Tata Motors

Rewrites with comments from source, background

By Nishit Navin and Gopika Gopakumar

Aug 6 (Reuters) - The Reserve Bank of India on Thursday kept Tata Sons under enhanced regulatory supervision but said that would not affect the holding company's pending application to surrender its non-banking finance licence, leaving uncertainty over whether it will eventually have to list its shares.

Tata Sons, the principal investment holding company of the $400-billion Tata Group, was first classified as an upper-layer non-banking financial company (NBFC) in 2022. Under RBI rules, such entities are required to list within three years, although the regulator did not clarify whether that requirement applies while Tata Sons' deregistration request remains under review.

To avoid a listing, Tata Sons repaid its debt and applied about two years ago to surrender its NBFC licence. The application is still being considered by the central bank.

A person familiar with the RBI's thinking said the regulator is unlikely to require Tata Sons to list while the application remains pending, even though the three-year timeline has elapsed.

"Technically if you see Tata Sons has to follow all the regulation and if you look at even the listing, RBI will consider it as overdue. Since the application is yet to be disposed of, RBI will not push them to enforce these regulations," said the source familiar with the matter

The RBI and Tata Sons did not immediately respond to a Reuters request for comment. RBI Governor Sanjay Malhotra said on Wednesday that Tata Sons continued to be classified as an upper-layer NBFC because the framework governing such entities was "principle-based".

Upper-layer NBFCs are considered large and systemically important financial institutions and are subject to enhanced regulatory oversight. Tata Sons remains in the category because its asset size exceeds the stipulated 10 trillion rupees ($105 billion) threshold.

The outcome is significant because the Tata Trusts own about 66% of Tata Sons. A public listing could affect funding for the trusts' philanthropic activities and its investments in unlisted businesses, and alter the ownership structure of one of India's largest conglomerates.

Pressure for a listing has also come from Tata Sons' second-largest shareholder, the Shapoorji Pallonji Group, which wants to monetise or exit its holding as it seeks to reduce debt estimated at 5.5 trillion rupees to 6 trillion rupees.

Tata Sons owns Air India, Tata Digital and Tata Electronics, alongside stakes in listed companies including Tata Consultancy Services TCS.NS and Tata Steel TISC.NS.

($1 = 95.2200 Indian rupees)

(Reporting by Nishit Navin and Gopika Gopakumar. Editing by Sonia Cheema and Mark Potter)

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Aug 1 (Reuters) - Tata Motors Ltd TATM.NS:

• TATA MOTORS LTD: TATA MOTORS REGISTERED 37% GROWTH YOY WITH TOTAL SALES OF 39,641 COMMERCIAL VEHICLE UNITS IN JULY 2026

Source text: [ID:]

Further company coverage: TATM.NS

(([email protected];))

July 30 (Reuters) - Iveco Group NV IVG.MI:

• CHIEF FINANCIAL & IT OFFICER ANNA TANGANELLI TO LEAVE AFTER TATA MOTORS TENDER OFFER COMPLETION

• CFO ANNA TANGANELLI TO LEAVE IVECO GROUP EFFECTIVE NOVEMBER 2, 2026

Further company coverage: IVG.MI

(Reporting by Gdansk Newsroom)

(([email protected]; +48587696600;))

July 14 (Reuters) - Tata Motors Ltd TATM.NS:

• TATA MOTORS AND UCO BANK PARTNER FOR COMMERCIAL VEHICLE FINANCING - STATEMENT

Source text: [ID:]

Further company coverage: TATM.NS

(([email protected];;))

Updates CFO comment in paragraph 3

By Saikeerthi .

July 9 (Reuters) - Indian tyre maker JK Tyre & Industries JKIN.NS expects to raise product prices by a total of 11% to 13% by the end of September to offset rising input costs, its finance chief said, joining rivals in passing on higher expenses to customers.

The hikes reflect pressure across the auto-parts sector after an oil price rally linked to the Middle East conflict drove up the cost of petroleum-based inputs, energy and freight.

The tyre maker, which said in May it expects to raise prices by 5% to 6%, has since rolled out hikes every month in the first quarter and plans to increase prices by a further 5% to 6% in the coming two to three months, CFO Sanjeev Aggarwal told Reuters on Wednesday.

"Prices (of raw materials) have gone through the roof and for us, it went up by almost over 20%. So, that has impacted business in this quarter," Aggarwal said, citing West Asia tensions, transport disruption and supply-chain constraints.

Raw materials such as natural rubber, synthetic rubber, carbon black and steel make up about two-thirds of expenses for the company, which counts leading car makers Maruti Suzuki India MRTI.NS and Tata Motors TATM.NS among its customers.

The move brings it in line with rivals Apollo Tyres APLO.NS and CEAT CEAT.NS, which have also raised prices. Top Indian car makers have passed on the costs to customers.

Industry data released earlier this month showed vehicle sales rose 21.8% in June, signaling strong demand across passenger and commercial vehicles and giving tyre makers more room to raise prices.

(Reporting by Saikeerthi in Bengaluru; Editing by Chandini Monnappa, Subhranshu Sahu and Jonathan Ananda)

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July 6 (Reuters) - India's retail car sales rose 28.6% in June, with compressed natural gas and other alternative-fuel-powered vehicles accounting for a record 40.35% of total sales, after fuel prices jumped following the war in Iran, the Federation of Automobile Dealers Associations (FADA) said on Monday.

(Reporting by Kashish Tandon in Bengaluru; Editing by Rashmi Aich)

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By Dhwani Pandya

MUMBAI, July 4 (Reuters) - Indian government and auto industry officials on Saturday defended the mandatory rollout of petrol blended with 20% ethanol, saying years of testing and service data showed no evidence of widespread vehicle damage, despite public concerns over lower fuel efficiency and engine safety.

The fuel, known as E20, has faced rising criticism on social media in recent days, with motorists questioning whether older vehicles designed for lower ethanol blends could suffer corrosion, wear or reduced performance.

Automakers including Maruti Suzuki MRTI.NS, Hero MotorCorp HROM.NS and Toyota Kirloskar Motor said even older vehicles can run safely on E20. Maruti Suzuki, India's largest carmaker, said it had serviced more than 15 million older cars over the past two years that were not certified for E20 and found no fuel-related problems.

"As a manufacturer, we have tested E10 cars which were prevalent before 2023 on E20 fuel for all parameters and we have not found anything of concern," Rahul Bharti, Maruti Suzuki's senior executive officer for corporate affairs, said at a joint press conference with government officials.

Industry officials acknowledged a minor trade-off: E20 reduces fuel efficiency by about 3-3.5% because of its lower energy content. However, they said the fuel's higher octane rating can help carmakers design future engines with higher compression ratios, which could improve performance, torque, drivability and even fuel efficiency.

Officials also rejected viral claims that E20 had caused engine failures, saying at least one widely shared case was linked to contaminated fuel rather than standard E20.

They added that E20 is the highest ethanol blend currently tested for regular petrol vehicles and said any move to higher blends would need fresh trials.

(Reporting by Dhwani Pandya. Editing by Mark Potter)

(([email protected];))

July 3 (Reuters) - Tata Motors Ltd TATM.NS:

• TATA MOTORS - CO AND WELSPUN RENEWABLE ENERGY PARTNER TO DEVELOP 86 MW WIND-SOLAR HYBRID PROJECT

Further company coverage: TATM.NS

(([email protected];;))

July 1 (Reuters) - Tata Motors Ltd TATM.NS:

• TOTAL SALES OF 1,08,488 UNITS IN Q1 FY27

• JUNE TOTAL CV SALES AT 40,805 UNITS

• LOOKING AHEAD, WHILE COMMODITY PRESSURES WILL PERSIST, EXPECT MOMENTUM TO CONTINUE

Further company coverage: TATM.NS

(([email protected];;))

By Aditi Shah

NEW DELHI, June 29 (Reuters) - India's capital New Delhi will offer a cash incentive of over$1,000 to car owners willing to scrap their old vehicle for an EV, according to a new policy finalised by the government on Monday in a move aimed at reducing high levels of air pollution.

New Delhi is one of the world's most polluted cities with air quality worsening in the winters when dense, stagnant air traps emissions from crops burning in neighbouring states, vehicle exhaust and construction dust.

Here are some details:

• The local government in New Delhi finalises new electric vehicle policy with an outlay of 150 billion rupees ($1.59 billion) over four years to incentivise buyers of electric two-wheelers, cars and small trucks, as well as setting up EV chargers.

• To offer $1,060 as scrapping incentive to those who trade in cars bought before April 1, 2020 for an EV.

• Those buying a battery EV priced at up to 3 million rupees will be exempt from paying road tax and registration fees, which typically amount to 4%-10% of the car's price.

• Buyers of electric scooters and motorbikes will get a cash incentive of 30,000 rupees in the policy's first year, reducing to 10,000 rupees by year three.

• Delhi government will only register electric two-wheelers from April 1, 2028, forcing buyers to move away from gasoline and other powertrains.

• Will also incentivise setting up 32,000 EV charging points across Delhi.

• Hybrid vehicles have not been included in the policy which is expected to come into effect from July 1.

• Policy will provide a big boost to EV players like Tata Motors TAMO.NS and Mahindra & Mahindra MAHM.NS as well as electric two-wheeler makers TVS Motor TVSM.NS, Bajaj Auto BAJA.NS and Ather Energy.

(Reporting by Aditi Shah; Editing by Susan Fenton)

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

** Tata Motors TATM.NS says on investor day it targets 40% domestic CV market share by FY28 versus 35.7% in FY26; guides for double-digit EBITDA margins through the cycle

** Shares rise 3.7% to 414.65 rupees as analysts say firm better placed structurally, helped by market-share gains, stronger products, cost discipline and expansion into services, digital, exports and alternative powertrains

ANALYSTS BACK OUTLOOK AMID SLOWDOWN BLUES

** HSBC ("Buy", PT: 490 rupees) says near-term demand remains robust, but flags the scale of a likely second-half slowdown as the key factor to monitor

** BofA ("Buy", PO: 515 rupees) says Tata Motors is broadening its moat beyond vehicle sales through lifecycle revenues, technology investments and global diversification

** Nomura ("Neutral", PT: 402 rupees) likes the digital and technology push, but remains concerned about Iveco's weak recent performance

** UBS ("Buy", PT: 555 rupees) says sharper execution and cost discipline could drive durable profitability gains

(Reporting by Mridula Kumar in Bengaluru)

(([email protected]))

June 23 (Reuters) - Tata Motors Ltd TATM.NS:

• TATA MOTORS LTD - SEES INVESTMENT SPEND OF 2-4% OF REVENUE FOR 2028

• TATA MOTORS LTD - SEES FREE CASH FLOW OF 7-9% OF REVENUE (POST-TAX) FOR 2028

• TATA MOTORS LTD - TARGETS DOUBLE DIGIT EBITDA MARGIN FOR 2028

Further company coverage: TATM.NS

(([email protected];))

June 18 (Reuters) - Tata Motors Ltd TATM.NS:

• TATA MOTORS LTD - TO INCREASE PRICE OF ITS COMMERCIAL VEHICLES

• TATA MOTORS - TO INCREASE COMMERCIAL VEHICLE PRICES UP TO 2.5% EFFECTIVE JULY 1, 2026

• TATA MOTORS - PRICE INCREASE TO OFFSET RISING COMMODITY AND INPUT COSTS

Source text: ID:nBSE1qBTX1

Further company coverage: TATM.NS

(([email protected];))

Adds details of a related government notification in paragraphs 1 and 4, background in 11-14

By Munsif Vengattil and Aditi Shah

BENGALURU, June 12 (Reuters) - India has scrapped licensing requirements for radio spectrum used by crash-avoidance and self-driving systems in cars, removing a commercial barrier for automakers as it seeks to make some of the world's deadliest roads safer.

India, the world's third largest car market, reported more than 177,000 deaths in nearly half a million road accidents in 2024, latest government data show.

In notices on Thursday, the government waived licence requirements for radar sensors in the 77GHz to 81 GHz frequency band, allowing companies to use the spectrum without separate allocation by authorities.

A separate notice did the same for systems in the 5.9 GHz band, which enable vehicles to communicate with each other and roadside infrastructure.

INDIA ALIGNS WITH GLOBAL STANDARDS

The move aligns India with standards used in the U.S. and the European Union, allowing carmakers to deploy standardised, off-the-shelf hardware rather than build costlier local versions, lowering costs and speeding adoption.

Luxury carmakers Mercedes-Benz MBGn.DE and BMW BMWG.DE, which already offer radar-based driver assistance abroad, can roll out the same systems in India.

Domestic players Maruti Suzuki MRTI.NS, Tata Motors TATM.NS and Mahindra & Mahindra MAHM.NS could more easily introduce advanced driver-assistance systems (ADAS), pushing premium safety features into cheaper models.

Suppliers such as Germany's Bosch BOSH.NS and Continental CONG.DE, and chipmaker Qualcomm QCOM.O, also stand to benefit.

Radar sensors help gauge safe distances and enable features such as emergency braking, adaptive cruise control and blind-spot warnings, forming a foundation for autonomous driving.

Vehicle-to-everything (V2X) systems warn drivers of hazards beyond their line of sight, such as a car braking around a blind curve or an approaching ambulance.

A 2023 government panel said most traffic problems occur in such situations. "Most sensors do not work well in these scenarios and V2X fills the gap," it said.

The panel also recommended adding V2X to India's voluntary Bharat NCAP safety ratings, which assess crash performance rather than mandate specific features.

On India's crowded roads, drivers often face hazards ranging from cattle to pedestrians, while lane discipline and speed limits are widely flouted and weakly enforced.

(Reporting by Munsif Vengattil and Aditi Shah. Editing by Clarence Fernandez and Mark Potter)

(([email protected];))

May 26 (Reuters) - Hindustan Petroleum Corp Ltd HPCL.NS:

• HPCL, TATA MOTORS PARTNER TO DEVELOP SCALABLE CIRCULAR ECONOMY MODEL FOR USED AUTOMOTIVE LUBRICANTS - STATEMENT

Source text: [ID:]

Further company coverage: HPCL.NS

(([email protected];))

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 13 (Reuters) - India's Tata Motors TATM.NS reported a 69.6% jump in fourth-quarter profit on Wednesday, led by strong tax-cuts driven demand for trucks and buses.

The country's top commercial vehicle maker reported a profit of 24.06 billion rupees ($251.4 million) for the quarter to March 31, up from 14.19 billion rupees a year earlier.

($1 = 95.7050 Indian rupees)

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

(([email protected]; 8800437922;))

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

By Shritama Bose

MUMBAI, May 8 (Reuters Breakingviews) - India Inc's global M&A push is coming at an inopportune time for its government. Sun Pharmaceutical Industries SUN.NS last week agreed to buy U.S.-based Organon OGN.N for $11.8 billion, months after Tata Motors' TATM.NS $4.4 billion deal to acquire Iveco's IVG.MI trucks unit. A quest for new markets and technology promises more outbound approaches. That may eventually hand New Delhi reasons to feel displeased.

Cross-border acquisitions by Indian groups are on the rise. In 2025, large-ticket transactions like Tata Motors' Iveco purchase and IT firm Coforge's COFO.NS $2.4 billion acquisition of U.S.-based Encora contributed to a $26 billion splurge on overseas assets, the most active year by volume since 2010, per Dialogic.

It's sensible for Indian companies sitting on a large cash balance to deploy it in markets where valuation multiples are lower, rather than to acquire richly valued local peers. Sun Pharma trades at 33 times forward earnings and is paying just 4 times that metric for similarly sized Organon; smaller Indian rivals like Torrent Pharma TORP.NS and Divi's Laboratories DIVI.NS trade at much higher multiples.

Access to richer markets in Asia, Europe and the U.S. is also a big draw, as is technological know-how. Tata Motors' TAMO.NS 2008 buyout of Jaguar Land Rover helped build its local range of electric cars. The incentive to buy tech firms is especially high as India's own investment in R&D, at 0.7% of GDP, lags the global average of 2%.

Interest in external assets will intensify as advances in artificial intelligence force groups from outsourcers to drugmakers to level up. Manufacturers investing in areas like defence, vehicle components and consumer electronics will look to bridge India's capability gap with the rest of the world.

New Delhi has so far been sanguine about the trend, seeing it as a sign of India Inc's growing clout on the global stage. That could change as outbound fund flows add to rising pressures on external balances. With a surging energy import bill and fund outflows, India could be staring at a third straight financial year of a negative balance of payments in the 12 months to the end of March 2027.

Part of the cash being splurged overseas stems from a 2019 decision to sharply cut the corporate tax rate; officials hoped that would encourage firms to invest more locally to stimulate growth and employment. While private spending is showing signs of life, its contribution to GDP is below historical levels.

In time, New Delhi may find those dimensions of India Inc's overseas shopping spree unpalatable and act against them. Until then, there's little reason for companies to stop gazing outwards.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Sun Pharmaceutical Industries on April 27 said it will buy ​U.S. drugmaker Organon in an all-cash deal valuing the target at about $11.75 billion including debt, making it ‌the largest overseas acquisition by an Indian pharmaceutical company.

Indian IT services provider Coforge said on December 26 it would acquire artificial intelligence firm Encora at an enterprise value of $2.35 billion to boost its in-house artificial intelligence capabilities and expand its presence in the U.S. and Latin America.

(Editing by Antony Currie; Production by Ujjaini Dutta)

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

May 7 (Reuters) - Italian truckmaker Iveco IVG.MI, set to be acquired by India's Tata Motors TATM.NS, said on Thursday its adjusted net result swung to a loss of 74 million euros ($87 million) in the first quarter, from a profit of 60 million euros a year ago.

Iveco also said that Tata Motors' tender offer was expected to close by the third quarter of 2026, and not in the second quarter as previously estimated.

• The negative results follow the sale of Iveco's defence unit to Italy's Leonardo DRS.O, which was finalised in March

• Q1 adjusted operating loss from industrial activities was 90 million euros, compared to a profit of 82 million euros in 2025

• Net revenue from industrial activities amounted to 2.8 billion euros in the quarter

($1 = 0.8510 euros)

(Reporting by Anna Uras in Gdansk, editing by Milla Nissi-Prussak)

(([email protected]))

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)

(([email protected]; 8800437922;))

May 1 (Reuters) - Tata Motors Ltd TATM.NS:

• APRIL 2026 SALES RISE TO 34,833 UNITS FROM 27,221 UNITS IN APRIL 2025

Source text: ID:nBSE7LWR6L

Further company coverage: TATM.NS

(([email protected];))

By Neha Arora

NEW DELHI, April 28 (Reuters) - India's secondary aluminium producers, which rely on imported scrap, are facing shortages as the Middle East conflict disrupts supplies and drives up costs that are likely to be passed on to automakers, industry executives said.

India, one of the world's largest aluminium scrap importers, produces nearly half of its 4.2 million metric tons of aluminium through its secondary sector. The country depends heavily on scrap from the European Union, the U.S. and the Middle East, which accounts for about 30% of shipments.

"Various units are running at lower capacities and there are production cuts of 20-40%," said Jayant Jain, managing director at G. R. Metalloys, a leading producer based in the western city of Ahmedabad.

Scrap prices have jumped by nearly 30% since the Iran conflict began earlier this year, executives said, squeezing margins and depleting inventories.

"There is a hand-to-mouth situation in scrap plants because of shortages and price increase," said Sandeep Jain, managing director at Sunalco Alloys, adding that most companies have exhausted stocks.

The strain is expected to ripple through to the auto sector, dominated by companies such as Maruti Suzuki MRTI.NS, Tata Motors TATM.NS, Mahindra & Mahindra and Hyundai Motor India HYUN.NS, which together consume about 60% of domestically produced secondary aluminium.

"Due to the squeeze in scrap supplies, prices have been impacted, which will eventually be passed on to carmakers and ultimately, the buyers," said Dhawal Shah, managing partner at Metco Ventures.

India's auto industry body warned earlier this month of potential production disruptions, as well as higher input, fuel and freight costs due to the Middle East conflict.

Secondary producers are also grappling with a 2.5% import levy on scrap, which executives say is exacerbating cost pressures. A recyclers' body has sought intervention from the Prime Minister's Office to remove the tax, Reuters reported last week.

The government is studying the industry's request, Mines Secretary Piyush Goyal said.

A European industry lobby group has also asked India to exempt a 10% import duty on glass bottles and aluminium cans amid shortage fears linked to the Iran war. The conflict has already caused a shortage of Diet ​Coke, which is sold only in aluminium cans in India.

(Reporting by Neha Arora. Editing by Mayank Bhardwaj and Mark Potter)

(([email protected]; X: neha_5;))

April 16 (Reuters) - Iveco Group NV IVG.MI:

• SAID ON WEDNESDAY EXTRAORDINARY GENERAL MEETING ON TATA TAKEOVER, ORIGINALLY EXPECTED IN EARLY MAY, WILL TAKE PLACE AT LATER DATE

Further company coverage: IVG.MI

(Gdansk Newsroom)

(([email protected]; +48 58 769 66 00;))

India File is published every Tuesday. Think your friend or colleague should know about us? Forward this newsletter to them. They can also subscribe here.

By Ira Dugal

Once again, India's vast army of mom-and-pop investors is punching above its weight. While foreign funds rushed for the exits in March and shares in Asia's third-biggest economy logged their steepest monthly fall in six years, retail clients doubled down on their bets.

Are they spotting value early, or missing risks that foreign funds see? Write to me at [email protected].

And, the Reserve Bank of India puts banks under its radar for acting against the interests of the country's forex markets. Scroll down for more on that.

THIS WEEK IN ASIA

** US, Iran leave door open to dialogue after tense Islamabad talks

** Singapore tightens monetary policy as Iran war fuels inflation risks

** Iran war leaves crisis-scarred countries counting the cost

** China's factories snap years-long deflation spell on Iran war price shock

** Protracted Iran war narrows BOJ's rate hike options

CORRECTION VIEWED AS A BUYING OPPORTUNITY

In the central Indian town of Indore, 24-year-old Yash Raj Verma rubbed his hands in glee when markets took another dive in March as missiles flew in the Middle East war. "When everyone is selling, you should buy, I have understood that," said the home tutor who increased his monthly investments into stock funds by a quarter to 25,000 rupees ($268.49).

Millions of small-time investors like Verma remained unfazed in March when India's equity benchmark index Nifty 50 .NSEI fell 11% - the biggest monthly drawdown in six years. By contrast, foreign funds exited at a record pace.

The retail investors, who have pumped in an average of $2 billion a month over the past five years, have become crucial to Indian equity markets and are currently the main shock absorber for stocks as global money pulls back.

With Indian equity indices correcting rapidly since the Iran war began and threatening to magnify last year's underperformance - the worst in decades - analysts are watching closely to see if this class of investor buckles.

Data from the Association of Mutual Funds in India suggests they did not, at least in the month of March.

Equity-oriented mutual funds recorded net inflows of 404.5 billion Indian rupees in March 2026, up from 259.78 billion rupees in February. Inflows through monthly contribution plans like the one that Verma subscribes to, known as Systematic Investment Plans (SIPs), rose over 7% to a record 321 billion rupees.

While one-off factors like financial year-end contributions for tax saving may have helped, analysts said that investors used the fall in the market to bottom-fish.

Tarun Surana, a Mumbai-based independent distributor of mutual funds, said most of his clients had chosen to top up monthly investment plans during March's fall in equity markets.

"The correction appears to have been viewed as a buying opportunity rather than a trigger for risk aversion, leading to a meaningful pickup in equity inflows during the month," said Himanshu Srivastava, analyst at Morningstar Investment Research India.

PRESSURE ON COMPANY EARNINGS

The Iran war, now into its second month, has impacted sectors ranging from ceramics to glass manufacturing and restaurants, which have already seen business curtailed. Sentiment indicators like the HSBC India Purchasing Managers' Index have also declined.

Foreign investors expect that weakened growth will weigh on earnings of Indian firms, leaving equity indices looking overvalued despite the decline in prices.

Citing these concerns, Goldman Sachs downgraded India to 'market weight' from 'overweight' in a note dated March 26.

The negative sentiment has been reflected in flows, with foreign investors selling nearly $18 billion in Indian stocks in March and so far in April.

Domestic investors, though, see it differently.

The Nifty 50 typically trades at a 50% price-to-earnings premium to the MSCI Emerging Markets index .MSCIEF, Edelweiss Mutual Fund said in an April report, but that gap has now halved, pointing to a favourable medium-term outlook for Indian equities.

"We have seen many cycles and the market always comes back," said Lokesh Tiwari, a 43-year-old Abu Dhabi-based finance professional who typically invests 100,000 to 200,000 rupees a month in Indian equities but bought funds worth nearly 12 times that last month by repatriating his overseas money.

"Every time a correction happens, I look for opportunities."

MARKET MATTERS

India's central bank is looking into the unwinding of rupee arbitrage trades by banks after a recent order asking them to cut positions.

Banks offloaded a chunk of these positions to corporates, who are not allowed to take arbitrage bets, drawing the Reserve Bank of India's scrutiny.

The RBI is also likely to push ahead with a plan to ask lenders to report all offshore trades involving the Indian rupee, after a ballooning of arbitrage was seen to accelerate depreciation of the South Asian currency.

Read that Reuters Exclusive here.

THIS WEEK'S MUST-READ

The northern state of Haryana, home to the auto hub of Manesar, raised the minimum wage by 35% after factory workers protested rising living costs ‌as a result of the U.S.-Israeli war on Iran.

While retail prices of petrol and diesel have not been raised in India, cooking gas costs have risen.

Protests were also seen in nearby Noida, which also houses thousands of industrial units.

Higher wage costs will hurt Indian auto firms such as Tata Motors TATM.NS and Mahindra MAHM.NS, and push up prices in an economy where inflation is currently modest.

($1 = 93.1120 Indian rupees)

(Reporting by Ira Dugal; Editing by Muralikumar Anantharaman)

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

April 9 (Reuters) - Britain has awarded about 380 million pounds ($509.54 million) in funding to Agratas, the battery arm of India's Tata Group, to support the transition to zero-emission vehicles, the government-backed Advanced Propulsion Centre (APC) said on Thursday.

Here are some details on the announcement from the UK's Advanced Propulsion Centre (APC), with the funding forming part of a broader 470 million pound grant:

• The investment forms part of a broader 470 million pound government grant package and will support Agratas' planned gigafactory in Somerset, enhancing domestic electric vehicle (EV) battery production and strengthening supply chains for zero-emission transport, the APC said.

• The grant to Agratas was proposed last year by the Department for Business and Trade.

• Agratas, established to support Tata Motors TATM.NS and Jaguar Land Rover, is building what is set to be Britain's largest electric vehicle battery plant in Somerset, with expected capacity of about 40 gigawatt-hours.

• "By funding our automotive sector, we are creating the right conditions for increased investment, economic growth, and jobs across the country," Minister for Industry Chris McDonald said in a statement.

• The Somerset plant is expected to supply Jaguar Land Rover and could in future also supply other carmakers, helping support thousands of jobs.

• The remaining government grants were allocated to winners across major collaboration, research and development, and investment programmes run by the government, the APC said.

• APC works with the government and industry to support investment in zero-emission vehicle and battery manufacturing in Britain.

($1 = 0.7458 pounds)

(Reporting by Nithyashree R B and Pushkala Aripaka in Bengaluru; Editing by Tasim Zahid)

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April 7 (Reuters) - Tata Motors Ltd TATM.NS:

• LAUNCHES TATA INTRA EV PICKUP AT AN UNMATCHED PRICE OF 1.2 MILLION RUPEES

Further company coverage: TATM.NS

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April 1 (Reuters) - Tata Motors Ltd TATM.NS:

• TATA MOTORS LTD - MARCH 2026 SALES RISE 17% TO 47,976 UNITS

• TATA MOTORS - IN MARCH, MONTHLY DOUBLE-DIGIT YOY SALES GROWTH SAW SOME MODERATION AMID ONGOING CONFLICT IN WEST ASIA

• TATA MOTORS LTD - CLOSELY TRACKING GEOPOLITICAL DEVELOPMENTS AND EVOLVING MACRO ENVIRONMENT

• TATA MOTORS LTD - HAVE PUT IN PLACE APPROPRIATE MITIGATION MEASURES TO STRENGTHEN RESILIENCE AND MANAGE PRODUCTION CONTINUITY

Source text: ID:nBSEDFrK1

Further company coverage: TATM.NS

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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))

** Shares of Tata Motors TATM.NS rise as much as 2.11%

** Company says it will raise prices of its commercial vehicles by up to 1.5% from April 1

** Company says the hike is aimed at partially offsetting rising commodity prices and other input costs

** Follows price hike announced by Mercedes-Benz India last week

** Stock rated as "buy" on average by 17 analysts; median PT at 532 rupees, as per data compiled by LSEG

** YTD, stock down 6.7% vs Nifty Auto index down 11.2%

(Reporting by Mridula Kumar in Bengaluru)

(([email protected];))