MARUTI

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)

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Repeats to additional subscribers, no changes to text

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)

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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)

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

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

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

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

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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)

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July 31 (Reuters) - India's top carmaker Maruti Suzuki MRTI.NS reported a surprise quarterly profit rise on Thursday.

The Swift small car manufacturer's profit for April–June rose to 37.12 billion rupees ($423.8 million) from 36.5 billion a year earlier, and exceeded analysts' expectations of 31.05 billion rupees, according to data compiled by LSEG.

($1 = 87.5850 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru; Editing by Mrigank Dhaniwala)

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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

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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

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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

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Adds details from FADA, industry context paragraph 2 onwards

July 7 (Reuters) - Geopolitical tensions and spillover effects from U.S. tariffs may weigh on consumer sentiment, while China's rare earth export curbs could further tighten vehicle supply and drag on retail sales, India's Federation of Automobile Dealers Associations (FADA) said on Monday.

Retail volumes fell 9.4% in June from a month ago and the average time a car stayed in a showroom, or inventory days, rose to about 55 days from 52-53 days in May, above the FADA's recommended threshold of 21 days.

China's rare earth export curbs have upended global auto supply chains, exacerbating challenges for Indian carmakers already grappling with high inventories and tighter financing amid uncertainty over U.S. President Donald Trump's tariffs.

"As we enter July 2025, dealer sentiment appears tilted towards (a) slowdown - flat and de-growth expectations (42.8% and 26.1%) exceed growth forecasts (31.1%). Similarly, booking-pipeline traction remains uneven," FADA said.

However, above-normal monsoon showers should bolster rural demand in the near term, FADA said, adding that July will likely see mixed fortunes, driven by an agrarian tailwind, yet tempered by seasonal headwinds and elevated price points.

Last month, the FADA warned that demand may remain subdued in June, citing elevated inventory levels, reduced financing and concerns about rare earth shortages.

(Reporting by Chandini Monnappa in Bengaluru; Editing by Sumana Nandy)

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June 30 (Reuters) - Three of India's top carmakers together reported lower domestic sales for June, data from the companies showed on Tuesday, as buyers in urban India kept away from new vehicle purchases.

Market leader Maruti Suzuki MRTI.NS, Tata Motors TAMO.NS and Hyundai India HYUN.NS registered decline in sales of 13%, 15% and 12%, respectively.

The three automakers corner over 60% of India's car market, the third-largest in the world, where sales growth has lately stuttered after hitting record-highs for three successive years.

Maruti's sales for June dropped to their lowest since December 2023. The 'Swift' hatchback manufacturer took a hit in small cars – its largest segment – that have become costlier due to stricter safety and emission rules.

"The once mass small-car segment is not participating in the growth at all," said Rahul Bharti, Maruti's senior executive officer of corporate affairs.

Sales of the company's utility vehicles, mostly sport utility vehicles (SUVs), dropped 8.5% in June, to their lowest level since December 2023.

Meanwhile, Tata Motors' dispatches slid 15% to their lowest level since December 2021, while Hyundai logged a 12% decline in domestic sales.

Hyundai's Chief Operating Officer Tarun Garg said in a release that the company is "cautiously optimistic about a gradual recovery of demand."

Tata, too, said it is counting on its newly launched vehicles to support the carmaker in a year where "overall industry growth is expected to remain subdued."

Indeed, industry insiders have said they expect overall car sales to grow about 1%-2% in the year to March 2026, compared to last year's 2% growth.

Mahindra, an exception to the trend, said its SUV sales grew 18% in June to end the quarter with record-high dispatches to dealers. The blistering growth has powered Mahindra to the no. 2 spot in India's car market, a position held by Hyundai for the large part of two decades.

BY THE NUMBERS

(Reporting by Nandan Mandayam in Bengaluru; Editing by Shailesh Kuber)

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Adds comments from executives in paragraphs 4, 7

By Aditi Shah

MUMBAI, June 24 (Reuters) - India's Tata Motors TAMO.NS, owner of luxury carmaker Jaguar Land Rover, said on Tuesday that rare-earth export curbs imposed by China have not caused it to press any "panic buttons" yet, and that its electric vehicle launches were on track.

China's curbs on rare-earth exports have disrupted the global auto industry, with companies warning of a severe supply crunch. Rare-earth magnets are used in everything from windshield-wiper motors to anti-lock braking sensors in vehicles.

"Currently, I think there's no panic because we believe the supplies are coming through. There's no production curtailment. Nothing is being planned at this point in time," CFO PB Balaji said at an event in Mumbai.

Tata Motors' electric vehicle launch plans are on track, but may be reviewed if there is significant deterioration of rare earth supplies, CFO Balaji said.

Alternate sources for magnets, including alternate technologies, are being looked into, he said.

Maruti Suzuki MRTI.NS, India's top carmaker, cut near-term production targets for its electric vehicle e-Vitara by two-thirds because of rare-earths shortages, Reuters reported earlier this month.

Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and its EV subsidiary, said the company was looking at how to reduce the composition of rare earth magnets in its cars and how to completely eliminate them over the longer term.

China controls more than 90% of the global processing capacity for the magnets, which are used for automobiles, clean energy and home appliances. It enacted restrictions in April that require companies to obtain import permits from Beijing, as part of its retaliation against hefty U.S. tariffs.

Tata Motors CFO Balaji also said that Jaguar Land Rover will take price hikes "in a calibrated manner" to counter the impact of U.S. tariffs, but is not planning any manufacturing site in the U.S.

The Range Rover maker had lowered the forecast for its fiscal 2026 earnings before interest and taxes margin to 5%-7% last week from 10% earlier, amid uncertainty in the global auto industry.

(Reporting by Aditi Shah in Mumbai and Meenakshi Maidas and Manvi Pant in Bengaluru; Editing by Sonia Cheema, Rashmi Aich and Mrigank Dhaniwala)

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June 17 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:

• LAUNCHES 2025 GRAND VITARA S-CNG STARTING AT 1.3 MILLION RUPEES

Source text: ID:nBSE26DNKj

Further company coverage: MRTI.NS

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Repeats JUNE 10 story. No change to text.

By Aditi Shah

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(Reporting by Aditi Shah
Editing by Mark Potter)

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Adds share price movement in paragraph 10

By Aditi Shah

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(Reporting by Aditi Shah
Editing by Mark Potter)

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By Aditi Shah

NEW DELHI, June 2 (Reuters) - Maruti Suzuki MRTI.NS, India's top carmaker, said on Monday there is no immediate impact on its car production from China's export curbs on rare earth magnets, a key component in electric and gasoline cars.

Indian car and component manufacturers told Prime Minister Narendra Modi's officials last week that auto production could grind to a halt within days due to Chinese export restrictions on rare earth magnets, Reuters reported.

The companies want the government to lobby Beijing to relax the curbs.

(Reporting by Aditi Shah; Editing by Tom Hogue)

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By Aditi Shah

NEW DELHI, May 30 (Reuters) - India's biggest automakers are seeking to block a pollution management body's attempts to promote hybrid vehicles in government fleets in and around New Delhi, saying it will disrupt adoption of cleaner battery electric cars and hit investments, documents show.

Companies, including Mahindra & Mahindra MAHM.NS and Tata Motors TAMO.NS, are lobbying the ministry of heavy industries to overturn an attempt to equate hybrids with EVs and ensure incentives for all government programmes are restricted to electric models, five company letters seen by Reuters show.

In a May 2 advisory, the Commission for Air Quality Management, tasked with fixing severe air pollution levels in India's capital region, categorised strong hybrids as "cleaner vehicles" recommending their use in government fleets, a move that caught carmakers by surprise.

Given the "ultra-high density" of vehicular traffic in New Delhi and nearby areas, there is a need to move away from "polluting vehicles, dependent purely on fossil fuels like diesel and petrol", the commission said.

Automakers, however, argue that hybrids - which use a battery and combustion engine - are reliant on fossil fuels whereas EVs produce zero tailpipe emissions, making them an effective solution for the urban air pollution crisis.

"Our plea is for government policy and incentives to stay firmly focused only on EVs," Mahindra said in its May 15 letter to the heavy industries ministry.

Along with Tata and Mahindra, JSW MG Motor, Hyundai Motor and Kia Corp have also written to the ministry in support of electric cars, rekindling their face-off with hybrid proponents like Toyota Motor 7203.T and Maruti Suzuki MRTI.NS.

Tata, Mahindra, JSW MG Motor, Hyundai 005380.KS, HYUN.NS, Kia Corp 000270.KS and the ministry of heavy industries did not respond to requests for comment.

POLICY UNCERTAINTY

The potential opportunity is huge - of the 847,544 vehicles in use by government agencies across India in 2022, only 5,384 were EVs - less than 1%, official data showed.

A major concern for EV makers is that support for hybrids dilutes the Indian government's own policy which incentivises only EVs in its production-linked schemes and other programmes.

It will also create confusion among car buyers, companies and investors, hurting EV sales at a time when their growth is already slowing due to inadequate charging infrastructure and high upfront vehicle costs.

"The lack of a consistent and predictable policy environment may deter long-term investors ... particularly in high-capex, technology-intensive sectors like EV," said Tata, which has raised $1 billion from private equity firm TPG TPG.O for its EV push.

Tata in its May 15 letter said, the commission's move will undermine current and proposed EV investments, impact India's global image as an investor friendly destination and send mixed signals to international stakeholders.

Carmakers in India are expected to invest over $10 billion through 2030 to manufacture lithium-ion cells, EVs and batteries, ratings agency Moody's said in a report, adding EV adoption rates in India are still low versus China, Europe and the U.S.

Mahindra's EV unit counts Singapore's Temasek and British International Investment among investors while Hyundai plans to invest over $500 million in EVs in India.

(Reporting by Aditi Shah; editing by David Evans)

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Repeats May 28 story with no changes to text

By Aditi Shah

NEW DELHI, May 28 (Reuters) - Indian auto production could grind to a halt within days due to Chinese export restrictions on rare earth magnets, according to company executives and documents from industry groups, which want the government to lobby Beijing to relax the curbs.

China, which controls over 90% of global processing capacity for the magnets used for automobiles, clean energy and home appliances, enacted restrictions in April requiring companies to obtain import permits from Beijing.

Though a response to U.S. President Donald Trump's tariffs, the export curbs will impact automakers globally. And Indian companies say a disruption in the world's third-largest car market is imminent due to rapidly depleting stocks and the onerous process of obtaining new supplies.

In a meeting with commerce ministry officials last week, the Society of Indian Automobile Manufacturers (SIAM), an industry group, said inventories at auto part makers are expected to run out by the end of May, according to an unreleased document seen by Reuters.

SIAM was seeking the intervention of Prime Minister Narendra Modi's government to help access magnets held at Chinese ports since April 4.

"Starting end May or early June, auto industry production is expected to come to a grinding halt," SIAM said in the document, which was presented during a May 19 meeting attended by executives from Maruti Suzuki, Mahindra & Mahindra and Tata Motors.

While China has cleared exports from some magnet producers, including Volkswagen VOWG.DE suppliers, three auto industry executives told Reuters they fear strained relations between Beijing and New Delhi could hurt India's chances of getting quick approvals.

The company officials asked not to be identified due to the sensitivity of the issue.

When asked about the magnet restrictions' impact in India, China's embassy in New Delhi said it was "actively facilitating and streamlining compliant trade" in accordance with legal and regulatory requirements.

"China's lawful imposition of export controls on these items aims to better safeguard national security and interests," it said in a statement.

Mahindra MAHM.NS, Maruti MRTI.NS, Tata TAMO.NS, SIAM and India's commerce and external affairs ministries did not respond to requests for comment. Neither did the Auto Component Manufacturers Association of India (ACMA), which also attended the meeting.

PERMIT HEADACHES

While rare earth magnets are a crucial component in electric vehicle motors, they are also required for parts like power windows and audio speakers used in traditional cars.

And though the measures imposed by Beijing are meant to focus on high-performance exports, shipments of low-end magnets are also being held up at ports due to confusion around implementing the restrictions.

China's exports of permanent magnets fell 51% year on year to 2,626 tons in April, the first month of data following the curbs, customs data shows.

India's auto sector imported 460 tons of rare earth magnets, mostly from China, in the fiscal year ended March 31 and expects to import 700 tons worth $30 million this year, according to industry estimates.

"Though the cost of imported rare earth magnets is miniscule in vehicles, risk is vehicles cannot be manufactured even if we are short of one component," SIAM and ACMA said in a separate document submitted to the Indian government.

Indian companies are worried by the complexity of an import process that requires approvals from Indian ministries and documents including so-called "end-use certificates" stating the magnets are not for military purposes, the SIAM document said.

Those documents must be verified by the Chinese embassy in New Delhi and sent to companies' Chinese suppliers whereafter Beijing issues a licence, it added.

India should endorse applications from importers "within hours", the SIAM document said, and push the Chinese embassy and commerce ministry to approve them "on an urgent basis".

(Reporting by Aditi Shah; Editing by Joe Bavier)

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** Maruti Suzuki India MRTI.NS jumps nearly 4% to one-month high of 12,727 rupees

** Stock biggest gainer on Nifty auto index .NSEI, which is up 1.5%

** Co reports around 7% jump in April sales, with both domestic sales and exports increasing from last year

** "Product mix marginally improved with UV (utility vehicle) share in total sales volume pegged at ~33% vs 32% in the previous month," says ICICI Direct Research

** Stock set for biggest one-day pct gain in three months

** YTD, MRTI up 17.2% vs 0.6% losses in Nifty Auto index .NIFTYAUTO

(Reporting by Vivek Kumar M)

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

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

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

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

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

WHY IT MATTERS

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

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

KEY CONTEXT

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

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

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

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

BY THE NUMBERS

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

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** Shares of Maruti Suzuki India MRTI.NS rise 1.1% to 11,831.00 rupees

** Jefferies ("Buy"; trims PT to 13,600 rupees) lowers FY26-27 EBITDA margin estimates by 1 percentage point to 11.5% on limited pricing power amid weak demand, competitive pressures

** Also cuts MRTI's FY26-27 EPS estimations by 6-8%, mainly factoring in lower margins

** MRTI's Q4 profit unexpectedly fell 4.3%, compared to analysts' expectation of flat earnings

** Kotak ("Add"; trims PT to 12,275 rupees) says elevated costs for new Kharkhoda plant, higher safety costs for fitting all cars with six airbags will lead to 20 bps decline in FY26 EBITDA margin

** J.P.Morgan ("neutral"; PT unchanged at 12,800 rupees) cuts FY26 EBIT margin estimate by 80 bps to 9.1% on slowing domestic demand for cars

** Analysts on average rate MRTI "buy", same as smaller listed rivals - data compiled by LSEG

** MRTI up ~9% YTD

($1 = 85.2075 Indian rupees)

(Reporting by Vijay Malkar)

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Corrects paragraph 6 to say Maruti's small car sales dipped 0.9%, not 3.7%

April 25 (Reuters) - Indian carmaker Maruti Suzuki MRTI.NS reported a surprise drop in fourth-quarter profit on Friday, hurt by higher discounts and expenses.

The company's standalone profit fell 4.3% to 37.11 billion rupees (about $435 million). Analysts, on average, had estimated profit largely to be flat at 38.81 billion rupees, as per data compiled by LSEG.

Analysts noted that the company was forced to offer higher discounts, particularly on small cars, and spend more on marketing to spur demand in a quarter where it already had a high expenditure on launching its first-ever electric vehicle.

The company's total expenses grew 8.7%, with so-called "other expenses" growing 14.5%.

Maruti, India's biggest carmaker by volumes, is the first to report results this quarter, and its earnings are considered a bellwether for the sector's health.

Sales of the company's small cars and sedans, its biggest segment by volume, which includes 'WagonR' and 'Swift' models fell 0.9%, lower than the industry average of 4.5%.

Still, its revenue from sales grew 5.9% to 388.49 billion rupees, propped up by higher-priced sports utility vehicles.

($1 = 85.3975 Indian rupees)

(Reporting by Meenakshi Maidas and Nandan Mandayam in Bengaluru; Editing by Janane Venkatraman and Varun H K)

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By Aditi Shah

NEW DELHI, April 24 (Reuters) - India's capital New Delhi plans to limit gasoline and diesel-powered cars a family can buy as well as ban sales of fuel-guzzling motorbikes and scooters, according to a draft policy aimed at cleaning up one of the world's most polluted cities.

The measures represent one of the most drastic steps the city has lined up to tackle pollution, which often forces local authorities to ban some construction, shut schools and disrupt flights in the city of more than 30 million people during the winter season.

Under Delhi's new electric vehicle policy, the city government will also waive some local taxes on the purchase of hybrids, putting them on par with concessions given to EVs, while imposing a new levy of 0.5 rupees ($0.0059) on every litre of petrol sales, according to the 74-page draft seen by Reuters.

The primary objective "is to unlock the next phase of EV adoption, reduce air pollution and contribute to India's energy independence and net-zero targets," the draft stated.

Every year ahead of the onset of winter in Delhi, calm winds and low temperatures trap pollutants from sources including vehicles, industries and crop residue burning in nearby fields, raising the level of harmful toxins in the air.

Delhi launched the first phase of its EV policy in 2020 which helped boost the share of electric models to 12% of all new vehicle sales, including motorbikes and cars, in 2024.

Under the second phase, the policy document says, no new sales of gasoline, diesel and gas-based two-wheelers will be allowed from April 1, 2027. It is also providing a cash incentive of up to $350 on the purchase of electric bikes and scooters.

Officials at Delhi's transport ministry and the chief minister's office did not immediately respond to an email seeking comment.

LIFELINE FOR RESIDENTS

Two-wheelers are a lifeline for millions of Delhi residents, and the move could significantly impact Delhi's lower- and middle-income groups who depend on them, and not cars, to navigate the city's often congested roads.

In 2024, nearly 450,000 new two-wheeler scooters and motorbikes were sold in Delhi. There were 8 million vehicles on Delhi's roads in 2022-23, of which 67% were two-wheelers, according to central government figures.

A ban on the sale of fossil fuel two-wheelers from 2027 will hurt manufacturers such as Bajaj Motors BAJA.NS, TVS TVSM.NS and Hero MotoCorp HROM.NS, although some of the negative impact may be offset by increased sales of their electric two-wheelers.

And in a move aimed at the more affluent population, the policy is also set to limit the number of fossil fuel cars each household can purchase to two, as it aims for a 30% EV penetration by 2030, from around 2.7% last year.

"All private car owners in Delhi will be required to purchase only electric cars if they intend to own (a) third or subsequent car registered to the same residential address," the document stated.

The policy, which is expected to cost the Delhi government 28.6 billion rupees, is subject to change based on feedback from car makers and other stakeholders. It was not immediately clear when the policy will be finalised or how it will be funded.

The city government is also planning some tax waivers for hybrid vehicles to match the concessions to those given for EVs, potentially lowering their cost by up to 15%.

The move is in line with a similar move made by neighbouring state Uttar Pradesh. They are considered a win for the likes of Toyota Motor 7203.T and Maruti Suzuki MRTI.NS, but a setback for homegrown Tata Motors TAMO.NS and Mahindra & Mahindra MAHM.NS who focus on EVs.

($1 = 85.3350 Indian rupees)

(Reporting by Aditi Shah; Editing by Muralikumar Anantharaman)

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April 15 (Reuters) - Indian carmakers' sales to dealers grew 2% in financial year 2025, as steady demand for larger sport utility vehicles made up for weaker sales of small cars and sedans, industry data showed on Tuesday.

Carmakers sold a record 4.3 million units in the world's third-largest car market, according to the Society of Indian Automobile Manufacturers (SIAM), but the growth was at least a four-year low.

Since rising by 12% in fiscal year 2022 and 27% in 2023 to what was then a new record, India's domestic car sales growth has moderated, rising 8% in 2024 and 2% in 2025.

India's financial year runs from April through March.

The manufacturers in February estimated the industry would grow 1% to 2% in the current fiscal year, but analysts have called the forecasts conservative.

Carmakers have had to offer higher discounts for longer to prop up demand, as pent-up demand that had led growth in previous years fizzled out, analysts and industry insiders have said.

SIAM said it expects domestic demand to be boosted by successive rate cuts by India's central bank, as well as a cut in personal income tax announced earlier this year.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Varun H K)

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April 8 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:

• MARUTI SUZUKI INDIA LTD - LAUNCHES UPDATED GRAND VITARA AT 1.1 MILLION RUPEES

Source text: ID:nBSEJ43wG

Further company coverage: MRTI.NS

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By Aditi Shah and Shivangi Acharya

NEW DELHI, April 7 (Reuters) - The European Union wants India to eliminate tariffs on car imports under a long-pending trade deal and Prime Minister Narendra Modi's government is willing to sweeten its current proposal to seal the talks, sources told Reuters.

India is open to the phased reduction of tariffs to 10% from more than 100%, two industry sources and a government official said. That is despite industry lobbying for India to retain at least a 30% tariff even if it starts reducing the levy, and also not tinker with import duties on EVs for four more years to protect domestic players.

The EU's demands come weeks after U.S. President Donald Trump's administration sought a similar elimination of import duties on cars, including EVs, as part of bilateral trade talks with India, piling pressure on domestic carmakers.

Tariff cuts will be a victory for European carmakers such as Volkswagen VOWG.DE, Mercedes-Benz MBGn.DE and BMW BMWG.DE, widening their access to India. It could also be a win for Elon Musk's Tesla TSLA.O which will begin sales of imported EVs in India this year probably from its Berlin plant.

"EU has come back asking for a better deal and India wants to make a better offer," said one of the industry sources.

India's commerce ministry conveyed the EU's demands and India's stance to officials from the heavy industries ministry and auto industry representatives in a meeting last week, the three sources said.

The sources, who have knowledge of the talks, spoke on condition of anonymity because the negotiations are ongoing and private.

The European Commission declined to comment on specifics but shared a readout of its last round of talks with India in March.

"For many of the key areas, the EU and India have different approaches, objectives ... This translates, in some cases, in different levels of ambition," Olof Gill, commission spokesperson for trade said in a statement.

India's commerce ministry and the Society of Indian Automobile Manufacturers (SIAM), which represents major carmakers on the world's third-largest car market, did not respond to emails seeking comment.

HEAVILY PROTECTED MARKET

India's 4 million-unit-a-year car market is one of the most protected in the world and domestic carmakers have argued sharp tariff cuts would wipe out investment in local manufacturing by making imports cheaper.

Companies such as Tata Motors TAMO.NS and Mahindra & Mahindra MAHM.NS have especially lobbied against lowering import tariffs on EVs, saying it would hurt a sector in which they have invested heavily and in which they plan to pump more money.

Similar to its proposal to the U.S., India's auto industry has proposed an immediate reduction of tariffs on a limited number of petrol cars to 70% from more than 100% and then carrying out cuts in phases to 30%. On EVs, carmakers want no tariff cuts until 2029 followed by a phased reduction on limited imports to 30%, the sources said.

While it was not immediately clear if India had already made its 10% tariff offer to the EU, analysts expect both sides to be more flexible in negotiations given the threat of a global trade war and recessionary impact of Trump's hefty tariff increases.

India and the EU have been in trade talks for several years and in February agreed to conclude the deal by the end of the year as they look to soften the impact of tariffs.

António Costa, president of the European Council, said last week on social media platform X that it was time to "decisively advance in negotiations with India".

"If the EU is now feeling pressure to strike a deal with India we need to see how we can capitalise on that. It's all about leverage," said the first industry source.

(Reporting by Aditi Shah and Shivangi Acharya in New Delhi; Editing by Kate Mayberry)

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By Aditi Shah, Shivangi Acharya and Aftab Ahmed

NEW DELHI, April 2 (Reuters) - India plans to lower import tariffs on electric cars, rejecting requests from local automakers to delay such cuts by four years, as New Delhi prioritises closing a trade deal with the United States, government and industry sources told Reuters.

The automakers are lobbying Prime Minister Narendra Modi's government to delay any cut in EV tariffs until 2029, and then phase in a reduction to 30% from as high as roughly 100%, two industry sources and one government official said.

However, New Delhi is serious about lowering EV tariffs - which have riled U.S. President Donald Trump and his ally Tesla TSLA.O CEO Elon Musk - and the sector is set to be part of the first tranche of tariff reductions in a planned bilateral trade deal, this government official - and another - said.

"We have protected the auto industry for far too long. We will have to open it up," the second government official said, adding the plan was to lower tariffs "significantly", including on EVs.

The officials declined to disclose the size of the planned duty cut given ongoing negotiations with Washington.

The sources, who are familiar with the talks and the auto industry's demands, declined to be named as they are not authorised to speak to the media.

India's commerce ministry and the Society of Indian Automobile Manufacturers, which represents carmakers in the world's third-largest auto market, did not immediately respond to emails seeking comment.

New Delhi's plan to cut duties on EVs and other goods comes as it seeks to build bridges with Trump - who has referred to India as a "tariff king" - even as he prepares to announce reciprocal tariffs on trading partners later on Wednesday.

An immediate cut would be a victory for Tesla, which has finalised showrooms in Mumbai and New Delhi to begin selling imported cars in the South Asian nation this year. Trump has said it is currently "impossible" for Tesla to sell in India and it would be unfair if it had to build a factory there.

But it would be a setback for domestic players like Tata Motors TAMO.NS and Mahindra & Mahindra MAHM.NS, which have invested millions of dollars in local EV manufacturing, with more to come, and lobbied against duty cuts.

Automakers fear any agreement with the U.S. would set a precedent for ongoing trade talks with the European Union and Britain, intensifying competition in India's small but fast growing EV sector, three of the sources said.

India's EV sales, dominated by Tata Motors, accounted for just 2.5% of total car sales of 4.3 million in 2024, and the government wants to increase this to 30% by 2030.

Carmakers are open to some immediate duty cut on gasoline models, followed by a phased reduction to 30%, but say their EV investment is tied to New Delhi's incentive programme for local manufacturing that runs until 2029, and allowing cheaper imports before then would hurt their competitiveness, the sources added.

"They are not so rigid on ICE (internal combustion engine vehicles) but have sought careful consideration for EV duties given early investment commitments," the first government source said.

(Reporting by Aditi Shah, Shivangi Acharya and Aftab Ahmed. Additional reporting by Aditya Kalra in New Delhi. Editing by Mark Potter)

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April 1 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:

• MARUTI SUZUKI INDIA LTD - SELLS 192,984 UNITS IN MARCH 2025

Source text: ID:nBSE3cqkFL

Further company coverage: MRTI.NS

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March 26 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:

• APPROVED SETTING UP 3RD PLANT AT KHARKHODA

• APPROVED SETTING UP THE 3RD PLANT AT KHARKHODA WITH A CAPACITY OF UP TO 250,000 VEHICLES PER YEAR

• INVESTMENT REQUIRED 74.10 BILLION RUPEES

Source text: ID:nBSE91wvRB

Further company coverage: MRTI.NS

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March 21 (Reuters) - Mahindra and Mahindra MAHM.NS will increase prices of its SUVs and other commercial vehicles by up to 3% from April, the company said on Friday, becoming the latest Indian carmaker to raise prices to combat rising costs.

Already, market leader Maruti Suzuki MRTI.NS, Tata Motors TAMO.NS and Hyundai Motor India HYUN.NS have said they will hike prices between 2% and 4% from next month.

These higher expenses are due to rising commodity prices, elevated import duties on raw materials and supply chain disruptions.

Mahindra and Mahindra said its price increases will vary depending on the model of the vehicle.

(Reporting by Ananta Agarwal in Bengaluru; Editing by Savio D'Souza)

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