MARUTI

June 15 (Reuters) -

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

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

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

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

Further company coverage: ASOK.NS

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Adds sector details paragraph 2 onwards

June 12 - India's Tata Motors Passenger Vehicles TAMO.NS will raise prices of its cars and SUVs, including electric vehicles, by up to 1.5% from July 1, the carmaker said on Friday, its second price hike in four months as cost pressures from the Middle East conflict bite.

The company increased prices for its internal combustion engine portfolio from April 1.

The Sierra brand maker said the price increase was aimed at partially offsetting rising input costs and sustained inflationary pressures and that the extent of the increase will vary across models and variants.

Earlier this year, rival automaker Maruti Suzuki said it would raise vehicle prices by up to 30,000 rupees ($314.42) from June, while Hyundai Motor India HYUN.NS increased prices from June 1.

Commercial vehicle maker Tata Motors TATM.NS raised prices of its commercial vehicles by up to 1.5% from April 1, citing higher input costs.

($1 = 95.4125 Indian rupees)

(Reporting by Mridula Kumar in Bengaluru; Editing by Harikrishnan Nair)

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

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

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

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

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

Source text: [ID:]

Further company coverage: ASOK.NS

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June 5 (Reuters) - India will start rolling out gasoline blended with 85% ethanol (E85) that will be about 20 rupees per litre cheaper than regular E20 fuel, Oil Minister Hardeep Singh Puri said on Friday.

Indian automakers have started launching flex-fuel vehicles that are compatible with the higher ethanol variant.

• E85 fuel will be cheaper than E20 due to its lower calorific value, Puri said. E20 sells for about 102 rupees ($1.07) per litre in New Delhi.

• India plans to roll out E85 at 50 to 100 fuel stations in 2026, scaling up to around 5,000 outlets by 2027, he added.

• E85 fuel is intended for flex-fuel vehicles, which can operate on gasoline blended with high amounts of ethanol.

• Puri said automakers and automobile industry associations are on board for the launch.

• Automakers such as Maruti Suzuki MRTI.NS and Hero MotoCorp HROM.NS have rolled out flex-fuel compatible variants of their popular WagonR and Splendor models.

• E85 fuel will help cut pollution and reduce the country's reliance on imported oil, Puri said.

• India, the world's third-largest oil importer and consumer, currently sells gasoline blended with 20% ethanol.

• Earlier in April, India proposed allowing higher ethanol blends such as E85 and E100 under vehicle rules.

• The move followed its 2025 achievement of 20% ethanol blending and aims to further reduce reliance on fuel imports.

• The Indian government faced a backlash from motorists after the nationwide rollout, on fears that it may affect the performance of vehicles.

• Separately, India's oil secretary Neeraj Mittal on Friday said the government is working on a programme to boost compressed biogas production.

($1 = 94.9450 Indian rupees)

(Reporting by Bipasha Dey in Bengaluru and Nidhi Verma in New Delhi; Editing by Sahal Muhammed)

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By Vibhuti Sharma

MUMBAI, June 4 (Reuters) - India's red-hot initial public offering market may look irresistible as foreign firms line up for listings, but the rush is not about raising funds to expand in a fast-growing market; it's about sending billions of dollars back to headquarters.

Just one of six foreign-based companies that listed their Indian units in Mumbai since 2024 raised new funds, with all others structured purely as secondary offerings - or offer for sale (OFS), where existing shareholders sell their holdings to the public without raising any new funds, according to data from Prime Database, an Indian market research firm.

Foreign-based parents of companies that have long invested in India pocketed nearly $5 billion through such secondary-offering IPOs, with Hyundai Motor 005380.KS and LG Electronics 066570.KS accounting for more than 80% of those payouts, the data showed. Simply put, for each dollar raised in these IPOs taken together, more than $59 went out.

And the trend is continuing: the planned $1 billion IPO of Walmart's WMT.O Indian payments arm and Modern Times Group's MTGb.ST $335 million IPO of its local gaming unit will both take the OFS route.

This week, Coca-Cola KO.N said the planned listing of its Indian bottler will have the American firm sell a portion of its stake. Banking sources said Carlsberg's CARLb.CO planned Indian IPO will also have no new funds raised - it will also be an OFS.

The trend, which bankers and economists say is a result of sky-high stock valuations in India in recent years, shows that the prospect of a lucrative partial exit from Indian investments has become more attractive to many foreign companies than raising new funds to expand.

Global companies are pursuing "India listings as this provides them liquidity as well as a positive impact on the market cap for their parent," said Prashant Gupta, a partner at law firm Shardul Amarchand, which advised both Hyundai and LG on their OFS-structured IPOs.

Modern Times declined to comment, while Carlsberg said it is "exploring different options for increasing shareholder value which may potentially include an" Indian IPO.

Walmart's Indian unit, PhonePe, Hyundai, LG and other companies did not respond to Reuters requests for comment.

RUPEE WOES

The OFS trend comes at a troubling time for the Indian rupee, which has fallen 13% against the U.S. dollar since 2024 and 6% so far this year. That has raised concerns that the IPO-linked repatriations are compounding already heavy foreign capital outflows.

In January, MUFG Bank wrote that its analysis "shows one important contributor to Indian rupee weakness has been the strong IPO market in India."

So far this year, foreign portfolio investors have sold more than $23 billion of their holdings, surpassing 2025's record outflows of $18.9 billion.

IPO-linked capital outflows are "exerting a steady, though not abrupt, depreciation bias on the rupee," said Tanay Dalal, a senior vice president of business and economics research at Axis Bank.

Government officials and regulators have not indicated that they would try to curb the OFS trend, though India's Chief Economic Advisor V Anantha Nageswaran warned in November that IPOs had "increasingly become exit vehicles for early investors rather than mechanisms for raising long-term capital."

"This undermines the spirit of public markets," he said. He did not respond to Reuters queries.

THE VALUATIONS GAME

India was the world's second-largest IPO market in 2025 after the U.S., with 367 listings raising $21.8 billion, according to LSEG data. Its markets surged to record highs over the last two years before starting to struggle this year due to uncertainties related to the U.S.-Israeli war on Iran.

Still, a record $26 billion worth of IPOs are awaiting approvals, according to regulatory data.

The appeal for using the OFS route is rooted in valuations.

Indian-listed units of foreign firms have consistently traded at multiples that dwarf their parents. Add to that a growing group of domestic investors that has resulted in high valuations in India over the past two years, making local listings attractive, lawyers and bankers said.

At least six foreign companies that listed their Indian units in recent years trade at a significant premium to their overseas parents, according to LSEG data.

Nestle India, which listed in 1969, has a price-to-earnings ratio - a measure of stock valuations relative to profit - of nearly 77 times, versus 22 times for Swiss parent Nestle NESN.S. LG Electronics India LGEL.NS, which listed last year, trades at nearly 59 times versus 44 times for its South Korean parent, LG Electronics 066570.KS.

On the day Hyundai 005380.KS listed its Indian unit in 2024, it was valued at about $18 billion, roughly 40% of its parent's market capitalisation.

"What's driving this is smart capital allocation - asset owners capitalizing on cross-market valuation arbitrage," said Abhishek Gang, a director at U.S.-based investment bank Houlihan Lokey.

Since 2024, the IPOs of the Indian units of Italian transmission systems maker Carraro CARD.NS, Norwegian consumer goods group Orkla ORKL.NS, and American auto parts maker Tenneco Clean Air TENN.NS all had OFS structures.

Only one - Britain-based Bupa's India unit, Niva Bupa Health Insurance NIVA.NS - structured its local IPO as a mix of fresh fundraising of $84 million and a larger $146 million OFS component.

"The final structure balanced the company's capital requirements with shareholder objectives, with the fresh capital supporting growth plans and the OFS providing partial liquidity to existing investors," Niva Bupa said in a statement to Reuters.

(Reporting by Vibhuti Sharma in Mumbai; Editing by Aditya Kalra and Thomas Derpinghaus)

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

• MARUTI SUZUKI - DOMESTIC SALES HIT RECORD 193,535 UNITS IN MAY 2026

• MARUTI SUZUKI INDIA - MAY 2026 TOTAL SALES 242,688 UNITS

Source text: ID:nBSE19ffWq

Further company coverage: MRTI.NS

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By Aditi Shah

May 26 (Reuters) - Greetings from New Delhi! For years, the global auto industry has tried to convince investors that the future will be defined by software, electric vehicles and self-driving technology.

This week, Stellantis STLAM.MI delivered a reality check.

The carmaker unveiled a €60 billion ($70 billion) strategy that leans heavily on partnerships and pragmatism over ideology. Meanwhile, Volkswagen VOWG.DE was forced to reassure workers that it was not handing over excess European factory capacity to Chinese rivals. And Japan found itself squeezed again by Beijing over rare earths - a reminder that the future of mobility still depends as much on geopolitics, supply chains and technology as it does on China.

In other news, the pressure from high fuel prices and shipping disruptions triggered by the Iran war is beginning to reshape markets from Pakistan to Japan and forcing India’s biggest carmaker Maruti Suzuki to adopt austerity measures.

Which brings us to today’s Auto File…

Stellantis’ new era of alliances under Antonio Filosa

Volkswagen tries to calm nerves over China

China tightens its grip on rare earths, again

Stellantis embraces partnerships in €60 billion reset

Stellantis laid out a sweeping €60 billion strategy this week that marks a clear shift under new CEO Antonio Filosa.

Unlike former CEO Carlos Tavares, whose strategy relied heavily on internal execution and aggressive cost cutting, Filosa is leaning into partnerships to reduce costs and accelerate product development timelines.

The group plans to launch 60 new models by 2030 spanning combustion engine, hybrid and electric vehicles, while also simplifying platforms and trying to monetize its chronic problem of excess factory capacity.

The list of partners says a lot about where the industry is heading.

On manufacturing, Stellantis is expanding ties with Chinese automakers Leapmotor and Dongfeng, while also working with Tata Motors and Jaguar Land Rover in the United States. On technology, it is relying on companies such as Qualcomm, Applied Intuition and British self-driving startup Wayve.

The message from Filosa is clear: legacy automakers can no longer afford to do everything themselves.

That may end up being the most important takeaway for others as well.

Recommended reading:

• Mercedes-Benz plans to launch its version of assisted driving in Germany by 2026-end as Europe’s autonomous driving race intensifies with Tesla in the lead

• Pakistan’s Lucky Motors has partnered with China’s GAC as it bets that war-triggered fuel shocks will accelerate EV adoption

• Geely will launch its first gasoline engine car in South Africa, with more to come, as it looks beyond EVs in a market where petrol still rules

• Ferrari’s long-awaited electric vehicle debut landed with a thud

Volkswagen walks a tightrope on China and overcapacity

Volkswagen CEO Oliver Blume used a workers’ assembly this week to publicly deny reports that the German automaker was in talks with Chinese manufacturers about using excess factory capacity in Europe. You can read more here.

The fact that he had to address the issue at all says a great deal about the anxiety inside Europe’s largest automaker. Volkswagen is grappling with a painful reality confronting much of Europe’s auto industry: too many factories, weak demand and rising Chinese competition.

Blume acknowledged that Volkswagen still has excess capacity in Europe and Germany and that the issue must be addressed to remain competitive. But he also tried to reassure workers that there were “currently no plans or discussions with Chinese manufacturers.”

But the economic pressure is only growing.

Stellantis has openly embraced partnerships with Chinese firms to help fill unused capacity. Volkswagen, for now, is trying to buy itself time.

China halts rare earth exports in tiff with Japan

China has halted exports of several heavy rare earth materials to Japan since January, according to Chinese customs data and industry sources, reviving memories of the geopolitical standoff between the two countries in 2010.

The timing is striking as it coincides with a broader deterioration in relations between Beijing and Tokyo over Taiwan and mirrors China’s restrictions with the United States during the recent trade tensions.

The move matters enormously for the auto industry. Japan remains the world’s largest producer of rare earth magnets outside China, but it is still heavily dependent on Chinese supply for key materials such as dysprosium and terbium used in electric motors, aerospace systems and advanced electronics.

For automakers already struggling with geopolitical fragmentation, tariff uncertainty and supply-chain shocks, rare earths are becoming another reminder that the transition to EVs is deeply tied to resource security, and China.

Fast laps

Japanese auto exports to the Middle East plunged more than 90% in April as the Iran conflict disrupted shipping routes through the Strait of Hormuz, highlighting how exposed global automakers remain to geopolitical shocks. This is a key region for the likes of Toyota and Nissan.

India’s Maruti Suzuki has introduced some austerity measures to curb the use of petrol as fuel prices remain elevated. Employees have been advised to work from home on some days, if possible, carpool to save fuel and cut down on non-essential air travel.

SpaceX unveiled plans for what could become the first trillion-dollar U.S. IPO, underscoring the growing financial and technological overlap between Elon Musk’s businesses, including Tesla.

(Editing by Emelia Sithole-Matarise)

May 21 (Reuters) - India's top carmaker, Maruti Suzuki MRTI.NS, said on Thursday that it would increase the prices of its vehicles by up to 30,000 rupees ($311.85) from June 2026, citing inflationary pressures and a persistent adverse cost environment.

($1 = 96.2000 Indian rupees)

(Reporting by Urvi Dugar in Bengaluru; Editing by Mrigank Dhaniwala)

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May 18 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:

• MARUTI SUZUKI - COMMENCES COMMERCIAL PRODUCTION AT SECOND KHARKHODA PLANT WITH 250,000 UNITS CAPACITY

Source text: ID:nBSE1Bf95N

Further company coverage: MRTI.NS

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May 14 -

• INDIA'S APRIL TOTAL DOMESTIC PASSENGER VEHICLE SALES UP 25.4% Y/Y -INDUSTRY BODY

• INDIA'S APRIL TOTAL DOMESTIC PASSENGER VEHICLE SALES AT 437,312 UNITS - INDUSTRY BODY

• INDIA'S APRIL TOTAL TWO-WHEELER SALES UP 28.4% Y/Y AT 18,72,691 UNITS - INDUSTRY BODY

• INDIA AUTO INDUSTRY BODY SIAM SAYS THOUGH THERE ARE CONCERNS OF HIGH COMMODITY PRICES DISRUPTIONS IN WEST ASIA, INDUSTRY WITNESSING GOOD DEMAND

Source text: [ID:]

May 6 (Reuters) - Bharat Seats Ltd BSTS.NS:

• BHARAT SEATS- APPROVED CAPEX OF ABOUT 866.1 MILLION RUPEES FOR NEW PROGRAMMES OF MARUTI SUZUKI INDIA

Source text: ID:nBSE8KRzXP

Further company coverage: BSTS.NS

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Rewrites throughout with industry executive's comments, background

By Kashish Tandon

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

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

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

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

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

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

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

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

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

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

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

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

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** Maruti Suzuki India MRTI.NS shares climb 4% to 13,860 rupees

** India's top carmaker posts 33.3% Y/Y rise in April total sales, led by 35.5% jump in domestic passenger vehicle sales and 43.5% surge in exports

** Stock is second-biggest gainer on auto index .NIFTYAUTO and benchmark Nifty 50 .NSEI, which are up 2% and 0.98%, respectively

** Last week, the carmaker reaffirmed confidence in strong demand for its small cars and outlined plans to add 500,000 units of capacity by the end of FY27 through an investment of $1.24 billion

** Avg rating of 37 analysts on MRTI at "buy"; median PT is 16,080 rupees - LSEG-compiled data

** YTD, however, MRTI down 16.9%, worst performer on auto index, which is down 6.2%

(Reporting by Kashish Tandon in Bengaluru)

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

• MARUTI SUZUKI - DOMESTIC SALES HIT RECORD 191,122 UNITS IN APRIL 2026

• MARUTI SUZUKI - SOLD A TOTAL OF 239,646 UNITS IN APRIL

Source text: ID:nBSE92N4gD

Further company coverage: MRTI.NS

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

By Shritama Bose

MUMBAI, April 30 (Reuters Breakingviews) - The jobs crisis stirring in India’s vast outsourcing industry spells trouble for the country’s $4 trillion consumption-led economy. With the gap between household income and spending already widening, the consequences of the churn on finance and markets will be far-reaching.

White collar jobs are starting to disappear in the world’s services capital where many global firms employ thousands of staff in global capability centres that are responsible for everything from back-office functions to fraud detection to critical research and development.

Following the launch of artificial intelligence tools by Anthropic and others that allow companies do the same amount of work with fewer people, Oracle ORCL.N laid off 10,000 workers, or one-fifth of its India workforce in March, and Amazon.com AMZN.O let go of 500 people in the country in January, the Economic Times reported, citing sources. It looks like just the beginning of the headcount reductions.

One executive of a global bank told Reuters Breakingviews their workforce in India could shrink by one-third. This could happen quickly within just one or two years because of the double digit attrition rates at offices of global firms in cities including Bengaluru, Gurugram and Pune. JPMorgan Chase JPM.N has a whopping 55,000 employees in the country, which equals about one-fifth of its total workforce and includes one-third of all its technologists; HSBC’s HSBA.L 47,000 local employees make up 23% of its global headcount.

Then there is also “AI deflation” – the term Indian IT firms that typically lap up fresh graduates use to refer to slowing revenue growth. Annual revenue in U.S. dollar terms at industry leader Tata Consultancy Services TCS.NS shrunk for the year ended March 2026, marking the first decline since the $97 billion company's initial public offering ​in 2004.

Altogether, global capability centres and the IT sector employ up to 15 million people who anchor India’s middle class and whose jobs are under threat from generative AI, Bernstein analysts Venugopal Garre and Nikhil Arela said last week in an open letter to Prime Minister Narendra Modi.

Though this is a small fraction of India’s 616-million-strong workforce comprised mostly of swathes of informal and agricultural workers, the AI vulnerable cohort represents a sizeable chunk of the employed within the rising middle class. With fewer jobs, there will also be pressure on salaries for those who keep theirs.

For India, advances in generative AI are intensifying the intractable challenge of creating enough jobs in a country that skipped over the traditional manufacturing route and where 8 million people enter the workforce each year. Modi's push to drive manufacturing isn’t softening the blow much either, thanks to factory automation.

There are already signs that India’s world-beating 7.8% growth is decoupling from employment generation: New Delhi’s latest Economic Survey notes that since 2022 – the same year that OpenAI launched ChatGPT -- the labour intensity of output has marginally declined. That rupture will deepen unless workers upskill, the survey says, with the change coming “not in a single shock, but in a quiet, steady drift”.

This threatens a blow to spending on what people want, rather than what they need. Private consumption accounts for about 60% of GDP and the top 140 million Indians who on average each earn roughly $15,000 per annum, according to Blume Ventures, drive two-thirds of discretionary spending.

Any contraction in their incomes could force them to cut back, hitting sales of goods from new homes to cars and demand for experiences from dining out to live events. There will be a ripple effect too: Middle-class homes in India employ cooks, cleaners and drivers.

Demand for their services, and those of India’s vast gig economy servicing the middle class, would recede. That puts at risk earnings of carmakers, consumer groups and financial services providers which, together with Mukesh Ambani's Reliance Industries RELI.NS – the owner of India’s largest retailer - account for nearly 62% of the benchmark Nifty 50 index .NSEI. Sluggish consumption is already hurting some of them: small car sales slowed at Maruti Suzuki India MRTI.NS last year and Unilever's ULVR.L Indian unit has been grappling with weak urban demand.

A potential 30% reduction in the 15-million-strong outsourcing and global capability centre workforce over the next two years could shrink the top consuming class by about 5 million to 135 million.

Assuming Blume Ventures' annual income estimate of $15,000, this cohort's total spending power stands to fall by roughly $75 billion a year, assuming those people don't find other employment or sources of income. That's equivalent to 10% of the Nifty 50 constituents’ net sales of 71.3 trillion rupees ($755 billion) for the financial year ended March 2025, per data from the National Stock Exchange.

Overall household savings are already declining as indebtedness mounts: Indians saved barely 23% of their personal disposable income in the financial year to March 2025, according to an estimate by CLSA, down from nearly 30% two decades earlier. Debt as a share of disposable income surged to 55% from 31% over the same period.

While India’s household debt to GDP ratio is much lower than for most peer economies, meagre earnings mean Indians end up spending 13% of their income on repaying borrowings, higher than 8.5% for China and 8% for the US.

Much of what Indians borrow goes towards financing consumption rather than creating assets. Households are leveraging up to pay for everything from overseas vacations to weddings and smartphone purchases.

Such financing, which the Reserve Bank of India calls non-housing retail loans, makes up 55% of household obligations and is growing faster than mortgages. India's household debt to GDP ratio stands at 41.9%. If half of those borrowings are consumption-linked, it implies household discretionary debt amounts to roughly 21% of GDP. Apply that to India’s nominal GDP of 331 trillion rupees for 2024-25 and you have at risk loans worth 69 trillion rupees across the country’s banks and non-bank lenders.

This threatens the loan quality at financial institutions led by the $130 billion HDFC Bank HDBK.NS as well as lenders backed by global investors from Sumitomo Mitsui Financial 8316.T to Blackstone BX.N who are accelerating their expansion in India to tap retail credit demand.

The impact of AI on the global workforce may ultimately create more jobs. First, though, it may turn India’s already weak consumption and much-vaunted demographic dividend into a nightmare.

Follow Shritama Bose on LinkedIn and X.

(Editing by Una Galani; Production by Aditya Srivastav)

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April 29 (Reuters) - Shares of Maruti Suzuki India MRTI.NS jumped 4% on Wednesday as investors looked past ear-term margin pressures to bet on strong demand for its small cars and a brighter volume outlook.

India's top carmaker missed quarterly profit estimates on Tuesday but flagged strong demand momentum for its small cars. It also laid out plans to expand manufacturing capacity with an investment of 140 billion rupees in the current fiscal year.

(Reporting by Kashish Tandon in Bengaluru)

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Rewrites, adds chairman comment, details throughout

By Kashish Tandon and Aditi Shah

April 28 (Reuters) - Maruti Suzuki India MRTI.NS plans to invest $1.48 billion to expand manufacturing capacity in the world's third-largest car market, betting on demand for small cars despite mounting risks from the Iran war.

India's largest automaker, a unit of Japan's Suzuki Motor 7269.T, will spend the money to widen production by 500,000 units in the current fiscal year that started in April.

Vehicle sales in the world's most populous country have picked up after New Delhi slashed taxes last September, boosting showroom footfalls and aiding pricing power, particularly for small cars and sport utility vehicles.

"Small cars account for about 130,000 of the 190,000 pending orders," Maruti Suzuki India Chairman R C Bhargava said in a post-earnings call, adding that affordable vehicles will remain key to mass mobility in a price-sensitive market such as India.

The weeks-long Iran war and the closure of the Strait of Hormuz have pushed up raw material costs and tightened supplies of key materials such as aluminum and plastics.

However, Bhargava said the impact on India's car production and demand has been minimal so far even as risks from higher prices and fuel costs remain uncertain.

The Swift small car maker's profit fell 6.9% to 35.91 billion rupees ($380 million) for the quarter ended March, below analysts' estimates of 41.38 billion rupees, according to LSEG-compiled data.

Overall sales, including exports and supplies to Toyota 7203.T under a global manufacturing and design partnership, rose nearly 11.8% from a year earlier, pushing revenue up 28.2% to 524.49 billion rupees.

A near 51% year-over-year surge in raw material costs pushed total expenses up 28%, while a 67.3% fall in other income further dented earnings, with margins shrinking by 270 basis points to 7.2%, the automaker said.

Maruti's peers have yet to report their quarterly earnings.

($1 = 94.5087 Indian rupees)

(Reporting by Kashish Tandon in Bengaluru, writing by Chandini Monnappa; Editing by Nivedita Bhattacharjee, Kevin Liffey and Mrigank Dhaniwala)

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

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

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

IN THE FAST LANE

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

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

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

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

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

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

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

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

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

RISK TO MARGINS

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

That cushion could be thinning.

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

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

HDFC Securities expects margins to soften sequentially across the sector.

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

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

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

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April 24 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:

• MARUTI SUZUKI - COMPETITION COMMISSION HEARING ADJOURNED TO MAY 11, 2026 FOR CCI ARGUMENTS

Source text: ID:nBSE34Gg31

Further company coverage: MRTI.NS

(([email protected];))

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

By Shritama Bose

MUMBAI, April 20 (Reuters Breakingviews) - Tankers have crossed the Strait of Hormuz in significant numbers for the first time since the U.S. and Israel launched a war against Iran seven weeks ago but companies will keep paying a price for the conflict, and not just through energy prices, which will remain elevated for months. Governments in Asia are fiscally strained and will keep pushing the burden onto the private sector.

Two Indian states home to factories run by Samsung 005930.KS and Maruti Suzuki MRTI.NS, this month ordered wage increases up to 35% to quell worker protests against surging living costs. The northern state of Haryana made the sharp hike in minimum wages on April 10. A deadly wave of protests prompted neighbour Uttar Pradesh to follow with a similar move on Tuesday.

The situation exposes India's long-standing problem of stagnating incomes. As far back as December 2024, Chief Economic Advisor V Anantha Nageswaran exhorted companies to become better paymasters. Minimum wages are abysmally low, but the hasty reaction from the states is no alternative for gradual, well-planned increments. If more states do the same, it will intensify inflation nationwide. Since fighting broke out in the Middle East in February, the only relief from the federal administration has been a cut to duties on fuel sales to cushion consumers.

Shaky government finances partly explain burden shifting: Indian states have turned populist, frequently resorting to handing out freebies to secure elections. States' aggregate gross fiscal deficit rose to 3.3% of GDP from 2.6% before Covid, leaving them little room to deal with the latest crisis. Not only does it dent Prime Minister Narendra Modi's Make-in-India pitch, but it also risks dulling the competitive edge exporters may have gained through trade pacts with markets including the European Union and the UK.

This problem will be widespread. Companies operating across South and Southeast Asia, where import dependence on energy is intense and fiscal conditions are deteriorating, are on edge. Take Indonesia. President Prabowo's government is collecting penalties and revoking resource permits under the auspices of an environmental crackdown.

Yet such acts are hard to reverse. Ultimately it validates global investors' rising ambivalence about committing patient capital to these Asian states. In the long term, that will be worse for workers and politicians.

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CONTEXT NEWS

India's northern state of Uttar Pradesh raised minimum wages for all categories of workers by about 21% on an interim basis, following days of protests in an industrial hub. The hikes will be applicable retrospectively from April 1 and will increase the pay of unskilled workers in the state to 13,690 rupees (roughly $148) per month from the current monthly pay of ‌11,313 rupees ($122). The state government said it will set up a new wage board to review and recommend further revisions to rates, and the process will begin in May.

UP's neighbouring state of Haryana on April 10 ordered a 35% hike in minimum wages. The state government said it was raising the floor wage for unskilled workers to $165 per month from roughly $120, effective April 1. The decision came a day after clashes in the auto manufacturing hub of Manesar, 30 miles south of New Delhi, between police and workers who boycotted work and staged protests over living costs rising due to war in the Middle East.

(Editing by Una Galani; Production by Ujjaini Dutta)

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Adds CEO comments, more details throughout

By Aditi Shah

CHENNAI, April 16 (Reuters) - Renault RENA.PA is betting on electric vehicles and hybrids to win over buyers in the world's third-largest car market, global CEO Francois Provost said on Thursday, as the French carmaker steps up its product push to regain market share.

The company wants India to rank among the Renault brand's top three global markets by 2030, and aims to capture about 5% of market share in the country by the end of the decade, Provost told reporters at an event in India's southern auto hub of Chennai.

Renault, which does not have a presence in the U.S. and China, expects the Indian market will play a key role in developing new models and boosting sales for the French carmaker globally.

"Our ambition goes beyond 'India for India' in growth and product," Provost said, adding he sees the country as an export and tech hub, "and a strategic asset on a global scale" where it will develop products and technologies for the world.

Sales of cars in India are set to touch 6 million by 2030, up 36% from 2025, S&P Global Mobility data showed, with a rapid increase in demand for SUVs and premium vehicles - a shift Provost is betting on.

Renault entered India in 2005 and in 2012 it launched its popular Duster SUV helping the carmaker achieve a market share of 4%. But over time, Renault's share dwindled and is less than 1% currently, industry data showed.

The automaker, which is making a comeback in the South Asian country, is betting on its electrified vehicles to win over consumers, with Provost expecting EVs and hybrids to account for about half of its sales in India by 2030.

Renault currently builds most cars in India on its compact vehicle platform and it recently introduced a modular platform on which it has built the Duster SUV.

The new modular platform will allow Renault to introduce vehicles of different sizes with a high level of local content, allowing it to price them competitively for the domestic market and exports, the company's India chief Stephane Deblaise said at the same event.

It plans to have seven models in India by the end of the decade, including its existing portfolio of four vehicles plus the launch of three new cars.

INDIA AS AN EXPORT HUB

India is emerging as a major source of global engineering and innovation for Renault, and Provost said the company aims to generate about 2 billion euros ($2.36 billion) worth of car, parts and technology exports a year from the country by 2030.

South America is one region it will export to, Provost said.

Global automakers, including Japan's Toyota 7203.T, Suzuki 7269.T and South Korea's Hyundai Motor 005380.KS are stepping up investments in India, betting on rising domestic demand and its growing role as an automotive production and engineering hub.

Provost, a Renault insider who previously ran operations in Russia, South Korea and China, did not disclose how much the company will commit exclusively to the Indian market.

Under its broader international game plan, Renault has said it will spend 3 billion euros by 2027 launching Renault-brand models in India, Latin America, South Korea, Turkey and North Africa.

($1 = 0.8487 euros)

(Reporting by Aditi Shah in Chennai, Writing by Surbhi Misra in Bengaluru; Editing by Sonia Cheema and Jane Merriman)

(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))

** Maruti Suzuki India MRTI.NS falls as much as 6% to 12,966 rupees; last down 4%

** State of Haryana orders 35% hike in minimum wages after protests over soaring costs due to Iran war

** This creates near-term cost challenge for labour-intensive sectors, especially automobiles, auto ancillary units concentrated in Haryana, ICICI Securities says

** However, expects this regulation to have minimal impact on co as it already has wage agreement in place

** Stock rated "buy" on avg; median PT is 17,103 rupees, per data compiled by LSEG

** YTD, MRTI down 21%

(Reporting by Brijesh Patel in Bengaluru)

(([email protected]; Ph no. +91 9590227221;))

Updates with comment from Roop polymers in paragraph 15, updates dateline

By Aditi Shah and Arpan Chaturvedi

MANESAR, India, April 11 (Reuters) - India's auto-making state of Haryana ordered a 35% hike in minimum wages on Friday, after factory workers boycotted work and staged protests this week over rising living costs as a result of the U.S.-Israeli war on Iran.

Haryana's government said it was raising the minimum wage for unskilled workers to $165 per month, from roughly $120, effective April 1, a move that helps workers but will raise cost pressures for India's auto industry at a time of rising input prices and supply chain disruptions.

The decision comes a day after clashes between the police and workers in Manesar, located 30 miles (48.28 km) south of New Delhi and home to companies like Maruti Suzuki MRTI.NS, as well as hundreds of ancillary units that feed into it.

"We urge the workers to ... peacefully carry on their work," Ajay Kumar, a state official, said in a video address on Friday.

Factory workers have been hit hard as prices at eateries have surged due to disrupted supplies of gas in recent weeks, prompting some to return to their villages.

India is the world's second-largest liquefied petroleum gas (LPG) importer and is battling its worst gas crisis in decades, with the government cutting supplies for industries to shield households from any shortage of cooking gas.

The government's move will increase costs for India's car industry, already dealing with higher raw material prices stemming from the Iran war. While the likes of Tata Motors TAMO.NS and Mahindra MAHM.NS have raised car prices, Maruti has warned of a similar move.

HEAVY RELIANCE ON GAS

India's heavy reliance on gas across the economy - businesses of all sizes, households, agriculture, public transport - makes its factories as well as lower-income earners among the most vulnerable in Asia.

Akash Kumar, 25, who works at Munjal Showa MNJL.NS, a supplier to motorbike maker Hero MotoCorp HROM.NS, said street vendors were charging him double the price for a meal of bread, curry and yogurt.

Friday's decision, he said, will bring some relief. "Whatever we get, we have to be happy," he said, adding that workers have resumed duties after being told about the pay hike.

Industrial unrest in Manesar affected various auto suppliers this week, according to Reuters' interviews with more than 30 workers. Workers said they were demanding pay rises to sustain their livelihoods as food was becoming expensive and gas supplies were erratic.

The federal government maintains there is no shortage of cooking gas for households and it is increasing availability of smaller cylinders for daily-wage earners and migrants.

Munjal Showa told Reuters its production was partially impacted this week.

At Roop Polymers, a supplier to Maruti and Honda 7267.T, notices on the factory-gate wall warned of disciplinary action against absent workers, and a company executive said "work was heavily disrupted inside" due to the protests.

In a statement on Saturday, Roop told Reuters that the impact of worker protests on production was "very minimal" and operations are now running normally.

Maruti, Honda and Hero did not respond to requests for comment.

While talks between Iran and the U.S. have raised hopes of de-escalation, auto industry executives said supply chains could take weeks to normalise, as a growing number of migrant workers head back home.

India has about 400 million local migrant workers heading to places such as Manesar to earn a minimum wage for an average 48 hours a week.

"Most employers are trying hard to hold on to the workforce that is running back by offering two meals a day or paying a small bonus," said Vinod Kumar, president of India SME Forum which represents thousands of small and medium-sized businesses.

The group is seeking government help to implement "emergency" measures and establish cluster-based common kitchens, as Kumar said "once labour leaves, it is very difficult to get them back."

(Reporting by Aditi Shah and Arpan Chaturvedi in Manesar, additional reporting by Dhwani Pandya in Mumbai, Saurabh Sharma in New Delhi and Sumit Khanna in Ahmedabad; Editing by Aditya Kalra, Miyoung Kim, Elaine Hardcastle and Alexander Smith)

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

By Aditi Shah and Arpan Chaturvedi

MANESAR, India, April 10 (Reuters) - India's auto-making state of Haryana ordered a 35% hike in minimum wages on Friday, after factory workers boycotted work and staged protests this week over rising living costs as a result of the U.S.-Israeli war on Iran.

Haryana's government said it was raising the minimum wage for unskilled workers to $165 per month, from roughly $120, effective April 1, a move that helps workers but will raise cost pressures for India's auto industry at a time of rising input prices and supply chain disruptions.

The decision comes a day after clashes between the police and workers in Manesar, located 30 miles (48.28 km) south of New Delhi and home to companies like Maruti Suzuki MRTI.NS, as well as hundreds of ancillary units that feed into it.

"We urge the workers to ... peacefully carry on their work," Ajay Kumar, a state official, said in a video address on Friday.

Factory workers have been hit hard as prices at eateries have surged due to disrupted supplies of gas in recent weeks, prompting some to return to their villages.

India is the world's second-largest liquefied petroleum gas (LPG) importer and is battling its worst gas crisis in decades, with the government cutting supplies for industries to shield households from any shortage of cooking gas.

The government's move will increase costs for India's car industry, already dealing with higher raw material prices stemming from the Iran war. While the likes of Tata Motors TAMO.NS and Mahindra MAHM.NS have raised car prices, Maruti has warned of a similar move.

HEAVY RELIANCE ON GAS

India's heavy reliance on gas across the economy - businesses of all sizes, households, agriculture, public transport - makes its factories as well as lower-income earners among the most vulnerable in Asia.

Akash Kumar, 25, who works at Munjal Showa MNJL.NS, a supplier to motorbike maker Hero MotoCorp HROM.NS, said street vendors were charging him double the price for a meal of bread, curry and yogurt.

Friday's decision, he said, will bring some relief. "Whatever we get, we have to be happy," he said, adding that workers have resumed duties after being told about the pay hike.

Industrial unrest in Manesar affected various auto suppliers this week, according to Reuters' interviews with more than 30 workers. Workers said they were demanding pay rises to sustain their livelihoods as food was becoming expensive and gas supplies were erratic.

The federal government maintains there is no shortage of cooking gas for households and it is increasing availability of smaller cylinders for daily-wage earners and migrants.

Munjal Showa told Reuters its production was partially impacted this week.

At Roop Polymers, a supplier to Maruti and Honda 7267.T, notices on the factory-gate wall warned of disciplinary action against absent workers, and a company executive said "work was heavily disrupted inside" due to the protests.

Roop, Maruti, Honda and Hero did not respond to requests for comment.

While talks between Iran and the U.S. have raised hopes of de-escalation, auto industry executives said supply chains could take weeks to normalise, as a growing number of migrant workers head back home.

India has about 400 million local migrant workers heading to places such as Manesar to earn a minimum wage for an average 48 hours a week.

"Most employers are trying hard to hold on to the workforce that is running back by offering two meals a day or paying a small bonus," said Vinod Kumar, president of India SME Forum which represents thousands of small and medium-sized businesses.

The group is seeking government help to implement "emergency" measures and establish cluster-based common kitchens, as Kumar said "once labour leaves, it is very difficult to get them back."

(Reporting by Aditi Shah and Arpan Chaturvedi in Manesar, additional reporting by Dhwani Pandya in Mumbai, Saurabh Sharma in New Delhi and Sumit Khanna in Ahmedabad; Editing by Aditya Kalra, Miyoung Kim and Elaine Hardcastle)

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

April 6 (Reuters) - India’s auto dealers warned of possible supply disruptions in the near term, from the West Asia conflict, even as Indian retail vehicle sales rose 25.28% in March, closing the financial year on a strong note on sustained momentum from tax cuts that improved affordability, the Federation of Automobile Dealers Associations (FADA) said on Monday.

Passenger vehicle sales rose 21.48% year-over-year in March, while two-wheeler sales rose 28.68% and commercial vehicle sales rose 15.12%, FADA said.

(Reporting by Meenakshi Maidas in Bengaluru)

(([email protected]; +91 8921483410;))

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

• MARCH 2026 SALES TOTAL 225,251 UNITS

Source text: ID:nBSE3Gtj7M

Further company coverage: MRTI.NS

(([email protected];))

March 31 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:

• MARUTI SUZUKI - GETS ORDER CONFIRMING A TAX DEMAND OF 384.2 MILLION RUPEES, INTEREST AND EQUAL PENALTY OF 384.2 MILLION RUPEES

Source text: ID:nBSE4hHlT6

Further company coverage: MRTI.NS

(([email protected];))

Repeats to additional subscribers, with no change to text

By Aditi Shah

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

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

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

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

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

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

The ministry wants the sector to do more.

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

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

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

(Reporting by Aditi Shah, Editing by William Maclean)

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

By Aditi Shah

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

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

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

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

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

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

The ministry wants the sector to do more.

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

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

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

(Reporting by Aditi Shah, Editing by William Maclean)

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

March 24 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:

• APPROVED ADDITION OF FIRST PHASE OF CAPACITY AT SITE

• INVESTMENT REQUIRED FOR FIRST PHASE IS 101.89 BILLION RUPEES

• FIRST PHASE OF CAPACITY OF 2,50,000 VEHICLES PER ANNUM IS EXPECTED TO BE ADDED BY 2029

• ADDITION OF FIRST PHASE OF CAPACITY OF 250,000 VEHICLES PER ANNUM AT KHORAJ

Source text: ID:nBSE9rlNn9

Further company coverage: MRTI.NS

(([email protected];;))