MARUTI

Adds details paragraph 2 onwards

Oct 7 (Reuters) - Indian dealers' auto sales grew 5.2% year-on-year in September, with upbeat growth across two-wheelers and passenger vehicles, as tax cuts boosted demand during the festive season, the Federation of Automobile Dealers Associations said on Tuesday.

While sales were muted in the first three weeks of September, they surged after September 22, when the revised goods and services tax rates took effect, the auto dealers association said.

Two-wheeler sales climbed 6.5% from a year earlier, while passenger vehicle sales grew 5.8%.

Dealers posted record high sales during the nine-day Navratri festival, the association said, with a 34% year-on-year jump during the period, as a wave of new customers entered showrooms and existing ones upgraded their vehicles, taking advantage of lower taxes and festive schemes.

The auto dealers body expects an above-normal monsoon, strong harvest, and steady lending rates to boost purchasing power of consumers, driving demand.

It also expects "peak sales" during the Diwali festival in October, when Indians typically tend to make high-value purchases.

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

(([email protected]; 8800437922;))

** 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)

(([email protected]))

By Aditi Shah

VITHALAPUR, India, Oct 2 (Reuters) - In India's Gujarat, eating meat or seafood is frowned upon, but in the state's dusty industrial town of Vithalapur, hotels with names like Osaka Palace are churning out ramen and tempura - all to please the Japanese auto engineers and managers who now reside in them.

The transformation of Vithalapur's farmlands, which lie 75 km (46 miles) east of the state capital of Gandhinagar, owes much to increased foreign investment in Indian manufacturing - one of Prime Minister Narendra Modi's key policy planks.

Honda's 7267.T motorcycle unit first started production in Vithalapur nearly a decade ago, while Suzuki 7269.T has an eight-year-old plant that started rolling out its first electric cars in August. A bevy of auto-related suppliers and other industrial Japanese companies have also set up shop.

Direct investment from Japan in India hit $2.5 billion for the year ended March 31, an increase of 27% from four years ago, government data shows, with much of it going towards the auto and electronics sectors.

Not far from Vithalapur's factories, Mizuki Ryokan and Midori are among half a dozen highway hotels that are thriving, home to Japanese staff now in India on multi-year contracts. Such has been the town's growth that Hyatt H.N is set to open a 108-room property this year.

But coming to Gujarat, Modi's home state, can pose a major cultural shock for many Japanese. Many Gujaratis are very strict about practicing vegetarianism due to Jain and Hindu religious and cultural beliefs. The state is also one of a small number of Indian states that ban alcohol, making only a few tightly regulated exceptions for foreigners.

Early efforts by Japanese expats to acclimate in regular housing in nearby cities did not pan out, with the lack of easy access to meat and fish often proving too much.

The 110-room AJU Imperial, where AJU stands for All Japanese Utility, seeks to provide home comforts like signage in Japanese, sushi made with fish imported from as far as Australia and Toto 5332.T washlet toilets - an expensive indulgence by Indian standards.

"We wanted to give people the comfort of place and food so they can focus on work," said Prakash Yadav, founder and managing director of the hotel, which hosts around 100 expats at any one time.

But the state's restrictions on alcohol consumption remain a challenge for expats, said Yadav.

To enjoy liquor, Gujarat requires foreigners and hotels to obtain special government permits, which are issued after a lengthy process and need to be renewed often. Even then, the amount they can buy each month is rationed.

Yadav has been waiting for an alcohol permit since 2019 so he can set up a liquor store in his hotel.

"Until we get a license, guests have to drive three hours to Ahmedabad city to buy their monthly stock."

(Reporting by Aditi Shah; Additional reporting by Aditya Kalra in New Delhi and Daniel Leussink in Tokyo; Editing by Edwina Gibbs)

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

Oct 1 (Reuters) - Indian automaker Mahindra & Mahindra MAHM.NS said on Wednesday that its sales of sports utility vehicles to dealers in September rose 10% year-on-year, after a fall in August, helped by consumption tax cuts and festive demand.

Last month, India’s federal government slashed the goods and services tax (GST) on SUVs with engine capacities above 1500 cc to 40% from an effective rate of 50%, as part of an effort to boost consumption and support growth amid headwinds from trade tensions with U.S.

The revision eased the burden on premium models like Mahindra’s Scorpio and XUV700.

Mahindra said SUV sales during the first nine days of the auspicious Navratri festival, which ran from September 22 to October 1, rose over 60% year-on-year.

The festival months of September to October are also when consumer spending across sectors, from automobiles and electronics to FMCG, rises.

In August, the automaker reported its first decline in SUV sales to dealers in over three years as it awaited the government's decision to lower goods and services taxes.

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

(Reporting by Yagnoseni Das in Bengaluru)

(([email protected];))

By Aditi Shah

NEW DELHI, Sept 26 (Reuters) - India has proposed relaxing stringent fuel efficiency norms for small cars, according to a draft of the new rules made public late on Thursday, sending shares of small carmaker Maruti Suzuki MRTI.NS to a record high.

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

The Bureau of Energy Efficiency has proposed some leniency for petrol cars weighing 909 kg or less and measuring under four meters (13.12 feet) in length, in a departure from an industry consensus that did not differentiate on the basis of weight.

"Considering the limited potential for efficiency improvements" in small petrol cars, they will be eligible to claim additional carbon saving benefits, it said in the draft.

Shares in Maruti rose as much as 1.02% to a record high of 16,435 rupees ($185.3) on Friday as it dominates the country's small car segment with popular models like Alto-K10, Wagon-R, S-Presso, Celerio and Ignis that stand to gain.

Fuel efficiency rules are designed to incentivise higher sales of low-emission car models, mainly electric, if companies want to avoid paying penalties for non-compliance. Relaxing the limits for small cars means less pressure to electrify them.

The leniency for small cars comes despite pushback from some carmakers who told Reuters in June that any preferential treatment could be seen as giving Maruti an unfair advantage in the world's third-largest car market.

All stakeholders have been asked to submit their comments within 21 days, after which the rules will be finalised and come into force for a five-year period starting April 1, 2027.

(Reporting by Aditi Shah; Editing by Saad Sayeed)

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

** Shares of Maruti Suzuki MRTI.NS rise as much as 1.5% on Friday to a record high of 16060 rupees

** The auto-maker is set to rise for a seventh straight week, its longest such run in two years

** Over the past seven weeks, MRTI has surged nearly 30%.

** The rally has been supported by the Indian government’s recent announcement of reduced goods and services tax (GST) rates on various items, including small cars, a move analysts say will benefit MRTI

** On Thursday, the automaker announced price cuts aligned with the lower tax rates

** Avg rating of 38 analysts covering the stock is "buy", their median PT is 14616.50 rupees - data compiled by LSEG

** YTD, MRTI is up 46%, outperforming the Nifty Auto index .NIFTYAUTO, which has risen 20% in 2025.

(Reporting by Nishit Navin in Bengaluru)

(([email protected]))

Sept 15 (Reuters) - Ashok Leyland Ltd ASOK.NS:

• SIAM - INDIA'S AUGUST 2-WHEELER SALES 18,33,921 UNITS

• SIAM - INDIA'S AUGUST 3-WHEELER SALES 75,759 UNITS

• INDIA AUTO INDUSTRY BODY SIAM - INDIA'S AUGUST TOTAL DOMESTIC PASSENGER VEHICLE SALES 3,21,840 UNITS

Source text: [ID:]

Further company coverage: ASOK.NS

(([email protected];;))

** Citi calls passenger vehicles its top auto pick, betting on "trifecta of tailwinds" - lower income tax, GST and interest rates

** Brokerage expects "long-awaited uptick in PV demand" from policy changes

** Lifts FY26 car sales growth forecast to 2.1% from 1.3%, with higher FY27-FY28 estimates

** Maruti Suzuki MRTI.NS is top pick, followed by Mahindra & Mahindra MAHM.NS and Hyundai India HYUN.NS

** Hikes PTs: MRTI to 17,500 from 14,400 rupees; MAHM to 4,170 from 3,700 rupees; HYUN to 2,900 from 2,400 rupees

** * MRTI to benefit from small car uptick where lower tax impact is highest; MAHM, HYUN gain from reduced SUV rates - Citi

** All firms rated "buy" on average - data compiled by LSEG

** YTD, MRTI, HYUN both up 41%; MAHM gains 19%; Nifty auto .NIFTYAUTO up 18%; benchmark Nifty 50 .NSEI up 6%

(Reporting by Nandan Mandayam in Bengaluru)

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

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

By Ujjaini Dutta

BENGALURU, Sept 11 (Reuters Breakingviews) - Prime Minister Narendra Modi’s administration is undermining its own electric-vehicle policy - again. The goal, set in 2017, is for battery-powered rides to make up 30% of new vehicle sales by 2030, from the current 7.6%. That was already looking tough. New Delhi’s decision last week to slash goods and sales taxes on petrol, diesel and hybrid rides makes it even more difficult.

There are logical reasons for reducing the GST – to 18% from 28% for small cars and to 40% from effectively up to 50% for larger models like SUVs. Perhaps chief among them is that crawling real income growth has left the world’s third-largest market for new vehicles sputtering, with passenger vehicles expanding just 2% overall in the 12 months to the end of March, according to the Society of Indian Automobile Manufacturers, compared with 8.4% in the year ended March 2024 and 26.7% in March 2023.

The prospect of the changes kickstarting sales has boosted carmakers. Shares in India's leading small-car maker Maruti Suzuki MRTI.NS have soared nearly 17% since Modi first mentioned impending tax cuts last month, while those of Hyundai Motor India HYUN.NS jumped over 11%. Last week’s inclusion of large cars in the tax break had Mahindra & Mahindra’s MAHM.NS stock quickly catch up, too.

On the face of it, the GST reductions might not seem to matter for EVs, whose levy remains unchanged at the lowest 5% rate. And the battery-powered models currently available in the market target less price-sensitive customers, an analyst at HDFC Securities told Breakingviews.

But a sudden reduction in sticker prices for fossil fuel-powered cars across the board has several negative effects for EVs. It makes it even harder for them to break into the cheaper end of the market: India’s entry-level electric cars cost nearly double Maruti Suzuki’s popular small-car models, for instance.

Meanwhile, lower sticker prices for higher-end models could sway those wavering between an EV and a petrol-powered SUV. The more buyers plump for internal combustion engines and hybrids, the more delays there could be in reducing the Indian EV market’s headwinds, from limited models to choose from to patchy charging infrastructure.

That adds to speed bumps New Delhi and regional governments have already put in the way, like offering subsidies or removing registration fees for hybrid vehicles. Cheaper gas guzzlers makes Modi’s 2030 target look even more remote.

Follow Ujjaini Dutta on Linkedin and X.

CONTEXT NEWS

Indian Finance Minister Nirmala Sitharaman on September 3 announced goods and services tax cuts on consumer items, including small cars, simplifying the system to a two-rate structure of 5% and 18%, instead of four rates currently.

GST on small cars is reduced to 18% from 28%. Mid-size and large cars are now taxed at 40%, down from as much as 50%. Electric vehicles are still taxed at 5%. The new rates will be effective September 22.

(Editing by Antony Currie; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))

Updates shares in paragraph 2, adds new quotes

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

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

Here is how the industry has reacted so far:

ANISH SHAH, GROUP CEO & MD, MAHINDRA GROUP

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

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

SAURABH AGARWAL, PARTNER & AUTOMOTIVE TAX LEADER, EY INDIA

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

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

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

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

NILESH SHAH, MANAGING DIRECTOR, KOTAK MAHINDRA ASSET MANAGEMENT CO

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

SHAILESH CHANDRA, PRESIDENT, SOCIETY OF INDIAN AUTOMOBILE MANUFACTURES

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

C S VIGNESHWAR, PRESIDENT, FEDERATION OF AUTOMOBILE DEALERS ASSOCIATIONS

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

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

SANJEEV ASTHANA, CEO, PATANJALI FOODS LIMITED

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

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

RADHIKA RAO, SENIOR ECONOMIST AT DBS BANK

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

SHRIPAL SHAH, MD & CEO, KOTAK SECURITIES

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

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

DEVARSH VAKIL, HEAD OF PRIME RESEARCH, HDFC SECURITIES

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

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

SUDARSHAN VENU, CHAIRMAN, TVS MOTOR COMPANY

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

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

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

NITIN RAO, CEO, INCRED WEALTH

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

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

RAHUL SINGH, CIO-EQUITIES, TATA ASSET MANAGEMENT

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

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

RAJNEESH KUMAR, CHIEF CORPORATE AFFAIRS OFFICER, FLIPKART GROUP

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

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

SHEETAL ARORA, CEO, MANKIND PHARMA

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

AMIT PAITHANKAR, CEO OF WAAREE ENERGIES

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

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

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

By Nikunj Ohri

NEW DELHI, Sept 3 (Reuters) - Indian state and federal ministers will meet for two days from Wednesday to weigh the biggest cuts to consumption tax in eight years, aimed at spurring domestic demand in the face of economic headwinds from U.S. tariffs.

Coupled with cuts in personal tax unveiled in February, the cuts in the Goods and Services Tax (GST) are expected to boost consumption in the South Asian nation, whose economy grew at an unexpectedly higher pace of 7.8% in the quarter to June.

A panel on the tax, headed by Finance Minister Nirmala Sitharaman with ministers from all Indian states, will decide on a plan to cut the tax on more than 400 items, ranging from hair oil to small cars.

"With U.S. tariffs clouding exports in textiles, autos and possibly pharmaceuticals, India must pivot towards domestic consumption as the primary growth engine," said Manoj Mishra, a partner at Grant Thornton Bharat LLP.

The move is expected to boost sales of FMCG firms such as Hindustan Unilever and Godrej Industries, and consumer electronics companies such as Samsung Electronics 005930.KS, LG Electronics 066570.KS and Sony 6758.T.

Among automakers Maruti, Toyota Motor 7203.T and Suzuki Motor 7269.T are expected to be big winners.

The rush to cut the tax was triggered by Prime Minister Narendra Modi's call for greater self-reliance, when he vowed to lower GST by October, aiming to counter the U.S. tariffs of up to 50%.

TWO RATES INSTEAD OF FOUR

The ministers will consider a two-rate structure of 5% and 18%, instead of four now, with additional tax bands of 12% and 28%. It will also consider a higher tax of 40% on some luxury and "sin" goods such as cigarettes.

The plan is to sweep into the 5% category all items of daily use now in the category of 12%.

The panel will also consider lowering taxes on consumer items such as toothpaste and shampoo to 5% from 18%, and on small cars, air conditioners, and televisions to 18% from 28%.

Economists expect the cuts to cost $21 billion in revenue losses, with states set to lose more than the federal government.

While the states are broadly on board, there could be heated discussion on ways to make up their loss of revenue.

The panel is likely to discuss raising taxes on high end electric vehicles priced at more than 2 million rupees.

It will also consider raising tax to 18% from 12% on apparel priced above 2,500 rupees ($29), which would affect the premium offerings of Marks and Spencer MKS.L, Levi Strauss LEVI.N, and Zara.

Taxes on air travel in the premium and business classes could also go to 18% from 12%.

($1=87.5060 Indian rupees)

(Reporting by Nikunj Ohri; Editing by Clarence Fernandez)

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

Aug 29 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:

• FORAYS INTO STATE OF TELANGANA IN PARTNERSHIP WITH MARUTI SUZUKI INDIA

Source text: ID:nBSE2jVS6H

Further company coverage: MRTI.NS

(([email protected];;))

Aug 28 (Reuters) - Maruti Suzuki India Chairman At AGM:

• HOPEFUL THAT TAX RATE ON SMALL CARS WILL REDUCE TO 18%

• LOWER TAX RATES ON CARS NEEDED WITH U.S. TARIFFS CAUSING DISRUPTION IN OTHER INDIAN INDUSTRIES

Further company coverage: MRTI.NS

(([email protected];))

Aug 26 (Reuters) - Suzuki Motor Corp Exec:

• SUZUKI MOTOR EXEC: GUJARAT PLANT WITH CAPACITY OF 1 MILLION CARS IS SURE TO BECOME MAJOR PRODUCTION HUB

• SUZUKI MOTOR EXEC: SUZUKI WILL INVEST 700 BILLION RUPEES IN INDIA OVER NEXT 5-6 YEARS

• SUZUKI MOTOR EXEC: ACHIEVED MAJOR MILESTONE WITH START OF LITHIUM ION BATTERY CELLS PRODUCTION FOR OUR HYBRID CARS

Further company coverage: 7269.TMRTI.NS

(([email protected];))

Aug 18 (Reuters) - India's proposal to rationalise goods and services tax is a "huge reform", which is bound to have good outcomes, RC Bhargava, chairman of the country's top carmaker Maruti Suzuki MRTI.NS, told Reuters on Monday.

The restructuring will increase competitiveness of Indian products and the opening of trade borders will bring in the necessary competition, which will help expand the market and benefit customers, he said.

India's federal government has suggested lowering the goods and services tax on small cars to 18% from 28%, as part of its sweeping consumption tax cuts, Reuters reported on Monday, citing a government source.

(Reporting by reporting by Aditi Shah in New Delh; Writing by Kashish Tandon; Editing by Mrigank Dhaniwala)

(([email protected]; 8800437922;))

By Nikunj Ohri, Aftab Ahmed and Aditya Kalra

NEW DELHI, Aug 17 (Reuters) - Indian Prime Minister Narendra Modi's deepest tax cuts in eight years will strain government revenues but are winning praise from businesses and political pundits who say they will bolster his image in an ongoing trade fight with Washington.

In the biggest tax overhaul since 2017, Modi's government on Saturday announced sweeping changes to the complex goods and services tax (GST) regime which will make daily essentials and electronics cheaper from October, helping consumers and also companies like Nestle, Samsung and LG Electronics.

At the same time, in his Independence Day speech on Friday, Modi urged Indians to use more goods made domestically, echoing calls from many of his supporters to boycott U.S. products after Donald Trump hiked tariffs on imports from India to 50% as of August 27.

The tax cut plan comes with costs given GST is a major revenue generator. IDFC First Bank says the cuts will boost India's GDP by 0.6 percentage points over 12 months but will cost the state and federal government $20 billion annually.

But it will improve weak stock market sentiment and bring political dividends for Modi ahead of a critical state election in the eastern state of Bihar, said Rasheed Kidwai, a fellow at New Delhi-based Observer Research Foundation.

"GST reduction will impact everyone, unlike cuts to income tax, which is paid by only 3%-4% of the population. Modi is doing this as he is under a lot of pressure due to U.S. policies," said Kidwai.

"The move will also help the stock market, which is now politically important as it has a lot of retail investors."

India launched the major tax system in 2017 that subsumed local state taxes into the new, nationwide GST to unify its economy for the first time.

But the biggest tax reform since India's independence faced criticism for its complex design that taxes products and services under four slabs - 5%, 12%, 18% and 28%.

Last year, India said caramel popcorn would be taxed at 18% but the salted category at 5%, triggering criticism about a glaring example of GST's complexities.

Under the new system, India will abolish the 28% slab - which includes cars and electronics - and move nearly all of the items under the 12% category to the lower 5% slab, benefitting many more consumer items and packaged foods.

Government data shows the 28% and 12% tax slabs together garner 16% of India's annual GST revenue of roughly $250 billion last fiscal year.

'A BRIGHTER GIFT' AND POLITICS

Bihar is a key state politically and goes to the polls by November. A recent survey by the VoteVibe agency showed Modi's opposition has an edge largely because of a lack of jobs.

"Any tax cut has wide public appreciation. But of course, the timing is purely determined by political exigencies," said Dilip Cherian, a communications consultant and co-founder of Indian public relations firm Perfect Relations.

"It seems to be an indication of some mixture of frustration as well as recognition that there is a broad public pushback against high and crippling rates of taxation."

Modi's ruling Bharatiya Janata Party has seized on his tax announcement, posting on X that on the Hindu festival of lights, Diwali, "a brighter gift of simpler taxes and more savings is waiting for every Indian."

Modi has vowed to protect farmers, fishermen and cattlemen, following Trump's surprise tariff announcement on India, after trade talks between New Delhi and Washington collapsed over disagreement on opening India's vast farm and dairy sectors and stopping Russian oil purchases.

The latest round of trade talks between the two nations set for August 25-29 has also been called off.

($1 = 87.5080 Indian rupees)

(Reporting by Nikunj Ohri, Aftab Ahmed and Aditya Kalra; Editing by Sonali Paul)

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

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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** India's largest carmaker Maruti Suzuki MRTI.NS trading ~0.5% lower ahead of Q1 results

** Analysts expect the company to report a nearly 15% y/y decline in standalone profit

** Domestic sales at the company, owned by Japan's Suzuki Motor 7269.T, declined 6% during the quarter, sales data shows, led by a 10% decline in small car dispatches

** Overall sales rose 1.1%, with a 37% jump in exports cushioning the impact of domestic decline

** Bob Capital Markets said it expects margins to be flat as the company has undertaken two price hikes to pass on commodity cost increases

** Adds, domestic volumes revival expected to be slow due to weakness in small cars segment

** Reuters reported in June that Maruti Suzuki has cut near-term production targets for its maiden electric vehicle, the e-Vitara, by two-thirds because of rare earth shortages from China's export curbs

(Reporting by Ananta Agarwal in Bengaluru)

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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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July 7 (Reuters) -

• INDIA AUTODEALERS BODY FADA: CAUTIOUSLY OPTIMISTIC VIEW FOR NEAR TERM

• INDIA'S FADA: RARE-EARTH SHORTAGES, GEOPOLITICAL TENSIONS & US-TARIFF SPILL-OVERS DEMAND VIGILANCE

• INDIA'S FADA: CHALLENGES IN SECURING RARE-EARTH MATERIALS STALLED COMPONENT PRODUCTION

• INDIA'S FADA: IN NEAR TERM, ABOVE-NORMAL MONSOON RAINS SHOULD BOLSTER RURAL DEMAND

• INDIA AUTODEALERS BODY FADA: JUNE PASSENGER VEHICLE RETAIL SALES ROSE 4.84 % Y/Y

• INDIA AUTODEALERS BODY FADA: JUNE TWO-WHEELERS RETAIL SALES UP 4.73% Y/Y

• INDIA AUTODEALERS BODY FADA: JUNE COMMERICAL VEHICLE RETAIL SALES ROSE 6.60% Y/Y

• INDIA'S FADA: AS WE ENTER JULY 2025, DEALER SENTIMENT APPEARS TILTED TOWARDS SLOWDOWN

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

• MARUTI SUZUKI INDIA - JUNE TOTAL SALES 167,993 UNITS

Source text: ID:nnAZN42MIQH

Further company coverage: MRTI.NS

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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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