MARUTI

By Aditi Shah

NEW DELHI, Feb 20 (Reuters) - Tata Motors TAMO.NS is betting that its new low-priced Punch EV will succeed in cracking the dominant budget segment of the world's third-largest car market for electric vehicles, its CEO said ahead of the model's launch on Friday.

Around 65% of the 4.6 million passenger vehicles sold in India last year were priced below $13,200. But, of those affordable cars, just 1.6% were EVs, compared to 10% of those in higher price categories.

There currently are only a small number of EV models available in the lower price range in India. And range anxiety and concerns around their slow charging times and battery life reliability are holding back buyers, Shailesh Chandra told reporters.

"The real challenge is the entry segment. Until we crack this, we will not be able to mainstream EVs," Chandra said.

The new Punch EV is priced from $10,650, with a long-range variant that can cover a distance of 350 kilometres (217 miles) on a single charge selling for $13,850.

The Punch can be charged from a 20% battery level to 80% in 26 minutes with a fast charger, the company says, and comes with a lifetime battery warranty.

Tata is also offering an option to decouple the price of the car from the battery, reducing the EV's upfront cost to $7,100. The battery can then be paid for separately at a price of 3 cents per km.

GOVERNMENT WANTS MORE EV ADOPTION, BUT SALES LAGGING

India's government is pushing to increase EV sales to 30% of the total market by 2030 from around 5% currently to reduce the country's dependence on imported fuel and bring down high levels of pollution in its cities.

However, EV sales growth has slowed, pushing carmakers to offer discounts.

Chandra said Tata Motors is sacrificing margins "to some extent" on its EV range to ensure there is long-term progress towards electrification, but added that profits are not far below its combustion engine car business.

"EVs have moved from being experimental to being a serious play," he said.

Tata, India's largest seller of electric vehicles, competes with JSW MG Motor, SAIC's 600104.SS India venture, and Mahindra & Mahindra MAHM.NS.

Maruti Suzuki MRTI.NS, India's biggest carmaker, is the latest to enter the EV segment with its e-Vitara SUV, priced from around $12,000 for the base variant in which the battery is leased separately and $22,000 for the long-range model.

(Reporting by Aditi Shah; Editing by Joe Bavier)

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

** India's top carmaker Maruti Suzuki's MRTI.NS first EV in country priced attractively, but not profitable, says Nomura ("Neutral", PT: 16,118 rupees)

** e VITARA launched at 1.1 million rupees (around $12,100) with battery rental plan at 3.99 rupees/km; full-purchase price at 1.6 million-2 million rupees

** Rivals Tata Motors' TAMO.NS and Hyundai's HYUN.NS competing models cost between 1.8 million rupees and 2.4 million rupees

** MRTI to suffer 150K-200K rupees loss per unit at full price; Forecasts combined domestic sales of 12,000 units (FY26), 24,000 units (FY27) for e VITARA and Toyota version - Nomura

** Brokerage says total ownership cost for battery rental plan more expensive over 8-year period

** Adds, industry-wide sales from battery rental plans contribute single digit percentage to overall pie

** Warns MRTI needs strong cost-cutting for future EVs to prevent margin drag as e VITARA sets pricing benchmark

** MRTI down 0.6% at 15,070 rupees on Thursday

($1 = 90.9920 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru)

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

Feb 17 (Reuters) - India's top car maker, Maruti Suzuki MRTI.NS, launched its maiden electric vehicle on Tuesday, accompanied by a battery rental plan.

The company said its e VITARA SUV would be priced at 1.1 million rupees (around $12,100), with the battery priced at 3.99 rupees per kilometre. It did not share further details.

Maruti exported 13,000 units of the e VITARA to 28 countries in 2025 after starting production in August.

The car has been developed under parent Suzuki Motor's 7269.T global design and manufacturing partnership with Toyota 7203.T and is built in India.

($1 = 90.6900 Indian rupees)

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

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

Feb 13 (Reuters) -

• INDIA AUTO INDUSTRY BODY SIAM - INDIA'S JAN TOTAL DOMESTIC PASSENGER VEHICLE SALES 4,49,616 UNITS

• SIAM - INDIA'S JAN 2-WHEELER SALES 19,25,603 UNITS

• SIAM - INDIA'S JAN 3-WHEELER SALES 75,725 UNITS

• SIAM: NEW BUDGET INITIATIVES, POLICY TAILWINDS EXPECTED TO DELIVER LONG-TERM BENEFITS, SUPPORT GROWTH IN MEDIUM TERM

(([email protected];;))

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Feb 10 - By Nidhi C Sai, Editor Online Production, with global Reuters staff

A global selloff in software stocks sparked by rapid advances in artificial intelligence has rippled to India's shores.

For its $283 billion IT industry built on labour-intensive outsourcing, the ramifications could be substantial. Is this just a bout of AI anxiety that will pass or does the industry need to evolve structurally? That's our focus this week.

Plus, India has scrapped proposed concessions for small cars in upcoming fuel-emissions rules to level the playing field. Scroll down for more on that.

THIS WEEK IN ASIA

China critic Jimmy Lai sentenced to 20 years in jail after landmark Hong Kong trial

As Japan's Takaichi creates election history, only markets stand in her way

China set to widen footprint in Bangladesh as India's ties decline

Thai PM Anutin's poll win calms turmoil but hard economic test awaits

Bangladesh votes in world's first Gen Z-inspired election

A 30-YEAR LEGACY UNDER PRESSURE

Indian IT stocks are facing a moment of reckoning. The launch of plug-ins for Anthropic's Claude Cowork agent, designed to automate tasks across legal, sales, marketing and data analysis, has rattled investors and triggered a sharp selloff last week in what has long been one of India's most reliable growth engines.

Indian software exporters lost $22.5 billion in market value last week, with the Nifty IT index .NIFTYIT falling about 7%, marking its steepest weekly fall in more than four months. The rout mirrored a brutal global selloff. Roughly $800 billion was wiped off the S&P 500 software and services index .SPLRCIS before a rebound, its worst performance against the broader market in 25 years, according to SocGen.

Some analysts warn that the IT sector, the flagship for India's exports since the 1990s, could be vulnerable to rapid advances in AI.

"The market fears (the AI tools) may replace IT services that are currently outsourced. What the real impact will be remains to be seen," said VK Vijayakumar, chief investment strategist at Geojit Investments.

Jefferies struck a darker tone. "There is more pain ahead for Indian IT," it said, adding that Anthropic's and Palantir's PLTR.O claims highlight how AI could potentially erode application-service revenues. "With application services accounting for 40%–70% of revenues, firms face growth pressures, and consensus growth estimates do not fully reflect this, posing downside risks to valuations," Jefferies said.

Brokerage Motilal Oswal estimates that 9%-12% of industry revenues could be eliminated over the next four years due to AI-led disruption.

The timing is particularly relevant. India's IT industry is otherwise benefiting from geopolitical tailwinds, with trade deals struck with the United States and the European Union expected to support cross-border services exports and reinforce India's position as a trusted technology partner.

But those policy positives offer little insulation from technological shock. While trade deals can help expand the volume of outsourced work, AI-led automation threatens to compress project timelines and reduce billable hours, striking at the labour-intensive model that has underpinned India's IT boom for decades.

PANIC OR EARLY WARNING?

Not everyone feels this is an existential threat. Some analysts see a classic case of markets running ahead of fundamentals.

Centrum Broking's Piyush Pandey called the selloff a “knee-jerk” reaction. "AI tools have been in the works, and this is how the industry is now shaping up. However, they are not expected to materially disrupt the industry as of now," he said.

JPMorgan said it was "illogical to extrapolate the launch of some tools to an expectation that companies will replace every layer of mission-critical enterprise software," while Kotak Institutional Equities described the decline as "plenty of panic over a little flutter".

That view is echoed at the very top of the AI value chain. Nvidia NVDA.O CEO Jensen Huang dismissed fears that AI will replace software as "the most illogical thing in the world". "If you were a human or robot… would you use tools or reinvent tools? The answer, obviously, is to use tools," he said.

Still, others remain cautious. "Surely, there would be other tools in the making… we don't foresee the glory days of the IT sector… returning soon," CapGrow Capital's Arun Malhotra said.

It is not that India's IT behemoths - TCS TCS.NS, Infosys INFY.NS and Wipro WIPR.NS - are sitting quietly. Infosys is forming new AI-led partnerships, TCS is embedding AI more deeply into its services, and Wipro is saying AI now underpins many of the deals it is chasing globally.

But can they adapt fast enough, or is AI rewriting the rules of outsourcing? Write to me at [email protected].

MARKET MATTERS

The U.S.–India trade deal has lifted the cloud over an unloved Indian rupee and may be enough to pause relentless foreign selling in stocks. But investors say a durable turnaround will require a rebound in earnings growth and stronger fundamentals.

The long-awaited agreement, announced first by President Donald Trump last week, sparked a market rally and the rupee's best gain in seven years, signalling improving diplomatic and trade ties with Washington.

Read this analysis on how India's markets are getting tariff relief but are not a buy yet, by Reuters journalists Jaspreet Kalra, Ankur Banerjee and Karin Strohecker.

Read more on how the India-U.S. trade deal is giving tariff-free access to Harley bikes, but no reprieve for Tesla TSLA.O.

THIS WEEK'S MUST READ

India has dropped a proposed fuel-efficiency concession for small cars after rival automakers argued it would disproportionately benefit market leader Maruti Suzuki MRTI.NS.

The revised draft tightens emissions rules across the board, removes weight-based leniency and introduces a steeper reduction pathway, increasing pressure on all car makers to accelerate electric and hybrid vehicle sales.

Read this exclusive report by Reuters journalist Aditi Shah.

(Reporting by Nidhi C Sai; Editing by Muralikumar Anantharaman)

(([email protected]; +91 70456 55251))

Repeats February 6 story. No change to text.

By Aditi Shah

NEW DELHI, Feb 9 (Reuters) - India has scrapped a planned concession for small cars in upcoming fuel-efficiency rules after automakers including Tata Motors and Mahindra & Mahindra argued it would benefit only one company, a government document shows.

A September draft had proposed leniency for petrol cars weighing 909 kg (2,004 lb) or less - a carve-out widely seen as favouring Maruti Suzuki, which controls 95% of India's small‑car market.

India's Power Ministry has now removed that exemption and tightened other parameters, increasing pressure on all automakers to ramp up electric and hybrid car sales, according to the latest 41-page draft reviewed by Reuters.

The new rules curb over-compensation for vehicle weight, aim to level the field between light and heavy fleet manufacturers, and are designed to deliver real-world efficiency gains, the document said.

They introduce "a substantially steeper reduction pathway" for emissions, it added.

The power ministry did not respond to a request for comment.

PROMOTING ELECTRIC, HYBRID MODELS

Transport accounts for about 12% of India's energy use and is a major driver of petroleum imports and carbon emissions. Passenger vehicles make up nearly 90% of transport-related emissions, the document says.

Corporate Average Fuel Efficiency norms dictate permissible CO2 emissions across a manufacturer's fleet of passenger cars weighing less than 3,500 kg (7,716 lb). Updated every five years, they push automakers towards cleaner technologies including electrification, compressed natural gas and flex-fuel.

The new rules will apply from April 2027 for five years and are central to automakers' product and powertrain investment plans. It was not immediately clear when the rules will be finalised.

The September draft would have allowed fuel-consumption targets to rise faster with vehicle weight, easing compliance for makers of heavier cars such as Mahindra MAHM.NS, Tata TAMO.NS and Volkswagen VOWGp.DE, while tightening demands on lighter-fleet players such as Maruti MRTI.NS. That imbalance prompted the carve-out.

The revised plan reduces the extent to which heavier vehicles gain more relaxed targets.

"Manufacturers with heavier fleets ... are required to achieve stronger intrinsic efficiency improvements," the document said.

A credit system will reward companies that sell more EVs and plug-in hybrids, and pooling of fuel-consumption performance between companies will be allowed. Non-compliance will draw penalties of up to $550 per car.

The revised plan aims to cut average fleet emissions to about 100 grams/km over the five years to March 2032 from 114 grams/km. With credits, that could fall to as low as 76 grams/km if electric models reach 11% of total car sales by 2032.

(Reporting by Aditi Shah. Editing by Mark Potter)

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

By Aditi Shah

NEW DELHI, Feb 6 (Reuters) - India has scrapped a planned concession for small cars in upcoming fuel-efficiency rules after automakers including Tata Motors and Mahindra & Mahindra argued it would benefit only one company, a government document shows.

A September draft had proposed leniency for petrol cars weighing 909 kg (2,004 lb) or less - a carve-out widely seen as favouring Maruti Suzuki, which controls 95% of India's small‑car market.

India's Power Ministry has now removed that exemption and tightened other parameters, increasing pressure on all automakers to ramp up electric and hybrid car sales, according to the latest 41-page draft reviewed by Reuters.

The new rules curb over-compensation for vehicle weight, aim to level the field between light and heavy fleet manufacturers, and are designed to deliver real-world efficiency gains, the document said.

They introduce "a substantially steeper reduction pathway" for emissions, it added.

The power ministry did not respond to a request for comment.

PROMOTING ELECTRIC, HYBRID MODELS

Transport accounts for about 12% of India's energy use and is a major driver of petroleum imports and carbon emissions. Passenger vehicles make up nearly 90% of transport-related emissions, the document says.

Corporate Average Fuel Efficiency norms dictate permissible CO2 emissions across a manufacturer's fleet of passenger cars weighing less than 3,500 kg (7,716 lb). Updated every five years, they push automakers towards cleaner technologies including electrification, compressed natural gas and flex-fuel.

The new rules will apply from April 2027 for five years and are central to automakers' product and powertrain investment plans. It was not immediately clear when the rules will be finalised.

The September draft would have allowed fuel-consumption targets to rise faster with vehicle weight, easing compliance for makers of heavier cars such as Mahindra MAHM.NS, Tata TAMO.NS and Volkswagen VOWGp.DE, while tightening demands on lighter-fleet players such as Maruti MRTI.NS. That imbalance prompted the carve-out.

The revised plan reduces the extent to which heavier vehicles gain more relaxed targets.

"Manufacturers with heavier fleets ... are required to achieve stronger intrinsic efficiency improvements," the document said.

A credit system will reward companies that sell more EVs and plug-in hybrids, and pooling of fuel-consumption performance between companies will be allowed. Non-compliance will draw penalties of up to $550 per car.

The revised plan aims to cut average fleet emissions to about 100 grams/km over the five years to March 2032 from 114 grams/km. With credits, that could fall to as low as 76 grams/km if electric models reach 11% of total car sales by 2032.

(Reporting by Aditi Shah. Editing by Mark Potter)

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

Feb 2 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:

• HAVE PENDING ORDERS OF ABOUT 170,000 UNITS

• FACING SOME PRODUCTION CONSTRAINTS WHICH IS NOT HELPING US MEET DEMAND

• PRODUCTION CONSTRAINTS TO LAST FOR FEW MORE MONTHS

Further company coverage: MRTI.NS

(([email protected];))

** Shares of Maruti Suzuki India MRTI.NS down 2.6% to 14,495 rupees

** India's top carmaker's Q3 profit rose 4% to 37.94 bln rupees ($412.1 mln), but missed analysts' estimate of 42.61 bln rupees, per data compiled by LSEG

** MRTI set to fall for a seventh straight session, dropping about 11% so far

** Stock remains under pressure after India and European Union on Tues announced tariff cuts on European car imports

** Ambit Capital ("Sell"; PT: 13,286 rupees) says higher EV spending, new capacity costs, and a shift toward lower‑margin models are weighing on MRTI's margins, while volume‑driven strategy risks prioritising market share over profits

** Brokerage Emkay Global ("Buy") says it remains positive on MRTI due to "long-term prospects aided by its aggressive product cycle targets, expectation of rebound in small cars after years of muted demand", but cuts PT by 4.5% to 17,000 rupees on rising commodity pressure

** Avg rating "buy", median PT 18,143 rupees - data compiled by LSEG

** MRTI down 13.6% so far in Jan

($1 = 92.0630 Indian rupees)

(Reporting by Anuran Sadhu in Bengaluru)

(([email protected]; +91 8697274436;))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Katrina Hamlin

HONG KONG, Jan 28 (Reuters Breakingviews) - Japan’s car market is ripe for consolidation. Years of falling sales both at home and abroad had already been putting financial pressure on several of the country's seven major automakers. Now they have to contend with the additional burdens of U.S. tariffs and Chinese competition. One attempt at a tie-up floundered last year when the country's then second- and third-largest players - Nissan Motor 7201.T and Honda Motor 7267.T - abandoned talks. But a Suzuki Motor 7269.T takeover of Mazda Motor 7261.T would be a smart move.

DECLINE AND FALL

Car registrations in Japan have been in decline for about a quarter of a century. That's unlikely to reverse: the country's population has contracted every year since around 2009. And while Toyota Motor 7203.T and its compatriots were among the first automakers to go global by exporting to Europe and the Americas, that model, too, is in trouble. Shipments peaked nearly 20 years ago; by 2024, they were a third lower than 2008. They are still falling, along with Japanese companies' overseas output, and margins are down too as competition and trade wars bite. The average pre-tax margin for the country's seven top carmakers was less than 5% in 2025, compared with 8.4% in 2023, Visible Alpha shows.

Sputtering carmakers have a knock-on effect: sales have weakened at several major domestically listed parts suppliers, including component makers Koito Manufacturing 7276.T, Jtekt 6473.T and Rohm 6963.T, whose net margins will only reach around 3% at best this financial year, according to Visible Alpha. Smaller players in the supply chain could face a crisis if they are overly dependent on that client, just like Nissan supplier Marelli, which filed for Chapter 11 bankruptcy proceedings last year.

Mazda epitomises those woes. Sales are stalling, with revenue dropping 6.5% to 2.2 trillion yen in the six months to the end of September, while total unit sales slipped 3.3% to 609,000 vehicles. The group is expected to report a net loss of $3 million for the full year, per analysts surveyed by Visible Alpha. If its problems deepen, they will be passed on to a web of local suppliers clustered around its Hiroshima headquarters, creating fresh headaches.

Suzuki, meanwhile, is in a better position thanks to its focus on the Indian market - largely closed to Chinese rivals - and lack of exposure to the U.S. market and its levies. The group could extract some value if it were to buy its struggling compatriot. The two manufacturers' forecast sales for the current year would come to roughly 4.5 million vehicles, making the hypothetical combined entity Japan’s second-largest carmaker, with much improved economies of scale.

True, Mazda has weathered tough times before. It has not signalled that it wants to sell, and the company did not respond to emails seeking comment on the idea. But if nothing changes, driving solo looks gruelling. Many of the problems behind recent lacklustre numbers are beyond Mazda’s control.

DOUBLE TROUBLE

President Donald Trump's administration has sextupled to 15% the tariff on vehicles made in Japan, while the levy for cars made in Mexico is now set at 25%. Those two countries, though, are Mazda’s largest manufacturing hubs, while the U.S. is Mazda’s biggest single market accounting for 435,000 of 1.3 million sales in the most recent financial year. Yet Stateside production lines churned out only around 114,000 units over the same period, per Visible Alpha.

Meanwhile Chinese rivals are dominating in the People's Republic. Foreign badges’ market share declined to 30% in the first 11 months of 2025, less than half the 64% they managed in 2020, according to consultancy Automobility. Mazda’s own sales fell to 65,000 in 2025, almost 70% lower than its full-year 2020 showing of 210,000.

Mazda is ceding ground to Chinese competition elsewhere, too. The brand’s sales fell 23% across six key ASEAN markets in 2024 from a year earlier, according to PwC, while BYD’s 002594.SZ rose 62%. Its compatriots are suffering there as well, with sales declining at Toyota, Honda, Nissan, and Suzuki, while Mitsubishi Motor 7211.T was flat. The Hiroshima-based group is especially susceptible to Chinese competition as it has been slow to develop a portfolio of pure electric cars.

Mazda is not, at least, saddled with debt. Its gross leverage is 2.8 times forecast EBITDA, about half Japanese automakers' average, per analyst estimates. And it has a net cash position of $1.6 billion, though that fell by $1 billion in the six months to the end of September. That leaves less to invest in crucial new technologies like battery power and assisted driving, which it will need to compete with upstarts from China and beyond.

It has a powerful patron in Toyota, which owns a 5% stake. The world’s largest carmaker, which has weathered the industry's myriad challenges better than most, could in theory help its long-time partner, say by increasing its holding. However, this would be at odds with both Japan Inc’s efforts to curb cross-shareholdings and Chair Akio Toyoda’s preferred strategy: he has argued forcefully against stretching Toyota’s already massive manufacturing footprint, expected to surpass 10 million vehicles in 2026, preferring partnerships for specific projects such as the pair’s long-term collaboration on engines.

HITCHING UP

That’s why allowing Suzuki to take the wheel might be a more plausible option. The $28 billion company is going from strength to strength. Focusing on India and other markets that are less vulnerable to both Chinese rivals and trade wars has helped it to continue riding Japan’s tried and tested export model, overtaking Nissan to become the country’s third-largest Japanese manufacturer. Suzuki is the only one of the seven players whose pre-tax margin is higher than three years ago. And at some 11% it both outstrips industry leader Toyota’s and dwarfs estimates for a 1.6% margin at Mazda this financial year. With a net cash position of over $1 billion and total cash of almost $6 billion, on paper it has the firepower to buy a smaller group like Mazda outright, make an all-stock offer or use a combination of cash and shares.

Suppose Suzuki were to offer a premium of around 20% for Mazda’s stock, valuing its enterprise at around $4.5 billion after factoring in its cash position. Suzuki’s zealous cost controls could help Mazda to achieve its targeted cuts of around 40 billion yen, which otherwise appear ambitious since the company is not planning drastic measures such as factory closures, according to researchers at Pelham Smithers Associates. A proportionate increase in the consensus forecast for Mazda's operating profit in the year ending in March 2027, taxed at around 25%, would bring net operating profit after tax to almost $700 million. That would equate to a roughly 15% return on invested capital, versus Mazda’s 4.4% weighted average cost of capital as calculated by Morningstar.

Mazda makes some sense for Suzuki strategically, too. Besides the added scale, it would help diversify Suzuki’s markets and portfolio. Today, the brand depends on India for about half its sales and lacks a significant U.S. base. While that has been a blessing this past year given Trump’s tariffs, in the future the world's largest economy could be an attractive area for expansion, leveraging Mazda’s sales network and modest local manufacturing capacity. The latter’s more premium vehicles would add variety to Suzuki’s budget-friendly options as well. Mazda technology such as its Wankel rotary engine, which suits increasingly popular extended-range hybrids that charge batteries via a gasoline motor, is also attractive.

True, history suggests any tie-up between Japan’s storied automakers will be hard to pull off. Distinct corporate cultures and historic marques’ enormous pride in their own engineering and brands complicate integration. A mooted deal between Honda and Nissan last year imploded after the two clashed over terms and a turnaround plan, Reuters reported.

However, Suzuki has proved it is more than capable of constructive collaboration with incredibly different companies. A standout is its 40-plus years of partnership with Maruti in India, which at one point accounted for half of sales in the country. Today their market share is closer to 40%, but investors remain confident – locally listed Maruti Suzuki India MRTI.NS shares started the year at a record high. It has worked closely with other partners, too, ranging from giants Toyota and Volkswagen VOWG.DE to Mazda itself, with which it has offered cross-badged vehicles – models made by Suzuki, sold under the Mazda brand.

Japan’s sprawling auto industry is more than ready for consolidation. A Mazda-Suzuki mashup might bring back corporate matchmakers’ bad memories of Nissan and Honda’s doomed romance, but the idea deserves a closer look.

Follow Katrina Hamlin on Bluesky and LinkedIn.

(Editing by Antony Currie; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on HAMLIN/[email protected]; Reuters Messaging: [email protected]))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Katrina Hamlin

HONG KONG, Jan 28 (Reuters Breakingviews) - Japan’s car market is ripe for consolidation. Years of falling sales both at home and abroad had already been putting financial pressure on several of the country's seven major automakers. Now they have to contend with the additional burdens of U.S. tariffs and Chinese competition. One attempt at a tie-up floundered last year when the country's then second- and third-largest players - Nissan Motor 7201.T and Honda Motor 7267.T - abandoned talks. But a Suzuki Motor 7269.T takeover of Mazda Motor 7261.T would be a smart move.

DECLINE AND FALL

Car registrations in Japan have been in decline for about a quarter of a century. That's unlikely to reverse: the country's population has contracted every year since around 2009. And while Toyota Motor 7203.T and its compatriots were among the first automakers to go global by exporting to Europe and the Americas, that model, too, is in trouble. Shipments peaked nearly 20 years ago; by 2024, they were a third lower than 2008. They are still falling, along with Japanese companies' overseas output, and margins are down too as competition and trade wars bite. The average pre-tax margin for the country's seven top carmakers was less than 5% in 2025, compared with 8.4% in 2023, Visible Alpha shows.

Sputtering carmakers have a knock-on effect: sales have weakened at several major domestically listed parts suppliers, including component makers Koito Manufacturing 7276.T, Jtekt 6473.T and Rohm 6963.T, whose net margins will only reach around 3% at best this financial year, according to Visible Alpha. Smaller players in the supply chain could face a crisis if they are overly dependent on that client, just like Nissan supplier Marelli, which filed for Chapter 11 bankruptcy proceedings last year.

Mazda epitomises those woes. Sales are stalling, with revenue dropping 6.5% to 2.2 trillion yen in the six months to the end of September, while total unit sales slipped 3.3% to 609,000 vehicles. The group is expected to report a net loss of $3 million for the full year, per analysts surveyed by Visible Alpha. If its problems deepen, they will be passed on to a web of local suppliers clustered around its Hiroshima headquarters, creating fresh headaches.

Suzuki, meanwhile, is in a better position thanks to its focus on the Indian market - largely closed to Chinese rivals - and lack of exposure to the U.S. market and its levies. The group could extract some value if it were to buy its struggling compatriot. The two manufacturers' forecast sales for the current year would come to roughly 4.5 million vehicles, making the hypothetical combined entity Japan’s second-largest carmaker, with much improved economies of scale.

True, Mazda has weathered tough times before. It has not signalled that it wants to sell, and the company did not respond to emails seeking comment on the idea. But if nothing changes, driving solo looks gruelling. Many of the problems behind recent lacklustre numbers are beyond Mazda’s control.

DOUBLE TROUBLE

President Donald Trump's administration has sextupled to 15% the tariff on vehicles made in Japan, while the levy for cars made in Mexico is now set at 25%. Those two countries, though, are Mazda’s largest manufacturing hubs, while the U.S. is Mazda’s biggest single market accounting for 435,000 of 1.3 million sales in the most recent financial year. Yet Stateside production lines churned out only around 114,000 units over the same period, per Visible Alpha.

Meanwhile Chinese rivals are dominating in the People's Republic. Foreign badges’ market share declined to 30% in the first 11 months of 2025, less than half the 64% they managed in 2020, according to consultancy Automobility. Mazda’s own sales fell to 65,000 in 2025, almost 70% lower than its full-year 2020 showing of 210,000.

Mazda is ceding ground to Chinese competition elsewhere, too. The brand’s sales fell 23% across six key ASEAN markets in 2024 from a year earlier, according to PwC, while BYD’s 002594.SZ rose 62%. Its compatriots are suffering there as well, with sales declining at Toyota, Honda, Nissan, and Suzuki, while Mitsubishi Motor 7211.T was flat. The Hiroshima-based group is especially susceptible to Chinese competition as it has been slow to develop a portfolio of pure electric cars.

Mazda is not, at least, saddled with debt. Its gross leverage is 2.8 times forecast EBITDA, about half Japanese automakers' average, per analyst estimates. And it has a net cash position of $1.6 billion, though that fell by $1 billion in the six months to the end of September. That leaves less to invest in crucial new technologies like battery power and assisted driving, which it will need to compete with upstarts from China and beyond.

It has a powerful patron in Toyota, which owns a 5% stake. The world’s largest carmaker, which has weathered the industry's myriad challenges better than most, could in theory help its long-time partner, say by increasing its holding. However, this would be at odds with both Japan Inc’s efforts to curb cross-shareholdings and Chair Akio Toyoda’s preferred strategy: he has argued forcefully against stretching Toyota’s already massive manufacturing footprint, expected to surpass 10 million vehicles in 2026, preferring partnerships for specific projects such as the pair’s long-term collaboration on engines.

HITCHING UP

That’s why allowing Suzuki to take the wheel might be a more plausible option. The $28 billion company is going from strength to strength. Focusing on India and other markets that are less vulnerable to both Chinese rivals and trade wars has helped it to continue riding Japan’s tried and tested export model, overtaking Nissan to become the country’s third-largest Japanese manufacturer. Suzuki is the only one of the seven players whose pre-tax margin is higher than three years ago. And at some 11% it both outstrips industry leader Toyota’s and dwarfs estimates for a 1.6% margin at Mazda this financial year. With a net cash position of over $1 billion and total cash of almost $6 billion, on paper it has the firepower to buy a smaller group like Mazda outright, make an all-stock offer or use a combination of cash and shares.

Suppose Suzuki were to offer a premium of around 20% for Mazda’s stock, valuing its enterprise at around $4.5 billion after factoring in its cash position. Suzuki’s zealous cost controls could help Mazda to achieve its targeted cuts of around 40 billion yen, which otherwise appear ambitious since the company is not planning drastic measures such as factory closures, according to researchers at Pelham Smithers Associates. A proportionate increase in the consensus forecast for Mazda's operating profit in the year ending in March 2027, taxed at around 25%, would bring net operating profit after tax to almost $700 million. That would equate to a roughly 15% return on invested capital, versus Mazda’s 4.4% weighted average cost of capital as calculated by Morningstar.

Mazda makes some sense for Suzuki strategically, too. Besides the added scale, it would help diversify Suzuki’s markets and portfolio. Today, the brand depends on India for about half its sales and lacks a significant U.S. base. While that has been a blessing this past year given Trump’s tariffs, in the future the world's largest economy could be an attractive area for expansion, leveraging Mazda’s sales network and modest local manufacturing capacity. The latter’s more premium vehicles would add variety to Suzuki’s budget-friendly options as well. Mazda technology such as its Wankel rotary engine, which suits increasingly popular extended-range hybrids that charge batteries via a gasoline motor, is also attractive.

True, history suggests any tie-up between Japan’s storied automakers will be hard to pull off. Distinct corporate cultures and historic marques’ enormous pride in their own engineering and brands complicate integration. A mooted deal between Honda and Nissan last year imploded after the two clashed over terms and a turnaround plan, Reuters reported.

However, Suzuki has proved it is more than capable of constructive collaboration with incredibly different companies. A standout is its 40-plus years of partnership with Maruti in India, which at one point accounted for half of sales in the country. Today their market share is closer to 40%, but investors remain confident – locally listed Maruti Suzuki India MRTI.NS shares started the year at a record high. It has worked closely with other partners, too, ranging from giants Toyota and Volkswagen VOWG.DE to Mazda itself, with which it has offered cross-badged vehicles – models made by Suzuki, sold under the Mazda brand.

Japan’s sprawling auto industry is more than ready for consolidation. A Mazda-Suzuki mashup might bring back corporate matchmakers’ bad memories of Nissan and Honda’s doomed romance, but the idea deserves a closer look.

Follow Katrina Hamlin on Bluesky and LinkedIn.

(Editing by Antony Currie; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on HAMLIN/[email protected]; Reuters Messaging: [email protected]))

** Shares of Maruti Suzuki MRTI.NS close 2% higher at 16,182 rupees, top gainer on Nifty auto index .NIFTYAUTO

** Automaker plans investments worth 350 billion rupees ($3.9 billion) in a plant it plans to set up in the western state of Gujarat

** The plant will add production capacity of up to 1 million vehicles a year and is expected to operate in FY29

** Last week, board approved an initial investment of 49.6 billion rupees to acquire land for the plant

** ICICI Securities says investment strengthens MRTI's long-term growth visibility and reinforce its competitive moat through scale, capacity readiness and an expanded service ecosystem

** Analysts have a "buy" rating on avg; median PT is 18,140 rupees - data compiled by LSEG

** YTD, MRTI down 3.1% vs sub index's 2% decline

($1 = 90.8938 Indian rupees)

(Reporting by Urvi Dugar in Bengaluru)

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AHMEDABAD, India, Jan 17 (Reuters) - Indian automaker Maruti Suzuki MRTI.NS will invest 350 billion rupees ($3.9 billion) in a plant it plans to set up in the western Indian state of Gujarat, the state's government said on Saturday.

The plant will add production capacity of up to 1 million vehicles a year for the automaker as it expands manufacturing to meet rising demand in India, the world’s third-largest car market, and for exports, Gujarat said in a statement.

Production at the plant is expected to begin in financial year 2029 and will add to the annual production capacity of 2.4 million vehicles for Maruti, which is majority-owned by Japan's Suzuki Motor 7269.T and is India's top carmaker by sales.

The company has an order backlog of about one and a half months for its entry-level models, its marketing and sales head, Partho Banerjee, said this month. The company said its sales to domestic dealers rose 37% in December to a record 178,646 units.

Maruti’s board of directors this week approved an initial investment of 49.6 billion rupees to acquire land for the plant.

($1 = 90.6820 Indian rupees)

(Reporting by Sumit Khanna in Ahmedabad; writing by Ira Dugal in Mumbai; Editing by William Mallard)

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Jan 16 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:

• MARUTI SUZUKI - STARTS EXPORTS OF VICTORIS SUV

Source text: ID:nBSE1SlnQn

Further company coverage: MRTI.NS

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Jan 13 (Reuters) - Ashok Leyland Ltd ASOK.NS:

• INDIA AUTO INDUSTRY BODY SIAM - INDIA'S DEC TOTAL DOMESTIC PASSENGER VEHICLE SALES 3,99,216 UNITS

• SIAM - LOOKING AHEAD, INDUSTRY EXPECTS POSITIVE MOMENTUM TO CONTINUE WELL INTO 2026

• INDIA AUTO INDUSTRY BODY SIAM - INDIA'S DEC DOMESTIC 3-WHEELER SALES 61,924 UNITS

• INDIA AUTO INDUSTRY BODY SIAM - INDIA'S DEC DOMESTIC 2-WHEELER SALES 15,41,036 UNITS

• SIAM - WHILE REMAINING WATCHFUL OF GEOPOLITICAL DEVELOPMENTS, INDUSTRY EXPECTS FY2025–26 TO CLOSE ON POSITIVE GROWTH TRAJECTORY

Source text: [ID:]

Further company coverage: ASOK.NS

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Jan 12 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:

• MARUTI SUZUKI - BOARD APPROVES LAND ACQUISITION FOR CAPACITY EXPANSION

• MARUTI SUZUKI - LAND ACQUISITION AND DEVELOPMENT COST 49.60 BILLION RUPEES

Source text: ID:nBSE9NhmhH

Further company coverage: MRTI.NS

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Jan 6 (Reuters) - INDIA AUTODEALERS BODY FADA:

• DEC’25 AUTO RETAIL AT 20,28,821 UNITS

• DEALER SENTIMENT REMAINS FIRMLY POSITIVE, WITH OUR SURVEY INDICATING 70.48% EXPECTING GROWTH

• OVER NEXT 3 MONTHS, RETAIL OUTLOOK REMAINS DECISIVELY UPBEAT

• DEC’25 AUTO RETAIL UP 14.63% YOY

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Jan 1 (Reuters) - Indian automaker Mahindra & Mahindra MAHM.NS reported a 23% rise in the December sales of its sports utility vehicles (SUV) to dealers on Thursday, fuelled by a sustained rise in demand following tax reductions.

In September, India cut the tax on SUVs with engines above 1500 cc to 40% from about 50% to boost demand, a change that applies to most of Mahindra's SUV range.

Market leader Maruti Suzuki MRTI.NS, along with Hyundai India HYUN.NS and Tata Motors TAMO.NS, are yet to report their sales figures.

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Janane Venkatraman)

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** Maruti Suzuki MRTI.NS rises as much as 1.7% on Wednesday to a record high of 16,818 rupees

** Stock trims some gains to last trade 0.6% higher

** The auto-maker is on track to gain the most in a year since 2017, up 53% so far this year

** Yearly rise outperforms Nifty Auto index .NIFTYAUTO, which has risen 22% in 2025

** In September, Indian government announced reduction in goods and services tax (GST) rates on various items, including small cars

** MRTI to benefit from small car uptick where lower tax impact is highest - analysts say

** Avg rating of 38 analysts covering the stock is "buy", median PT is 18,000 rupees - data compiled by LSEG

(Reporting by Brijesh Patel in Bengaluru)

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

• NCLAT POSTPONES HEARING, NEXT DATE TO BE NOTIFIED

Source text: ID:nBSE3ytGgD

Further company coverage: MRTI.NS

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Repeats November 28 story with no changes to text

By Aditi Shah

NEW DELHI, Nov 28 (Reuters) - India's biggest carmakers including Tata Motors and Hyundai want the government to scrap a weight-based emission concession for small cars under planned new efficiency rules, a move they say would benefit just one company, letters seen by Reuters show.

Tata TAMO.NS, Mahindra & Mahindra MAHM.NS, JSW MG Motor and Hyundai HYUN.NS are concerned that a weight-based relief risks hurting India's EV goals while helping a single player, according to individual letters they wrote to the government.

They did not name the player but industry data shows and three auto executives told Reuters that Maruti Suzuki MRTI.NS would be the main beneficiary.

Maruti, the biggest seller of small cars in India, told Reuters that global car markets like Europe, the U.S., China, Korea and Japan all had some provisions in their emission regulations to protect the "very small cars".

'LIMITED POTENTIAL FOR EFFICIENCY IMPROVEMENTS'

Under India's current Corporate Average Fuel Efficiency norms, the quantity of permissible carbon dioxide emissions applies to all passenger cars weighing less than 3,500 kg (7,716 lb).

The new rules propose tightening average CO2 emissions to 91.7 grams/km from an earlier target of 113 grams/km. This will make it tougher for small cars to meet the target compared with large SUVs, pushing companies to sell more EVs.

In its latest draft, India has proposed leniency for petrol cars weighing 909 kg or less, measuring under four meters in length and with engine capacity of 1200 cc or below as they offer "limited potential for efficiency improvements".

This has created a sharp split between India's leading EV-focused companies and Maruti - for whom 16% of sales come from cars weighing under 909 kg - causing delays in finalising the regulation that is crucial for automakers to plan future product portfolios and investments in powertrain technology.

Three company executives told Reuters the 909 kg threshold was arbitrary and did not align with any global standards, alleging that the move only benefitted Maruti Suzuki.

In a letter to India's power ministry, which is drafting the rules, Mahindra requested omission of a "special category" or definitions based on size or weight.

"(This) can have adverse effects in terms of the nation's progress towards safer, cleaner cars, and can alter the level playing field for industry players," it said.

RISKS TO INDUSTRY STABILITY AND CUSTOMERS

Hyundai told the industries ministry in its letter that the exemption may be perceived internationally as a step backward, at a time when global markets are converging toward stricter fuel-efficiency and zero-emission standards.

"Abrupt policy changes favouring a specific segment risk undermining industry stability and customer interests, as future investments and technology rollouts are planned on the basis of established norms," Hyundai said in a statement to Reuters.

JSW MG Motor said that over 95% of cars under 909 kg come from a single carmaker, without naming anyone.

"A relaxation restricted to this weight band would disproportionately benefit one manufacturer," it said in its letter to the road transport ministry dated November 21.

Tata, Mahindra and JSW MG Motor did not respond to a request for comment. India's power, transport and industries ministries also did not respond to requests.

Maruti told Reuters that small cars consume much less fuel and emit less carbon dioxide than bigger cars, so having this "safeguard" will help both CO2 reduction and fuel saving.

About 16% of its sales in India are of cars weighing less than 909 kg but demand has been falling as buyers choose bigger SUVs.

(Reporting by Aditi Shah; Editing by Emelia Sithole-Matarise)

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

By Aditi Shah

NEW DELHI, Nov 28 (Reuters) - India's biggest carmakers including Tata Motors and Hyundai want the government to scrap a weight-based emission concession for small cars under planned new efficiency rules, a move they say would benefit just one company, letters seen by Reuters show.

Tata TAMO.NS, Mahindra & Mahindra MAHM.NS, JSW MG Motor and Hyundai HYUN.NS are concerned that a weight-based relief risks hurting India's EV goals while helping a single player, according to individual letters they wrote to the government.

They did not name the player but industry data shows and three auto executives told Reuters that Maruti Suzuki MRTI.NS would be the main beneficiary.

Maruti, the biggest seller of small cars in India, told Reuters that global car markets like Europe, the U.S., China, Korea and Japan all had some provisions in their emission regulations to protect the "very small cars".

'LIMITED POTENTIAL FOR EFFICIENCY IMPROVEMENTS'

Under India's current Corporate Average Fuel Efficiency norms, the quantity of permissible carbon dioxide emissions applies to all passenger cars weighing less than 3,500 kg (7,716 lb).

The new rules propose tightening average CO2 emissions to 91.7 grams/km from an earlier target of 113 grams/km. This will make it tougher for small cars to meet the target compared with large SUVs, pushing companies to sell more EVs.

In its latest draft, India has proposed leniency for petrol cars weighing 909 kg or less, measuring under four meters in length and with engine capacity of 1200 cc or below as they offer "limited potential for efficiency improvements".

This has created a sharp split between India's leading EV-focused companies and Maruti - for whom 16% of sales come from cars weighing under 909 kg - causing delays in finalising the regulation that is crucial for automakers to plan future product portfolios and investments in powertrain technology.

Three company executives told Reuters the 909 kg threshold was arbitrary and did not align with any global standards, alleging that the move only benefitted Maruti Suzuki.

In a letter to India's power ministry, which is drafting the rules, Mahindra requested omission of a "special category" or definitions based on size or weight.

"(This) can have adverse effects in terms of the nation's progress towards safer, cleaner cars, and can alter the level playing field for industry players," it said.

RISKS TO INDUSTRY STABILITY AND CUSTOMERS

Hyundai told the industries ministry in its letter that the exemption may be perceived internationally as a step backward, at a time when global markets are converging toward stricter fuel-efficiency and zero-emission standards.

"Abrupt policy changes favouring a specific segment risk undermining industry stability and customer interests, as future investments and technology rollouts are planned on the basis of established norms," Hyundai said in a statement to Reuters.

JSW MG Motor said that over 95% of cars under 909 kg come from a single carmaker, without naming anyone.

"A relaxation restricted to this weight band would disproportionately benefit one manufacturer," it said in its letter to the road transport ministry dated November 21.

Tata, Mahindra and JSW MG Motor did not respond to a request for comment. India's power, transport and industries ministries also did not respond to requests.

Maruti told Reuters that small cars consume much less fuel and emit less carbon dioxide than bigger cars, so having this "safeguard" will help both CO2 reduction and fuel saving.

About 16% of its sales in India are of cars weighing less than 909 kg but demand has been falling as buyers choose bigger SUVs.

(Reporting by Aditi Shah; Editing by Emelia Sithole-Matarise)

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

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

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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)

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Repeats Thursday item with no change to text

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))

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.

(Reporting by Meenakshi Maidas and Bharath Rajeswaran in Bengaluru; Editing by Janane Venkatraman)

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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)

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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)

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** 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)

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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)

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