes, and may even favourably impact next quarter's earnings... 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... 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
"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."
NITIN RAO, CEO, INCRED WEALTH
" (I am ) positive this will play out, though a small concern remains where recent measures like the rate cuts and budgetary measures taken on reduced taxes have not created the necessary consumption boosters."
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.
"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."
RAJNEESH KUMAR, CHIEF CORPORATE AFFAIRS OFFICER, FLIPKART GROUP
"By lowering input costs for farmers, simplifying compliance for MSMEs 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."
SHEETAL ARORA, CEO, MANKIND PHARMA
"By removing GST on lifesaving rare-disease and oncology therapies and reducing it on essential medicines and diagnostics, the government has signalled that affordability and innovation can go hand in hand."
AMIT PAITHANKAR, CEO OF WAAREE ENERGIES
"The reduction will lower project costs and accelerate the capacity addition needed to meet India’s clean energy targets."
ARNAB BANERJEE, MD & CEO, CEAT
"By addressing a long-standing demand of the industry, the Council has not only provided a boost to the automotive ecosystem but also created room for greater formalisation, compliance, and sustainable growth in the sector."
SHENU AGARWAL, MD & CEO, ASHOK LEYLAND
"The specific relief for the commercial vehicle industry is especially welcome. On one hand, it will spur freight traffic, and on the other, it will bring down the cost of buses and trucks."
AASIF MALBARI, CHIEF FINANCIAL OFFICER, GODREJ CONSUMER PRODUCTS LTD
"This is a positive trigger for demand and a strong driver of volume growth. This move will ultimately contribute to overall economic momentum. We are fully committed to ensuring that the GST rates reduction benefits are passed on to consumers."
VENKATRAM MAMILLAPALLE, MANAGING DIRECTOR, RENAULT INDIA
"We believe the reform will accelerate rural and urban demand alike, boost manufacturing and contribute strongly to India's economic momentum."
UNSOO KIM, MANAGING DIRECTOR, HYUNDAI MOTOR INDIA
"The GST overhaul will directly benefit the automotive sector. The announced reforms align seamlessly with the government's commitment to Viksit Bharat and the Make in India initiative, encouraging domestic manufacturing and boosting demand across both urban and rural markets."
(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/;))
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:
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.
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... 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
"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... 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 ... should directly boost demand, help traders and businesses see higher volumes, and may even favourably impact next quarter's earnings... 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... 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
"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."
NITIN RAO, CEO, INCRED WEALTH
" (I am ) positive this will play out, though a small concern remains where recent measures like the rate cuts and budgetary measures taken on reduced taxes have not created the necessary consumption boosters."
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.
"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."
RAJNEESH KUMAR, CHIEF CORPORATE AFFAIRS OFFICER, FLIPKART GROUP
"By lowering input costs for farmers, simplifying compliance for MSMEs 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."
SHEETAL ARORA, CEO, MANKIND PHARMA
"By removing GST on lifesaving rare-disease and oncology therapies and reducing it on essential medicines and diagnostics, the government has signalled that affordability and innovation can go hand in hand."
AMIT PAITHANKAR, CEO OF WAAREE ENERGIES
"The reduction will lower project costs and accelerate the capacity addition needed to meet India’s clean energy targets."
ARNAB BANERJEE, MD & CEO, CEAT
"By addressing a long-standing demand of the industry, the Council has not only provided a boost to the automotive ecosystem but also created room for greater formalisation, compliance, and sustainable growth in the sector."
SHENU AGARWAL, MD & CEO, ASHOK LEYLAND
"The specific relief for the commercial vehicle industry is especially welcome. On one hand, it will spur freight traffic, and on the other, it will bring down the cost of buses and trucks."
AASIF MALBARI, CHIEF FINANCIAL OFFICER, GODREJ CONSUMER PRODUCTS LTD
"This is a positive trigger for demand and a strong driver of volume growth. This move will ultimately contribute to overall economic momentum. We are fully committed to ensuring that the GST rates reduction benefits are passed on to consumers."
VENKATRAM MAMILLAPALLE, MANAGING DIRECTOR, RENAULT INDIA
"We believe the reform will accelerate rural and urban demand alike, boost manufacturing and contribute strongly to India's economic momentum."
UNSOO KIM, MANAGING DIRECTOR, HYUNDAI MOTOR INDIA
"The GST overhaul will directly benefit the automotive sector. The announced reforms align seamlessly with the government's commitment to Viksit Bharat and the Make in India initiative, encouraging domestic manufacturing and boosting demand across both urban and rural markets."
(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/;))
Indian ministers set to meet on landmark consumer tax overhaul
Federal, state finance ministers to meet on Sept 3 and Sept 4
Ministers to decide on lower taxes for more than 400 items
Set to discuss tax increases on high-end goods
By Nikunj Ohri
NEW DELHI, Sept 3 (Reuters) - Indian state and federal ministers will meet for two days from Wednesday to weigh the biggest cuts to consumption tax in eight years, aimed at spurring domestic demand in the face of economic headwinds from U.S. tariffs.
Coupled with cuts in personal tax unveiled in February, the cuts in the Goods and Services Tax (GST) are expected to boost consumption in the South Asian nation, whose economy grew at an unexpectedly higher pace of 7.8% in the quarter to June.
A panel on the tax, headed by Finance Minister Nirmala Sitharaman with ministers from all Indian states, will decide on a plan to cut the tax on more than 400 items, ranging from hair oil to small cars.
"With U.S. tariffs clouding exports in textiles, autos and possibly pharmaceuticals, India must pivot towards domestic consumption as the primary growth engine," said Manoj Mishra, a partner at Grant Thornton Bharat LLP.
The move is expected to boost sales of FMCG firms such as Hindustan Unilever and Godrej Industries, and consumer electronics companies such as Samsung Electronics 005930.KS, LG Electronics 066570.KS and Sony 6758.T.
Among automakers Maruti, Toyota Motor 7203.T and Suzuki Motor 7269.T are expected to be big winners.
The rush to cut the tax was triggered by Prime Minister Narendra Modi's call for greater self-reliance, when he vowed to lower GST by October, aiming to counter the U.S. tariffs of up to 50%.
TWO RATES INSTEAD OF FOUR
The ministers will consider a two-rate structure of 5% and 18%, instead of four now, with additional tax bands of 12% and 28%. It will also consider a higher tax of 40% on some luxury and "sin" goods such as cigarettes.
The plan is to sweep into the 5% category all items of daily use now in the category of 12%.
The panel will also consider lowering taxes on consumer items such as toothpaste and shampoo to 5% from 18%, and on small cars, air conditioners, and televisions to 18% from 28%.
Economists expect the cuts to cost $21 billion in revenue losses, with states set to lose more than the federal government.
While the states are broadly on board, there could be heated discussion on ways to make up their loss of revenue.
The panel is likely to discuss raising taxes on high end electric vehicles priced at more than 2 million rupees.
It will also consider raising tax to 18% from 12% on apparel priced above 2,500 rupees ($29), which would affect the premium offerings of Marks and Spencer MKS.L, Levi Strauss LEVI.N, and Zara.
Taxes on air travel in the premium and business classes could also go to 18% from 12%.
($1=87.5060 Indian rupees)
(Reporting by Nikunj Ohri; Editing by Clarence Fernandez)
(([email protected]; +91 90284 60730; Reuters Messaging: twitter.com/nikunj_ohri))
Federal, state finance ministers to meet on Sept 3 and Sept 4
Ministers to decide on lower taxes for more than 400 items
Set to discuss tax increases on high-end goods
By Nikunj Ohri
NEW DELHI, Sept 3 (Reuters) - Indian state and federal ministers will meet for two days from Wednesday to weigh the biggest cuts to consumption tax in eight years, aimed at spurring domestic demand in the face of economic headwinds from U.S. tariffs.
Coupled with cuts in personal tax unveiled in February, the cuts in the Goods and Services Tax (GST) are expected to boost consumption in the South Asian nation, whose economy grew at an unexpectedly higher pace of 7.8% in the quarter to June.
A panel on the tax, headed by Finance Minister Nirmala Sitharaman with ministers from all Indian states, will decide on a plan to cut the tax on more than 400 items, ranging from hair oil to small cars.
"With U.S. tariffs clouding exports in textiles, autos and possibly pharmaceuticals, India must pivot towards domestic consumption as the primary growth engine," said Manoj Mishra, a partner at Grant Thornton Bharat LLP.
The move is expected to boost sales of FMCG firms such as Hindustan Unilever and Godrej Industries, and consumer electronics companies such as Samsung Electronics 005930.KS, LG Electronics 066570.KS and Sony 6758.T.
Among automakers Maruti, Toyota Motor 7203.T and Suzuki Motor 7269.T are expected to be big winners.
The rush to cut the tax was triggered by Prime Minister Narendra Modi's call for greater self-reliance, when he vowed to lower GST by October, aiming to counter the U.S. tariffs of up to 50%.
TWO RATES INSTEAD OF FOUR
The ministers will consider a two-rate structure of 5% and 18%, instead of four now, with additional tax bands of 12% and 28%. It will also consider a higher tax of 40% on some luxury and "sin" goods such as cigarettes.
The plan is to sweep into the 5% category all items of daily use now in the category of 12%.
The panel will also consider lowering taxes on consumer items such as toothpaste and shampoo to 5% from 18%, and on small cars, air conditioners, and televisions to 18% from 28%.
Economists expect the cuts to cost $21 billion in revenue losses, with states set to lose more than the federal government.
While the states are broadly on board, there could be heated discussion on ways to make up their loss of revenue.
The panel is likely to discuss raising taxes on high end electric vehicles priced at more than 2 million rupees.
It will also consider raising tax to 18% from 12% on apparel priced above 2,500 rupees ($29), which would affect the premium offerings of Marks and Spencer MKS.L, Levi Strauss LEVI.N, and Zara.
Taxes on air travel in the premium and business classes could also go to 18% from 12%.
($1=87.5060 Indian rupees)
(Reporting by Nikunj Ohri; Editing by Clarence Fernandez)
(([email protected]; +91 90284 60730; Reuters Messaging: twitter.com/nikunj_ohri))
Indian carmaker Maruti Suzuki set for sharpest monthly gain in over 5 years
** Shares of Maruti Suzuki India MRTI.NS up ~17% in Aug so far, eyes sharpest monthly gain since April 2020
** MRTI flat for the day after gaining for five sessions in a row
** Since Prime Minister Narendra Modi said his government would simplify and lower goods and services taxes on various goods by October, carmaker's shares have risen for seven sessions out of nine
** Earlier this week, Japanese parent Suzuki Motor Corp 7269.T said it will invest $8 billion in India, started production of co's first EV, "e Vitara"
** Launch of e Vitara "should be a key catalyst for Maruti's export growth" said brokerage Investec in a note dated Aug 28, in which it reiterated "buy" call on MRTI
** Avg rating of 38 analysts covering the stock, including Investec, is "buy" - LSEG data
** YTD, stock has risen 36% vs 10% rise in Nifty auto sub-index .NIFTYAUTO
(Reporting by Hritam Mukherjee in Bengaluru)
(([email protected];))
** Shares of Maruti Suzuki India MRTI.NS up ~17% in Aug so far, eyes sharpest monthly gain since April 2020
** MRTI flat for the day after gaining for five sessions in a row
** Since Prime Minister Narendra Modi said his government would simplify and lower goods and services taxes on various goods by October, carmaker's shares have risen for seven sessions out of nine
** Earlier this week, Japanese parent Suzuki Motor Corp 7269.T said it will invest $8 billion in India, started production of co's first EV, "e Vitara"
** Launch of e Vitara "should be a key catalyst for Maruti's export growth" said brokerage Investec in a note dated Aug 28, in which it reiterated "buy" call on MRTI
** Avg rating of 38 analysts covering the stock, including Investec, is "buy" - LSEG data
** YTD, stock has risen 36% vs 10% rise in Nifty auto sub-index .NIFTYAUTO
(Reporting by Hritam Mukherjee in Bengaluru)
(([email protected];))
Maruti Suzuki Chair Says Lower Tax Rates On Cars Needed To Combat U.S. Tariff Impact On Indian Economy
Aug 28 (Reuters) - Maruti Suzuki India Chairman At AGM:
HOPEFUL THAT TAX RATE ON SMALL CARS WILL REDUCE TO 18%
LOWER TAX RATES ON CARS NEEDED WITH U.S. TARIFFS CAUSING DISRUPTION IN OTHER INDIAN INDUSTRIES
Further company coverage: MRTI.NS
(([email protected];))
Aug 28 (Reuters) - Maruti Suzuki India Chairman At AGM:
HOPEFUL THAT TAX RATE ON SMALL CARS WILL REDUCE TO 18%
LOWER TAX RATES ON CARS NEEDED WITH U.S. TARIFFS CAUSING DISRUPTION IN OTHER INDIAN INDUSTRIES
Further company coverage: MRTI.NS
(([email protected];))
Suzuki Motor Exec Says Company Will Invest 700 Billion Rupees In India Over Next 5-6 Years
Aug 26 (Reuters) - Suzuki Motor Corp Exec:
SUZUKI MOTOR EXEC: GUJARAT PLANT WITH CAPACITY OF 1 MILLION CARS IS SURE TO BECOME MAJOR PRODUCTION HUB
SUZUKI MOTOR EXEC: SUZUKI WILL INVEST 700 BILLION RUPEES IN INDIA OVER NEXT 5-6 YEARS
SUZUKI MOTOR EXEC: ACHIEVED MAJOR MILESTONE WITH START OF LITHIUM ION BATTERY CELLS PRODUCTION FOR OUR HYBRID CARS
Further company coverage: 7269.TMRTI.NS
(([email protected];))
Aug 26 (Reuters) - Suzuki Motor Corp Exec:
SUZUKI MOTOR EXEC: GUJARAT PLANT WITH CAPACITY OF 1 MILLION CARS IS SURE TO BECOME MAJOR PRODUCTION HUB
SUZUKI MOTOR EXEC: SUZUKI WILL INVEST 700 BILLION RUPEES IN INDIA OVER NEXT 5-6 YEARS
SUZUKI MOTOR EXEC: ACHIEVED MAJOR MILESTONE WITH START OF LITHIUM ION BATTERY CELLS PRODUCTION FOR OUR HYBRID CARS
Further company coverage: 7269.TMRTI.NS
(([email protected];))
India's tax restructuring a 'huge reform', will boost competitiveness, Maruti Suzuki chair says
Aug 18 (Reuters) - India's proposal to rationalise goods and services tax is a "huge reform", which is bound to have good outcomes, RC Bhargava, chairman of the country's top carmaker Maruti Suzuki MRTI.NS, told Reuters on Monday.
The restructuring will increase competitiveness of Indian products and the opening of trade borders will bring in the necessary competition, which will help expand the market and benefit customers, he said.
India's federal government has suggested lowering the goods and services tax on small cars to 18% from 28%, as part of its sweeping consumption tax cuts, Reuters reported on Monday, citing a government source.
(Reporting by reporting by Aditi Shah in New Delh; Writing by Kashish Tandon; Editing by Mrigank Dhaniwala)
(([email protected]; 8800437922;))
Aug 18 (Reuters) - India's proposal to rationalise goods and services tax is a "huge reform", which is bound to have good outcomes, RC Bhargava, chairman of the country's top carmaker Maruti Suzuki MRTI.NS, told Reuters on Monday.
The restructuring will increase competitiveness of Indian products and the opening of trade borders will bring in the necessary competition, which will help expand the market and benefit customers, he said.
India's federal government has suggested lowering the goods and services tax on small cars to 18% from 28%, as part of its sweeping consumption tax cuts, Reuters reported on Monday, citing a government source.
(Reporting by reporting by Aditi Shah in New Delh; Writing by Kashish Tandon; Editing by Mrigank Dhaniwala)
(([email protected]; 8800437922;))
Modi's tax overhaul to strain finances but boost image amid US trade tensions
Modi announces most major tax reform in eight years
Move could spur consumption but pinch tax revenues
Decision seen helping Modi in trade fight and local politics
New tax system seen making electronics, consumer goods cheaper
By Nikunj Ohri, Aftab Ahmed and Aditya Kalra
NEW DELHI, Aug 17 (Reuters) - Indian Prime Minister Narendra Modi's deepest tax cuts in eight years will strain government revenues but are winning praise from businesses and political pundits who say they will bolster his image in an ongoing trade fight with Washington.
In the biggest tax overhaul since 2017, Modi's government on Saturday announced sweeping changes to the complex goods and services tax (GST) regime which will make daily essentials and electronics cheaper from October, helping consumers and also companies like Nestle, Samsung and LG Electronics.
At the same time, in his Independence Day speech on Friday, Modi urged Indians to use more goods made domestically, echoing calls from many of his supporters to boycott U.S. products after Donald Trump hiked tariffs on imports from India to 50% as of August 27.
The tax cut plan comes with costs given GST is a major revenue generator. IDFC First Bank says the cuts will boost India's GDP by 0.6 percentage points over 12 months but will cost the state and federal government $20 billion annually.
But it will improve weak stock market sentiment and bring political dividends for Modi ahead of a critical state election in the eastern state of Bihar, said Rasheed Kidwai, a fellow at New Delhi-based Observer Research Foundation.
"GST reduction will impact everyone, unlike cuts to income tax, which is paid by only 3%-4% of the population. Modi is doing this as he is under a lot of pressure due to U.S. policies," said Kidwai.
"The move will also help the stock market, which is now politically important as it has a lot of retail investors."
India launched the major tax system in 2017 that subsumed local state taxes into the new, nationwide GST to unify its economy for the first time.
But the biggest tax reform since India's independence faced criticism for its complex design that taxes products and services under four slabs - 5%, 12%, 18% and 28%.
Last year, India said caramel popcorn would be taxed at 18% but the salted category at 5%, triggering criticism about a glaring example of GST's complexities.
Under the new system, India will abolish the 28% slab - which includes cars and electronics - and move nearly all of the items under the 12% category to the lower 5% slab, benefitting many more consumer items and packaged foods.
Government data shows the 28% and 12% tax slabs together garner 16% of India's annual GST revenue of roughly $250 billion last fiscal year.
'A BRIGHTER GIFT' AND POLITICS
Bihar is a key state politically and goes to the polls by November. A recent survey by the VoteVibe agency showed Modi's opposition has an edge largely because of a lack of jobs.
"Any tax cut has wide public appreciation. But of course, the timing is purely determined by political exigencies," said Dilip Cherian, a communications consultant and co-founder of Indian public relations firm Perfect Relations.
"It seems to be an indication of some mixture of frustration as well as recognition that there is a broad public pushback against high and crippling rates of taxation."
Modi's ruling Bharatiya Janata Party has seized on his tax announcement, posting on X that on the Hindu festival of lights, Diwali, "a brighter gift of simpler taxes and more savings is waiting for every Indian."
Modi has vowed to protect farmers, fishermen and cattlemen, following Trump's surprise tariff announcement on India, after trade talks between New Delhi and Washington collapsed over disagreement on opening India's vast farm and dairy sectors and stopping Russian oil purchases.
The latest round of trade talks between the two nations set for August 25-29 has also been called off.
($1 = 87.5080 Indian rupees)
(Reporting by Nikunj Ohri, Aftab Ahmed and Aditya Kalra; Editing by Sonali Paul)
((Email: [email protected]; X: @adityakalra;))
Modi announces most major tax reform in eight years
Move could spur consumption but pinch tax revenues
Decision seen helping Modi in trade fight and local politics
New tax system seen making electronics, consumer goods cheaper
By Nikunj Ohri, Aftab Ahmed and Aditya Kalra
NEW DELHI, Aug 17 (Reuters) - Indian Prime Minister Narendra Modi's deepest tax cuts in eight years will strain government revenues but are winning praise from businesses and political pundits who say they will bolster his image in an ongoing trade fight with Washington.
In the biggest tax overhaul since 2017, Modi's government on Saturday announced sweeping changes to the complex goods and services tax (GST) regime which will make daily essentials and electronics cheaper from October, helping consumers and also companies like Nestle, Samsung and LG Electronics.
At the same time, in his Independence Day speech on Friday, Modi urged Indians to use more goods made domestically, echoing calls from many of his supporters to boycott U.S. products after Donald Trump hiked tariffs on imports from India to 50% as of August 27.
The tax cut plan comes with costs given GST is a major revenue generator. IDFC First Bank says the cuts will boost India's GDP by 0.6 percentage points over 12 months but will cost the state and federal government $20 billion annually.
But it will improve weak stock market sentiment and bring political dividends for Modi ahead of a critical state election in the eastern state of Bihar, said Rasheed Kidwai, a fellow at New Delhi-based Observer Research Foundation.
"GST reduction will impact everyone, unlike cuts to income tax, which is paid by only 3%-4% of the population. Modi is doing this as he is under a lot of pressure due to U.S. policies," said Kidwai.
"The move will also help the stock market, which is now politically important as it has a lot of retail investors."
India launched the major tax system in 2017 that subsumed local state taxes into the new, nationwide GST to unify its economy for the first time.
But the biggest tax reform since India's independence faced criticism for its complex design that taxes products and services under four slabs - 5%, 12%, 18% and 28%.
Last year, India said caramel popcorn would be taxed at 18% but the salted category at 5%, triggering criticism about a glaring example of GST's complexities.
Under the new system, India will abolish the 28% slab - which includes cars and electronics - and move nearly all of the items under the 12% category to the lower 5% slab, benefitting many more consumer items and packaged foods.
Government data shows the 28% and 12% tax slabs together garner 16% of India's annual GST revenue of roughly $250 billion last fiscal year.
'A BRIGHTER GIFT' AND POLITICS
Bihar is a key state politically and goes to the polls by November. A recent survey by the VoteVibe agency showed Modi's opposition has an edge largely because of a lack of jobs.
"Any tax cut has wide public appreciation. But of course, the timing is purely determined by political exigencies," said Dilip Cherian, a communications consultant and co-founder of Indian public relations firm Perfect Relations.
"It seems to be an indication of some mixture of frustration as well as recognition that there is a broad public pushback against high and crippling rates of taxation."
Modi's ruling Bharatiya Janata Party has seized on his tax announcement, posting on X that on the Hindu festival of lights, Diwali, "a brighter gift of simpler taxes and more savings is waiting for every Indian."
Modi has vowed to protect farmers, fishermen and cattlemen, following Trump's surprise tariff announcement on India, after trade talks between New Delhi and Washington collapsed over disagreement on opening India's vast farm and dairy sectors and stopping Russian oil purchases.
The latest round of trade talks between the two nations set for August 25-29 has also been called off.
($1 = 87.5080 Indian rupees)
(Reporting by Nikunj Ohri, Aftab Ahmed and Aditya Kalra; Editing by Sonali Paul)
((Email: [email protected]; X: @adityakalra;))
Indian automaker Tata Motors' quarterly profit plunges as tariffs, slow sales bite
Tata Motors' profit drops 63%
JLR impacted by U.S. export halt in first quarter
Maintains JLR guidance despite tariff impact
Adds CFO comment in paragraph 5
By Chandini Monnappa and Nandan Mandayam
Aug 8 (Reuters) - Indian automaker Tata Motors TAMO.NS posted a 63% slump in quarterly profit on Friday, its fourth straight quarter of decline, as U.S. tariffs hurt businesses that were already reeling from weak sales.
U.S. duties wiped 254 million pounds ($341.33 million) off its quarterly earnings, the company said, adding that the tariffs and its planned model phase-out for its luxury Jaguar Land Rover cars, made predominantly in the United Kingdom, dealt a direct blow to profit and cash flow.
However, kept its JLR forecast unchanged, saying a U.S.-UK trade deal signed in May would sharply cut the tariff hit.
It had earlier reported a 11% fall in overseas sales at its luxury car unit due to the U.S. export halt and the phase-out of older Jaguar models.
Speaking to reporters in a post-earnings call, Chief Financial Officer P.B. Balaji also said that China's ban on rare earth magnets export had not affected the company, and added that it had de-risking plans in place to avoid any impact in the medium term.
Last week, rivals Hyundai Motor India HYUN.NS and Mahindra & Mahindra MAHM.NS had downplayed concerns over the export ban.
The magnets are key to EV motors and components in conventional cars such as power windows and speakers.
The company reported a profit of 39.24 billion rupees ($447.8 million) in the April-June quarter, down from a restated 105.14 billion rupees a year earlier that includes a 49.75-billion-rupee one-time gain.
Excluding the gain, profit was down 30.5%.
Quarterly revenue fell 2.5% from a year earlier as sales slowed, mirroring trends at Maruti Suzuki India MRTI.NS and Hyundai.
Tata Motors expects demand to remain challenging but aims to boost performance as clarity on tariffs emerges and festive demand picks up, Balaji said.
The results follow two major developments - Tata Motors' $4.36 billion acquisition of Italian truckmaker Iveco and JLR chief Adrian Mardell's exit.
Mardell, who had been with the company for more than three decades, revamped the Jaguar brand, delivered its highest profit in a decade and cut $6.6 billion in debt.
Earlier this month, Tata Motors named CFO Balaji as JLR's new CEO.
($1 = 87.6200 Indian rupees)
($1 = 0.7442 pounds)
(Reporting by Chandini Monnappa and Nandan Mandayam in Bengaluru; Editing by Janane Venkatraman)
(([email protected]; Mobile: +91 9591011727;))
Tata Motors' profit drops 63%
JLR impacted by U.S. export halt in first quarter
Maintains JLR guidance despite tariff impact
Adds CFO comment in paragraph 5
By Chandini Monnappa and Nandan Mandayam
Aug 8 (Reuters) - Indian automaker Tata Motors TAMO.NS posted a 63% slump in quarterly profit on Friday, its fourth straight quarter of decline, as U.S. tariffs hurt businesses that were already reeling from weak sales.
U.S. duties wiped 254 million pounds ($341.33 million) off its quarterly earnings, the company said, adding that the tariffs and its planned model phase-out for its luxury Jaguar Land Rover cars, made predominantly in the United Kingdom, dealt a direct blow to profit and cash flow.
However, kept its JLR forecast unchanged, saying a U.S.-UK trade deal signed in May would sharply cut the tariff hit.
It had earlier reported a 11% fall in overseas sales at its luxury car unit due to the U.S. export halt and the phase-out of older Jaguar models.
Speaking to reporters in a post-earnings call, Chief Financial Officer P.B. Balaji also said that China's ban on rare earth magnets export had not affected the company, and added that it had de-risking plans in place to avoid any impact in the medium term.
Last week, rivals Hyundai Motor India HYUN.NS and Mahindra & Mahindra MAHM.NS had downplayed concerns over the export ban.
The magnets are key to EV motors and components in conventional cars such as power windows and speakers.
The company reported a profit of 39.24 billion rupees ($447.8 million) in the April-June quarter, down from a restated 105.14 billion rupees a year earlier that includes a 49.75-billion-rupee one-time gain.
Excluding the gain, profit was down 30.5%.
Quarterly revenue fell 2.5% from a year earlier as sales slowed, mirroring trends at Maruti Suzuki India MRTI.NS and Hyundai.
Tata Motors expects demand to remain challenging but aims to boost performance as clarity on tariffs emerges and festive demand picks up, Balaji said.
The results follow two major developments - Tata Motors' $4.36 billion acquisition of Italian truckmaker Iveco and JLR chief Adrian Mardell's exit.
Mardell, who had been with the company for more than three decades, revamped the Jaguar brand, delivered its highest profit in a decade and cut $6.6 billion in debt.
Earlier this month, Tata Motors named CFO Balaji as JLR's new CEO.
($1 = 87.6200 Indian rupees)
($1 = 0.7442 pounds)
(Reporting by Chandini Monnappa and Nandan Mandayam in Bengaluru; Editing by Janane Venkatraman)
(([email protected]; Mobile: +91 9591011727;))
Indian auto dealers hopeful ahead of festive season, US tariff fears persist
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/;))
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/;))
REFILE-Indian automaker Mahindra's SUV sales to dealers jump 20% in July
Corrects typographical error in headline
Aug 1 (Reuters) - Indian automaker Mahindra & Mahindra MAHM.NS said on Friday its sales of sports utility vehicles to dealers rose 20% year-on-year in July, supported by new launches and deliveries of electric SUVs.
Mahindra has been beating its peers in terms of sales growth, helped by successful launches that have drawn customers from rivals such as Hyundai India HYUN.NS and Tata Motors TAMO.NS.
Market leader Maruti Suzuki MRTI.NS and rivals Hyundai India and Tata Motors are yet to report their sales numbers.
(Reporting by Meenakshi Maidas in Bengaluru; Editing by Mrigank Dhaniwala)
(([email protected]; +91 8921483410;))
Corrects typographical error in headline
Aug 1 (Reuters) - Indian automaker Mahindra & Mahindra MAHM.NS said on Friday its sales of sports utility vehicles to dealers rose 20% year-on-year in July, supported by new launches and deliveries of electric SUVs.
Mahindra has been beating its peers in terms of sales growth, helped by successful launches that have drawn customers from rivals such as Hyundai India HYUN.NS and Tata Motors TAMO.NS.
Market leader Maruti Suzuki MRTI.NS and rivals Hyundai India and Tata Motors are yet to report their sales numbers.
(Reporting by Meenakshi Maidas in Bengaluru; Editing by Mrigank Dhaniwala)
(([email protected]; +91 8921483410;))
PREVIEW- India's Maruti Suzuki marginally lower ahead of results
** India's largest carmaker Maruti Suzuki MRTI.NS trading ~0.5% lower ahead of Q1 results
** Analysts expect the company to report a nearly 15% y/y decline in standalone profit
** Domestic sales at the company, owned by Japan's Suzuki Motor 7269.T, declined 6% during the quarter, sales data shows, led by a 10% decline in small car dispatches
** Overall sales rose 1.1%, with a 37% jump in exports cushioning the impact of domestic decline
** Bob Capital Markets said it expects margins to be flat as the company has undertaken two price hikes to pass on commodity cost increases
** Adds, domestic volumes revival expected to be slow due to weakness in small cars segment
** Reuters reported in June that Maruti Suzuki has cut near-term production targets for its maiden electric vehicle, the e-Vitara, by two-thirds because of rare earth shortages from China's export curbs
(Reporting by Ananta Agarwal in Bengaluru)
** India's largest carmaker Maruti Suzuki MRTI.NS trading ~0.5% lower ahead of Q1 results
** Analysts expect the company to report a nearly 15% y/y decline in standalone profit
** Domestic sales at the company, owned by Japan's Suzuki Motor 7269.T, declined 6% during the quarter, sales data shows, led by a 10% decline in small car dispatches
** Overall sales rose 1.1%, with a 37% jump in exports cushioning the impact of domestic decline
** Bob Capital Markets said it expects margins to be flat as the company has undertaken two price hikes to pass on commodity cost increases
** Adds, domestic volumes revival expected to be slow due to weakness in small cars segment
** Reuters reported in June that Maruti Suzuki has cut near-term production targets for its maiden electric vehicle, the e-Vitara, by two-thirds because of rare earth shortages from China's export curbs
(Reporting by Ananta Agarwal in Bengaluru)
Maruti Suzuki Standardizes 6 Airbags In Fronx
July 25 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:
MARUTI SUZUKI - STANDARDIZATION OF 6 AIRBAGS IN FRONX
MARUTI SUZUKI - AVERAGE PRICE INCREASE OF 0.5% IN FRONX
MARUTI SUZUKI - PRICE INCREASE WILL COME INTO EFFECT FROM 25TH JULY 2025
Source text: ID:nBSE8LxW0c
Further company coverage: MRTI.NS
(([email protected];;))
July 25 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:
MARUTI SUZUKI - STANDARDIZATION OF 6 AIRBAGS IN FRONX
MARUTI SUZUKI - AVERAGE PRICE INCREASE OF 0.5% IN FRONX
MARUTI SUZUKI - PRICE INCREASE WILL COME INTO EFFECT FROM 25TH JULY 2025
Source text: ID:nBSE8LxW0c
Further company coverage: MRTI.NS
(([email protected];;))
Maruti Suzuki Introduces 6 Airbags In XL6, Price Increase Up To 0.8%
July 23 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:
MARUTI SUZUKI - INTRODUCTION OF 6 AIRBAGS IN XL6
MARUTI SUZUKI - PRICE INCREASE UP TO 0.8% IN XL6
MARUTI SUZUKI - PRICE INCREASE WILL COME INTO EFFECT FROM JULY 23, 2025
Source text: ID:nBSE9XZpHV
Further company coverage: MRTI.NS
(([email protected];;))
July 23 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:
MARUTI SUZUKI - INTRODUCTION OF 6 AIRBAGS IN XL6
MARUTI SUZUKI - PRICE INCREASE UP TO 0.8% IN XL6
MARUTI SUZUKI - PRICE INCREASE WILL COME INTO EFFECT FROM JULY 23, 2025
Source text: ID:nBSE9XZpHV
Further company coverage: MRTI.NS
(([email protected];;))
Maruti Suzuki Annpunces Standardization Of 6 Airbags In Ertiga & Baleno
July 16 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:
MARUTI SUZUKI - STANDARDIZATION OF 6 AIRBASS IN ERTIEA & BALENO
MARUTI SUZUKI - EX SHOWROOM PRICE INCREASE OF 1.4% ON ERTIGA AND 0.5% ON BALENO
Source text: ID:nBSE8S7vGk
Further company coverage: MRTI.NS
(([email protected];))
July 16 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:
MARUTI SUZUKI - STANDARDIZATION OF 6 AIRBASS IN ERTIEA & BALENO
MARUTI SUZUKI - EX SHOWROOM PRICE INCREASE OF 1.4% ON ERTIGA AND 0.5% ON BALENO
Source text: ID:nBSE8S7vGk
Further company coverage: MRTI.NS
(([email protected];))
Events:
Dividend
Dividend
Dividend
Dividend
Dividend
Dividend
Dividend
Dividend
Dividend
Dividend
Dividend
Dividend
More Large Cap Ideas
See similar 'Large' cap companies with recent activity
Promoter Buying
Companies where the promoters are bullish
Capex
Companies investing on expansion
Superstar Investor
Companies where well known investors have invested
Popular questions
-
Business
-
Financials
-
Share Price
-
Shareholdings
What does Maruti Suzuki do?
Maruti Suzuki India is engaged in the business of manufacturing and sale of passenger vehicles in India. Making a small beginning with the iconic Maruti 800 car, Maruti Suzuki today has a vast portfolio of many car models with large number of variants. Maruti Suzuki’s product range extends from entry level small cars like Alto 800, Alto K10 to the luxury sedan Ciaz. Other activities include facilitation of pre-owned car sales fleet management, car financing. The Company has manufacturing facilities in Gurgaon and Manesar in Haryana and a state of the art R&D centre in Rohtak, Haryana.
Who are the competitors of Maruti Suzuki?
Maruti Suzuki major competitors are Mahindra & Mahindra, Tata MotorsPassenger, Hindustan Motors. Market Cap of Maruti Suzuki is ₹5,02,423 Crs. While the median market cap of its peers are ₹1,33,392 Crs.
Is Maruti Suzuki financially stable compared to its competitors?
Maruti Suzuki seems to be financially stable compared to its competitors. The probability of it going bankrupt or facing a financial crunch seem to be lower than its immediate competitors.
Does Maruti Suzuki pay decent dividends?
The company seems to be paying a very low dividend. Investors need to see where the company is allocating its profits. Maruti Suzuki latest dividend payout ratio is 29.27% and 3yr average dividend payout ratio is 30.88%
How has Maruti Suzuki allocated its funds?
Companies resources are allocated to majorly productive assets like Plant & Machinery
How strong is Maruti Suzuki balance sheet?
Balance sheet of Maruti Suzuki is strong. But short term working capital might become an issue for this company.
Is the profitablity of Maruti Suzuki improving?
Yes, profit is increasing. The profit of Maruti Suzuki is ₹14,538 Crs for TTM, ₹14,500 Crs for Mar 2025 and ₹13,488 Crs for Mar 2024.
Is the debt of Maruti Suzuki increasing or decreasing?
Yes, The net debt of Maruti Suzuki is increasing. Latest net debt of Maruti Suzuki is -₹668.5 Crs as of Sep-25. This is greater than Mar-25 when it was -₹1,105.4 Crs.
Is Maruti Suzuki stock expensive?
Maruti Suzuki is not expensive. Latest PE of Maruti Suzuki is 33.99, while 3 year average PE is 39.44. Also latest EV/EBITDA of Maruti Suzuki is 25.56 while 3yr average is 27.47.
Has the share price of Maruti Suzuki grown faster than its competition?
Maruti Suzuki has given better returns compared to its competitors. Maruti Suzuki has grown at ~13.16% over the last 10yrs while peers have grown at a median rate of 9.69%
Is the promoter bullish about Maruti Suzuki?
Promoters stake in the company seems stable, and we need to go through filings and allocation of resources to gauge promoter bullishness. Latest quarter promoter holding in Maruti Suzuki is 58.28% and last quarter promoter holding is 58.28%.
Are mutual funds buying/selling Maruti Suzuki?
The mutual fund holding of Maruti Suzuki is decreasing. The current mutual fund holding in Maruti Suzuki is 14.6% while previous quarter holding is 15.22%.