MARUTI

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)

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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))

By Aditi Shah

NEW DELHI, March 19 (Reuters) - India's automakers and parts suppliers are bracing for production slowdowns and assembly-line disruptions as the Iran conflict chokes gas availability, threatening growth in the world's third-largest car market.

Some parts suppliers to India's leading carmakers like Maruti Suzuki, Tata Motors and Mahindra are already reporting a shortage of gas to power operations, an early sign that supply chain issues are developing, according to two dozen executives at car companies, part makers and dealers.

The disruption comes at a time when India's car demand is soaring to record levels, with sales expected to cross 4.5 million units in the current fiscal year to March 31, leaving little excess inventory with manufacturers and dealers.

"At this point in time it is about survival. First and foremost we need to ensure production continues. The buffer stocks will not last long," said a senior executive with a leading carmaker.

INDIA MOST EXPOSED TO WEST ASIA CONFLICT

India relies heavily on the Middle East for energy supplies, importing 50% of its natural gas needs mostly from Qatar, which has been forced to shut its refinery after a wave of Iranian attacks.

Shipments of oil and gas through the Strait of Hormuz have also tanked after Iranian attacks on vessels.

While India is working to secure gas from the U.S., Norway and Russia, the government has prioritised supplies for homes over factories. In auto sector plants, the fuel is critical to high-heat processes like forging and casting, and in the paint shop.

Suppliers Reuters spoke to in India's western and northern car manufacturing belts said production will be managed until end-March. But the stress in the system is showing, with at least four executives saying Tata and Mahindra are operating some factories below capacity.

Mahindra said in a statement that the company has not lost any production this month versus its "plan to date", while a spokesperson for Tata Motors said operations at its plants are "near normal".

Tata said it is working with suppliers to ensure continuity and optimising production where required.

Small and medium manufacturing units, which form the car industry's backbone, are most vulnerable, as they rely more on gas and are unable to switch to other sources quickly.

Kirloskar Ferrous KRFI.BO, a supplier of iron castings, told an Indian stock exchange this week it has stopped some production at a factory in Western India "until further notice".

Metal producer Hindalco HALC.NS declared force majeure to some of its customers last week, warning them of potential disruptions amid gas shortages.

Both companies count Mahindra as a customer. Mahindra did not offer a direct comment about the two suppliers, but said its teams are working on the supply chain and taking action as needed.

CARMAKERS YET TO OFFICIALLY CUT PRODUCTION SCHEDULES

Automakers are operating in a state of high-alert diplomacy with their suppliers to keep assembly lines moving, and have not officially cut production schedules yet.

"We have received some information about challenges in energy supply for our in-house and our suppliers' production operations," said Rahul Bharti, senior executive officer for corporate affairs at Maruti MRTI.NS, India's biggest carmaker.

"As of now, our operations are running as per plan," he told Reuters.

S&P Global Mobility has already begun slashing its India outlook, now forecasting 6.3% growth in light vehicle production for 2026, down from 7.4% projected before the war.

"Depending on when the conflict ends, we may need to further revise the forecast," said S&P's Gaurav Vangaal.

(Reporting by Aditi Shah; Editing by Jan Harvey)

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

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

• MARUTI SUZUKI - GETS TAX ORDER OF 57.86 BILLION RUPEES

Source text: ID:nBSE1fS15b

Further company coverage: MRTI.NS

(([email protected];))

March 13 (Reuters) - India's domestic car dispatches to dealers rose for the fifth straight month in February, data from an industry body showed on Friday, helped by tax cuts that have lowered prices across most models.

"While the month of March has festive drivers... the recent conflict in West Asia remains a concern... could impact the manufacturing processes and exports," Rajesh Menon, Director General of Society of Indian Automobile Manufacturers (SIAM), said.

Here are some key details:

• Passenger vehicle dispatches jumped 10.6% to 417,705 units in February, compared with 377,689 units a year earlier.

• Tax reductions continue to fuel growth, extending momentum for fifth consecutive month.

• In September 2025, India slashed taxes on larger SUVs to 40% as an additional levy was dropped and on small cars and two-wheelers to 18% from 28%, helping support demand across segments.

• Vehicle sales picked up during the ongoing wedding season, supported by strong bookings, inventory build-up and new model launches.

• Domestic demand is expected to remain strong, though exports could soften on reduced shipments to Africa and the Middle East, analysts added.

• SIAM warns the ongoing Middle East crisis could hit production and exports if supply chains are disrupted.

• A shortage of gas - crucial for paint shops and component manufacturing - may affect production, analysts said, though they expect only near-term impact on Indian manufacturers due to inventory buffers.

• Domestic demand to stay robust but exports could weaken due to reduced shipments to Africa and the Middle East- Axis Capital

• India, the world's third-biggest car market, has an auto industry that accounts for 7.1% of its GDP.

• Tax cut-driven growth is likely to sustain for several quarters, a dealer's body said last week.

(Reporting by Meenakshi Maidas and Urvi Dugar in Bengaluru)

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

** Maruti Suzuki MRTI.NS poised for market-share recovery despite recent underperformance due to weak near-term wholesales and soft Q3, Motilal Oswal says

** Adds near-term wholesale constrained by capacity limits; expected to ease from April 2026 with new capacity expansion

** MRTI falls 2.25% to 13,194 rupees amid weaker markets; Nifty auto index .NIFTYAUTO down 2.4%

** Brokerage reiterates "Buy", raises PT to 17,406 rupees from 13,497 rupees

** Says co poised to outgrow industry in FY27, supported by strong launches that include new Brezza variant, recent Victoris and e-Vitara, plus another model next year

** Adds export momentum remains healthy as co targets 750,000-800,000 units by FY31 and already surpassed FY26 goal last month

** YTD, MRTI down 20%

(Reporting by Urvi Dugar in Bengaluru)

(([email protected];))

March 6 (Reuters) - The U.S.-Israel war with Iran, which entered its seventh day on Friday, threatens to disrupt the shipment of vehicles from Asia to the Middle East, a major export market for Asian automakers.

Chinese, Indian, South Korean and Japanese automakers export cars worth billions of dollars to the Middle East through the Strait of Hormuz and shipping along the route has ground to a halt over fears of attacks by Tehran.

CHINA

The Middle East is the second-largest overseas market for China-made vehicles and an increasingly important region for the Asian giant as it looks to offset weak demand at home.

Of the 8.32 million cars shipped overseas by Chinese automakers in 2025, 1.39 million, or one-sixth, were to Gulf countries like Saudi Arabia and the United Arab Emirates, according to the China Passenger Car Association.

Major car exporters include Chery Automobile 9973.HK, BYD 002594.SZ, SAIC Motor 600104.SS, Changan Automobile 000625.SZ and Geely 0175.HK.

China joint ventures of Kia 000270.KS, Hyundai Motor 005380.KS and Toyota Motor 7203.T are also among the top 10 car exporters to the Middle East, according to data from Gasgoo Automotive Research Institute, China's largest supply chain platform.

INDIA

India exported $8.8 billion worth of cars in 2025, of which 25% went to the Middle East, mainly Saudi Arabia, according to commercially available customs data.

Hyundai Motor is most exposed with half its 2025 global shipments of $1.8 billion from India going to countries in the Gulf region.

Toyota, too, has a large exposure with about two-thirds, or more than $300 million, of its total India exports of $470 million last year going to the Middle East, according to the data.

Maruti Suzuki MRTI.NS sends less than 15% of its exports by value to the Gulf region, the data showed. Of its total exports of $3.2 billion in 2025, cars worth $457 million were shipped to the region.

Nissan Motor's 7201.T exposure from India is about $318 million, or 38% of its total exports in 2025, the data showed.

SOUTH KOREA

South Korea's total car exports by value in 2025 hit a record $72 billion, of which $5.3 billion of vehicles were sent to the Middle East, up 2.8% from 2024, according to the Korea International Trade Association.

Hyundai Motor's exports to the Middle East and Africa accounted for 8% of its total wholesale sales in 2025 of 4.14 million units. This adds up to about 317,000 cars that were shipped to the combined region.

Kia shipped 8% of its 2025 wholesale sales of 3.1 million units to the Middle East and Africa.

JAPAN

Toyota exported 320,699 vehicles from Japan to the Middle East in 2025, which was a 5.4% increase over the previous year, according to data published by the company. This made up just over 15% of the company's total exports of over 2 million units last year.

The automaker will produce nearly 40,000 fewer vehicles bound for Middle East markets due to logistical concerns stemming from the U.S.-Israeli campaign against Iran, the Nikkei reported.

(Reporting by Aditi Shah in New Delhi, Zoey Zhang in Shanghai, Heekyong Yang in Seoul and Maki Shiraki in Tokyo; Editing by Miyoung Kim and Jamie Freed)

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

Rewrites, adds details, background, auto body president comment

By Meenakshi Maidas and Yagnoseni Das

March 5 (Reuters) - India's retail vehicle sales jumped 25.6% in February, as last year's tax cuts and a pick-up in weddings drove demand for two-wheelers and passenger vehicles, the auto dealers' body said on Thursday.

Analysts had expected double‑digit year‑on‑year growth in February, supported by price cuts, new model launches and firm rural demand, after India cut taxes on vehicles last September to boost consumption in the wake of steep U.S. tariffs.

Two-wheeler sales jumped 25% from a year ago in February, while passenger vehicle sales climbed 26.1%, the Federation of Automobile Dealers Associations said, adding that demand was supported by weddings with enquiries rising across rural and urban markets.

The dealer body's president, C.S. Vigneshwar, told Reuters that growth is likely to sustain for several quarters, if not years, noting that the industry had always expected the impact of the tax cuts to be "seismic" rather than seasonal.

Over two-thirds of dealers surveyed by the association expect retail sales to grow in March, buoyed by festival-driven demand and fiscal year-end purchases. However, dealers have flagged supply constraints for some models.

Vigneshwar said that there has been no immediate impact on logistics for vehicles from the Middle East war.

Passenger vehicle inventory, or the average time a car remained on the showroom floor, fell for a fifth consecutive month to 27–29 days from 32-34 days in January.

(Reporting by Meenakshi Maidas and Yagnoseni Das Bengaluru; Editing by Eileen Soreng and Mrigank Dhaniwala)

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

By Aditi Shah

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

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

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

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

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

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

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

GOVERNMENT WANTS MORE EV ADOPTION, BUT SALES LAGGING

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

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

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

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

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

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

(Reporting by Aditi Shah; Editing by Joe Bavier)

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

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

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

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

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

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

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

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

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

($1 = 90.9920 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru)

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

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

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

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

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

($1 = 90.6900 Indian rupees)

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

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

Feb 13 (Reuters) -

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

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

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

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

(([email protected];;))

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

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

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

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

THIS WEEK IN ASIA

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

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

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

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

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

A 30-YEAR LEGACY UNDER PRESSURE

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

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

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

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

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

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

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

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

PANIC OR EARLY WARNING?

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

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

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

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

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

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

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

MARKET MATTERS

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

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

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

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

THIS WEEK'S MUST READ

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

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

Read this exclusive report by Reuters journalist Aditi Shah.

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

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

Repeats February 6 story. No change to text.

By Aditi Shah

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

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

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

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

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

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

PROMOTING ELECTRIC, HYBRID MODELS

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

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

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

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

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

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

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

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

(Reporting by Aditi Shah. Editing by Mark Potter)

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

By Aditi Shah

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

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

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

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

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

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

PROMOTING ELECTRIC, HYBRID MODELS

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

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

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

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

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

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

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

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

(Reporting by Aditi Shah. Editing by Mark Potter)

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

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

• HAVE PENDING ORDERS OF ABOUT 170,000 UNITS

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

• PRODUCTION CONSTRAINTS TO LAST FOR FEW MORE MONTHS

Further company coverage: MRTI.NS

(([email protected];))

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

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

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

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

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

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

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

** MRTI down 13.6% so far in Jan

($1 = 92.0630 Indian rupees)

(Reporting by Anuran Sadhu in Bengaluru)

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

** Shares of Maruti Suzuki MRTI.NS down as much as 2.5%, its lowest since September 2025, ahead of third-quarter results

** Analysts, on average, expect MRTI's rev to grow ~29% to 495.93 billion rupees ($5.41 billion), while profit seen growing ~21% to 42.61 billion rupes - data compiled by LSEG

** Rev seen climbing at its fastest pace in 13 quarters, or over three years; profit growth to hit six-quarter high - data compiled by LSEG

** India's top carmaker posted an 18% jump in overall sales in Q3, with domestic sales jumping 22% and exports climbing 3.9% - company data

** Analysts tracking MRTI rate it "buy" on average, same as rival Hyundai India HYUN.NS and SUV maker Mahindra & Mahindra MAHM.NS - data compiled by LSEG

** MRTI shares were weighed down on Tuesday following an India–EU trade deal that slashes tariffs on European car imports

** Stock down 10.3% so far in January, on track for worst month since October 2024

($1 = 91.6063 Indian rupees)

(Reporting by Nandan Mandayam and Brijesh Patel in Bengaluru)

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

By Christina Amann, Ilona Wissenbach and Amir Orusov

BERLIN, Jan 27 (Reuters) - European carmakers, squeezed by U.S. tariffs and price wars in China, will get a welcome boost from an EU-India trade deal that sharply drops tariffs on car imports, but face a tough market dominated by homegrown firms and compact Japanese "kei cars."

India and the European Union are set to sign a trade deal on Tuesday, including slashing tariffs on imports of EU-made cars to 40% from as high as 110%, the biggest opening yet of India's vast market for Volkswagen VOWG.DE and Renault RENA.PA.

The move, however, only edges the door open, analysts said, with local car brands and Asian rivals Suzuki Motor 7269.T and Hyundai 005380.KS dominating the market, with hot-selling models like the Maruti Suzuki Wagon R kei car - a class of pint-sized, affordable vehicles smaller than a Mini Cooper.

"It's a start. When we talk about exports from Europe, it's only about premium cars. For the volume sector it is difficult," said Stefan Bratzel of German auto research group CAM, who said Suzuki and Hyundai had better understood the market.

"In India it's about cheap, reliable, stable cars. The Volkswagen Group cars have been too expensive. Suzuki has benefited from the kei cars which are highly popular in Japan."

EU CARMAKERS HAVE LESS THAN 3% SHARE OF THE MARKET

With a modest production footprint and annual sales still in the tens of thousands of cars, European brands have huge room to expand after losing market share in the last decade.

European carmakers hold under a 3% share of India's car market, Indian automobile industry data shows. The South Asian country's market is dominated by Suzuki Motor and homegrown brands Mahindra MAHM.NS and Tata, which together hold two-thirds.

India has the world's third-largest car industry after the U.S. and China, but its 4.4 million-vehicles-a-year domestic auto market has been one of the most protected, with current levies of 70% and 110% on imported cars.

"India is a dynamically growing market and of considerable strategic importance to the Volkswagen Group," a spokesperson for the carmaker which controls Audi, Porsche P911_p.DE and Skoda said, adding it would look at the business impact from the trade deal.

Mercedes-Benz MBGn.DE said reduced tariffs should boost carmakers from both regions. BMW declined to comment.

Warburg Research analyst Fabio Hoelscher said a cut to 40% would make luxury European carmakers more competitive.

"The biggest winners versus before are brands like Porsche who import their entire portfolio as completely built units," he said, though he cautioned the move would take time to boost profits, while ongoing U.S. uncertainty would temper shares.

"After that, in the medium term, there is potential to expand local manufacturing."

INDIA CAR MARKET HAS BIG POTENTIAL FOR GROWTH

High U.S. import tariffs and a cut-throat market in China have pushed many automakers to consider new growth markets such as India, where the market is expected to grow by over a third to 6 million vehicles a year by 2030.

Prime Minister Narendra Modi's government has agreed to cut the tariff rate on a limited number of cars from the 27-nation bloc with an import price of more than 15,000 euros ($17,739), two sources briefed on the talks told Reuters.

This will be further lowered to 10% over time, they added.

ING Research analyst Rico Luman was bullish, saying that an EU-India trade deal "could turn into a significant opportunity for European car makers" in the medium run.

"The Indian car market is still in the early stages of maturing, which means there is substantial growth potential," Luman said.

(Reporting by Christina Amann in Berlin, Ilona Wissenbach in Frankfurt and Amir Orusiv in Gdansk; Writing by Rachel More; Editing by Adam Jourdan and Matthew Lewis)

(([email protected]))

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

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

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

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

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

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

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

($1 = 90.8938 Indian rupees)

(Reporting by Urvi Dugar in Bengaluru)

(([email protected];))

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

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

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

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

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

($1 = 90.6820 Indian rupees)

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

(([email protected]; +91-9833024892;))

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

• MARUTI SUZUKI - STARTS EXPORTS OF VICTORIS SUV

Source text: ID:nBSE1SlnQn

Further company coverage: MRTI.NS

(([email protected];))

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

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

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

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

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

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

Source text: [ID:]

Further company coverage: ASOK.NS

(([email protected];;))

Adds details of sales in Dec in paragraph 2

Jan 12 - Indian automaker Maruti Suzuki MRTI.NS said on Monday it plans to add up to 1 million units of annual production capacity after buying land worth about $550 million, expanding manufacturing to meet rising domestic auto demand.

The country's top carmaker by sales has an order backlog of about one-and-a-half months for its entry-level models, its marketing and sales head Partho Banerjee said on January 1. The company had also said then that its sales to domestic dealers were up 37% in December to a record 178,646 units.

The planned expansion follows Suzuki Motor's 7269.T announcement in August of an $8 billion investment in India over the next five to six years, alongside the start of commercial production of the mid-sized e Vitara SUV at its Gujarat plant.

Through its majority stake in Maruti Suzuki, Suzuki Motor already produces 17 models in India for export to about 100 countries, including Japan. India will also become the global production hub for the company’s electric cars.

($1 = 90.1675 Indian rupees)

(Reporting by Chandini Monnappa and Mridula Kumar in Bengaluru; Editing by Nivedita Bhattacharjee)

(([email protected]))

Jan 6 (Reuters) - INDIA AUTODEALERS BODY FADA:

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

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

• OVER NEXT 3 MONTHS, RETAIL OUTLOOK REMAINS DECISIVELY UPBEAT

• DEC’25 AUTO RETAIL UP 14.63% YOY

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