TMPV

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

By Shritama Bose

MUMBAI, April 8 (Reuters Breakingviews) - It's a tough time to be in the Tata group's cockpit. The $260 billion conglomerate was already buffeted by its own leadership turbulence. Now the CEO of its beleaguered carrier Air India has quit, the carrier confirmed on Tuesday. That complicates Chair N Chandrasekaran's bid to stay in the pilot's seat of the unlisted holding company, Tata Sons.

Campbell Wilson had more than a year left on his five-year contract at the de facto national airline. But financial losses and operational issues, including a deadly crash, have been piling up since the Tatas bought it from the Indian government in 2022. Chandrasekaran, or Chandra as he's widely known, oversaw Air India's purchase, but the acquisition was driven by the emotional attachment to the asset by Ratan Tata, Tata Sons' late chair emeritus, whose family founded the airline prior to its nationalisation.

Wilson's departure also looks badly handled. He had, the airline said on Tuesday, told Chandra in 2024 that he intended to step down this year. That was ample time to find a successor. The board held discussions with prospective candidates, yet he's leaving with no one to take the helm. By contrast, rival Interglobe Aviation INGL.NS, or IndiGo, quickly found a replacement last month for outgoing CEO Pieter Elbers in British Airways veteran Willie Walsh.

It's reminiscent of the inability to resolve lingering leadership issues at the airline's parent. Tata Sons holds stakes in 25 public companies and private units, including the carrier and a semiconductor-making venture. A board meeting in June will decide if Chandra will get a third five-year term at the powerful Indian business. His current stint is due to end in 2027.

A year ago a renewal was all but guaranteed for the 62-year-old executive, who led the group's cash cow outsourcer Tata Consultancy Services TCS.NS for eight years and oversaw a turnaround of group companies, including Tata Motors Passenger Vehicles TAMO.NS. But problems at a number of subsidiaries have brought pushback from Noel Tata, the new head of the charitable trusts that control the holding firm.

To win over opponents, Chandra may have to lay out a fresh plan for turning around underwater businesses like Air India and the struggling e-commerce unit Tata Digital, Moneycontrol reported on Monday, citing sources. He will also be under pressure to chart ways for TCS to regain its edge as artificial intelligence tools disrupt the business model of India's largest outsourcer.

That makes Wilson's departure even more inopportune, lengthening Chandra's emergency to-do list. It looks increasingly like the Tata group is fighting to break out of a succession doom loop.

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CONTEXT NEWS

Air India confirmed on April 7 that CEO Campbell Wilson has resigned. It came hours after Reuters reported the news, citing an unnamed source with direct knowledge of the matter.

Air India said Wilson made known in 2024 his intention to quit this year.

Tata Sons chair N. Chandrasekaran is expected to spell out a clearer path to profitability for businesses such as Air India, Tata Digital and the group’s electronics manufacturing ventures, Indian news website Moneycontrol reported on April 6, citing unnamed officials from the Tata group.

(Editing by Antony Currie and Una Galani; Production by Ujjaini Dutta)

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

Adds details, background from paragraph 2

April 6 (Reuters) - India’s auto dealers on Monday warned of possible supply or dispatch disruptions in the near term as the West Asia conflict drove up raw material costs, even as the fiscal year's total sales hit a record high.

The broader operating environment is clouded by the conflict, the Federation of Automobile Dealers Associations (FADA) said in a statement.

The war has pushed up oil and gas prices, raising fuel and logistics costs across the auto supply chain, while also driving up prices of key metals such as aluminium, copper and steel used in vehicle manufacturing.

Last week, India's top carmaker, Maruti Suzuki MRTI.NS, said that it will likely raise prices as the war pushed up commodity prices.

A FADA survey showed that more than half of the dealers experienced some form of supply or dispatch disruption linked to the ongoing conflict, with 17.1% reporting significant delays of three or more weeks.

On the fuel-price front, 36.5% of dealers reported that rising fuel prices are moderately to significantly affecting customer purchase decisions, it added.

While the impact was most pronounced in the commercial vehicle segment, passenger vehicle and two-wheeler dealers have also flagged selective delays based on different variants.

Indian retail auto sales rose 25.28% in March, the association said.

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%, closing the financial year on a strong note on sustained momentum from tax cuts that improved affordability, FADA said.

The total retail sales for the financial year rose 13.3%.

FADA also said passenger vehicle inventory, or the average time a car remained on the showroom floor, fell for a sixth consecutive month, to about 28 days in March, compared to 52 days in March last year.

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Harikrishnan Nair)

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Adds background throughout

April 2 (Reuters) - Britain's Jaguar Land Rover on Thursday posted a 61.1% surge in fourth-quarter sales as production normalised after a hit from a cyber incident last year.

Over the past year, the Range Rover manufacturer has contended with challenges ranging from uncertainty around global trade policy to a cyber attack that halted production, and most recently, a fire at one of its suppliers.

While the 95,300 units sold to dealers in January-March were a sharp rise from the previous quarter, they were down 14.5% from a year earlier. Full-year volumes were impacted by factors including U.S. tariffs and production stoppages following the cyber incident, JLR said.

Sales of the profit-boosting Range Rover, Range Rover Sport and Defender models came in at 77.1% of the overall sales in January-March, higher than last year's share of 66.3%. The models are a meaningful contributor to parent Tata Motors Passenger Vehicles' cash flow.

JLR, Britain's largest carmaker, is owned by Tata Motors Passenger Vehicles TAMO.NS and makes up close to 80% of the Indian automaker's revenue.

Meanwhile, JLR's retail sales, including its Chinese venture with Chery 9973.HK, rose 16.2% sequentially to 92,700 units, a year-on-year decline of 14.3%.

For the year ending March 31, sales to dealers fell 23.2%, while retail sales dropped 17.8% from a year earlier.

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

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April 1 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• TATA MOTORS PASSENGER VEHICLES - MAR'26 TOTAL SALES 66,971 UNITS

• TATA MOTORS PASSENGER VEHICLES - INDUSTRY WILL NEED TO CLOSELY MONITOR GEOPOLITICAL DEVELOPMENTS TO MITIGATE POTENTIAL SUPPLY-SIDE RISKS

• TATA MOTORS PASSENGER VEHICLES - EXPECT TO DELIVER INDUSTRY-BEATING GROWTH IN FY27

Source text: ID:nBSE7ZKxWn

Further company coverage: TAMO.NS

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By Nick Carey, Rachel More and Giulio Piovaccari

LONDON/BERLIN/MILAN, March 30 (Reuters) - A laser-engraved hood inspired by Arabian architecture and a matching wood-trim interior are among the luxuries Rolls-Royce featured in a one-off Phantom Arabesque model commissioned by a Dubai customer it showcased in February before the Iran war.

Now the Middle East market, which in volume terms accounts for less than 10% of sales at most luxury carmakers but punches far above its weight in profit, is under threat just as demand is weakening almost everywhere around the globe.

A standard Rolls-Royce Phantom starts at about 430,000 pounds ($572,416), but the addition of bespoke features for wealthy Gulf buyers can push prices far above that - for some models bespoke additions can double or triple the price tag.

Rolls-Royce Motor Cars, owned by Germany's BMW BMWG.DE, revealed the Arabesque just a week after opening its second Dubai showroom, before U.S.-Israeli strikes on Iran followed by Iran's strikes on the Gulf sent shockwaves across the region.

"It's the best market in the world," Bentley CEO Frank-Steffen Walliser said earlier this month of the Middle East.

But many luxury dealerships in the Gulf closed temporarily after war broke out on February 28. Ferrari RACE.MI and Stellantis STLAM.MI unit Maserati paused deliveries this month, although both say showrooms have since reopened.

In an emailed response to questions, Rolls-Royce said it was "closely monitoring" the situation in the Middle East.

"Given the fluidity of the situation, it would be premature to speculate on longer-term impacts," the automaker added.

Meanwhile, F1rst Motors in Dubai, which sells all the top luxury car brands, shut its doors for the first few days after the war started, but has since reopened.

Director Chris Bull said the showroom is best known for its selection of Ferraris and Bugattis and sells vehicles ranging from about $250,000 all the way up to $14 million.

Bull said since F1rst Motors reopened, business is down about 30%, although sales of cars priced at more than $1.4 million have stabilised and its sales outside the United Arab Emirates remain robust.

"Obviously, there are fewer people walking in the front door ... But we're still managing to maintain a good level of business," Bull said, adding some buyers will pay up to 30,000 euros ($34,512) to fly a $7 million car out of the country.

'IT'S VERY HIGH MARGIN'

Brands including Lamborghini, like Bentley a unit of Volkswagen VOWG_p.DE, Italy's Ferrari RACE.MI, Tata Motors' TAMO.NS Jaguar Land Rover and Germany's Porsche P911_p.DE are watching nervously, hoping for a swift end to the conflict.

"It's very high margin," Volkswagen CEO Oliver Blume said of Middle East sales in a media briefing earlier this month, adding of the Iran war: "We will see an impact there for sure".

Most luxury and premium automakers do not break out profit margins by region and some, including Bentley and Rolls-Royce, no longer publish global sales numbers.

But Ferrari reported volumes in the Middle East made up 4.6% of overall sales last year, more than it sold in China and up from 3.5% in 2024. The Italian sports car maker's sales in the region are stable for now, a spokesperson said.

A hallmark of the region is limited-edition runs that allow automakers to charge hefty premiums for special wood trims, mother-of-pearl inlays or even gold leaf finishes.

In 2024, for instance, JLR sold 20 "Sadaf" edition Range Rover Sport SV vehicles for about 330,000 pounds each - around three times the starting price in Britain.

Former Aston Martin AML.L CEO Andy Palmer said that during his tenure the first calls would be to offer wealthy collectors in the Middle East high-margin special editions.

"You almost didn't need to ask," Palmer told Reuters.

Now this bespoke business in the region has all but ground to a halt, industry executives said.

"People in the Middle East have other thoughts than looking for a new Bentley at the moment," Bentley CEO Walliser said.

'IT'S AN UTTER DISASTER'

As their U.S. sales have been hit by uncertainty over tariffs, demand in China and Europe has slumped, leaving high-end automakers with few remaining sources of growth and even contemplating the possibility of cutting production.

Even before the Iran war, Bentley's sales fell 5% last year, although the carmaker's CFO Axel Dewitz told reporters this month the company does not yet see the need to cut production.

"However, if the current crisis endures for a couple of weeks, I think we would need to revisit the situation," he said.

Lamborghini CEO Stephan Winkelmann said this month it has faced many challenges since the COVID-19 pandemic, adding that "there is no new American market out there that we can tap into to boost our sales volumes".

Sales in Russia halted after Moscow's invasion of Ukraine in 2022, the luxury market in China has "collapsed", tariffs have hit Lamborghini's most important market in the United States and now business is at a standstill in the Middle East, he said.

For former Aston Martin CEO Palmer, the situation is like no other he can remember.

"For a manufacturer of premium and luxury cars in particular, it's an utter disaster."

($1 = 0.7512 pounds)

($1 = 0.8693 euros)

(Reporting by Nick Carey;
Editing by Josephine Mason and Alexander Smith)

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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)

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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)

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March 20 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• TATA MOTORS - TO INCREASE PRICES OF PASSENGER VEHICLES FROM APRIL 1, 2026

• TATA MOTORS - WEIGHTED AVERAGE PRICE INCREASE OF 0.5% FOR ICE PORTFOLIO FROM APRIL 1, 2026

• TATA MOTORS PASSENGER VEHICLES - REVISION IS BEING UNDERTAKEN TO PARTIALLY OFFSET CONTINUED INCREASE IN INPUT COSTS

Source text: ID:nBSE8hsnJg

Further company coverage: TAMO.NS

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Repeats earlier story with no changes to the text

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)

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March 16 (Reuters) - Tata Motors TATM.NS will raise prices of its commercial vehicles by up to 1.5% from April 1, the auto maker said on Monday, citing higher input costs.

This follows a price hike announced by Mercedes-Benz India MBGn.DE last week.

Here are some details:

* The price increase will be up to 1.5% across Tata Motors’ commercial vehicle range

* Hikes will vary depending on the model and variant

* The increase is aimed at partially offsetting rising commodity prices and other input costs

(Reporting by Aleef Jahan in Bengaluru; Editing by Mrigank Dhaniwala)

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March 13 (Reuters) -

• RADHAKISHAN SHIVKISHAN DAMANI SOLD 1.6 MILLION SHARES IN TATA MOTORS PASSENGER VEHICLES VIA BLOCK DEAL - BSE DATA

Further company coverage: TAMO.NS

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March 9 (Reuters) -

• JAGUAR LAND ROVER: MAY OFFER USD‑DENOMINATED SENIOR NOTES IN UP TO TWO SERIES, WITH A 3‑YEAR AND/OR 5‑YEAR TENOR

Source text: https://media.jaguarlandrover.com/news/2026/03/jaguar-land-rover-automotive-plc-proposed-offering-senior-notes

Further company coverage: TAMO.NS

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March 5 (Reuters) - India’s retail vehicle sales rose 25.6% in February on strong demand for two-wheelers and passenger vehicles, as the momentum from tax-cut measures persisted, the Federation of Automobile Dealers Associations (FADA) said on Thursday.

(Reporting by Meenakshi Maidas in Bengaluru)

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By Nick Carey, Gilles Guillaume and Julia Payne

LONDON/PARIS/BRUSSELS, March 3 (Reuters) - The European Union is treading a fine line with plans to introduce 'Made in EU' rules for the bloc's auto industry, seeking to revive local manufacturing without damaging relations with major trading partners.

The plans, due on Wednesday as part of a drive to boost EU industry more broadly, are complicated by divisions between member states, with France taking a more protectionist line and Germany more worried about potential retaliation.

They also face pushback from automakers that rely on non-EU supplies or, like Ford F.N and Jaguar Land Rover TAMO.NS, have major operations in nearby non-EU countries that are also lobbying Brussels. Britain, Turkey and Morocco are interested in 'Made in Europe' rules - but only if they are not shut out.

The stakes are high.

"If we don't do this, there will be massive relocations," Christophe Perillat, the CEO of French auto supplier Valeo said on Friday. "I've never seen an industry go and come back."

RETALIATION FEARS

Under the latest leaked version of the proposed Industrial Accelerator Act, an electric vehicle would need 70% of the cost of its parts to be manufactured in the bloc, excluding the battery, to qualify for EU subsidies.

The draft also requires minimum EU-based content in the battery pack, although excluding cells acknowledges China's dominance of the global battery cell supply chain.

Europe's auto sector has long been under pressure, a squeeze intensified by the arrival of Chinese rivals rolling out cheaper, tech-heavy EVs.

French small suppliers association Fiev says its members shed half their workforce between 2007 and 2024, and president Jean-Louis Pech warns employment could halve again by the end of the decade without action.

Antoine Doutriaux, CEO of Plastivaloire, which makes plastic interior parts and closed a French plant last year, says not mandating local content "would be very dangerous for European industry". He says Chinese rivals pay 30% less for raw materials and "don't play by the same rules".

But Germany's automakers sell more than a quarter of their vehicles in China, the world's largest auto market, and fear strict local-content rules could trigger a trade war.

"Further measures perceived as protectionist, which may include local content requirements, carry the risk of backlash from other countries," said Karoline Kampermann, head of economic policy, foreign trade, SMEs and taxation at German car lobby group VDA.

China rejects suggestions its automakers benefit from unfair subsidies and has retaliated against other EU measures it considers protectionist, such as EU import tariffs on Chinese-made EVs.

'WALKING ON EGGSHELLS'

Global auto supply chains are so complex, and so integrated, that determining local-content levels in individual models is no easy feat.

French firm A2MAC1, which strips down cars for automakers to assess competitors' products, reviewed two European-made EVs for Reuters – Volkswagen's VOWG_p.DE ID.3 and Renault's RENA.PA Renault 5 – based on cost of parts by country.

It found the ID.3 sourced 86% of its content by value from the EU and just 7% from China, not including raw materials. It easily qualifies as made in the EU.

Renault says up to 80% of suppliers for the Renault 5 are within 300 km (186 miles) of its northern France assembly site. But A2MAC1 found EU-based parts accounted for only 51% of the car's cost, with China supplying 41%. Excluding the battery – the component most dependent on China – lifts EU content to about 76%. On that basis the Renault 5 would meet the threshold.

A further challenge is that, under the Commission's proposal, only parts from EU members plus Iceland, Liechtenstein and Norway - the European Economic Area - would count as local content, though it would consider parts from "trusted partners" and take World Trade Organization agreements into account.

Ford's European supply chain, for example, depends heavily on Britain and Turkey, and European president Jim Baumbick argues that "excluding them would weaken production inside the EU itself".

Turkey is a low-cost manufacturing hub for Toyota 7203.T, Stellantis STLAM.MI, Hyundai 005380.KS and Renault. Cengiz Eroldu, president of Turkish automaker association OSD, says exclusion "poses a great risk to our country's investment environment" and that inclusion "is a strategic necessity".

But including Turkey could open a loophole for Chinese automakers to build plants there, saving on energy and labour while still qualifying for EU subsidies, said Chris Heron, secretary general of lobby group E-Mobility.

"It really is like walking on eggshells," he said.

(Reporting By Nick Carey in London, Gilles Guillaume in Paris and Julia Payne in Brussels. Additional reporting by Christoph Steitz in Frankfurt and Can Sezer in Istanbul. Editing by Mark Potter)

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March 1 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• TATA MOTORS PASSENGER VEHICLES - FEBRUARY 2026 TOTAL SALES STOOD AT 63,331 UNITS

Further company coverage: TAMO.NS

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Updates to change source, add details throughout

By Aditya Kalra

NEW DELHI, Feb 24 (Reuters) - India's Tata Sons has postponed a decision on reappointing N Chandrasekaran as chairman after the head of its powerful charity arm opposed the move during a closed-door meeting on Tuesday, a source with direct knowledge of the matter said.

The delay underscores fresh tension in the Tata group's leadership transition and has revived worries of a repeat of the 2016 public clash between Tata Trusts and Tata Sons that bruised the reputation of India's most storied conglomerate.

Tata Trusts owns about 66% of Tata Sons, the holding company of the Indian salt-to-software group that houses 30 companies including Tata Consultancy Services TCS.NS, Tata Motors TATM.NS and Air India.

After family patriarch Ratan Tata died in 2024, his half-brother Noel Tata became chairman of Tata Trusts, putting him at the top of the group's ownership structure even as operational control stayed with Tata Sons.

Last year, Tata Sons and Tata Trusts clashed over board representation, strategy and how to handle the planned exit of minority shareholder Shapoorji Pallonji, a dispute that led to the ouster of a Tata Sons director.

At Tuesday's board meeting, four of six directors supported Chandrasekaran's reappointment, while Noel Tata opposed it and sought several conditions, including a commitment that Tata Sons would never be listed, the source said.

Chandrasekaran, whose term ends in February 2027, said he could not give such an assurance and would accept a deferment on his appointment if Tata Trusts preferred, the source added.

Tata Sons did not respond to an email seeking comment.

Chandrasekaran, 62, joined the Tata group in 1987 and rose to become TCS CEO in 2009 before taking over as Tata Sons chair in 2017.

Over the past year, he has faced challenges including intense regulatory scrutiny on Air India after a fatal crash, pricing pressure at crown-jewel TCS, and a cyberattack at Jaguar Land Rover that disrupted production and hit Britain's economic output.

(Reporting by Chandini Monnappa and Kashish Tandon in Bengaluru. Editing by Mrigank Dhaniwala, Dhanya Skariachan and Mark Potter)

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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)

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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

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Adds CEO comments of France delays in paragraphs 2 and 4, analyst comment in paragraph 5

By Laura Contemori

Feb 12 (Reuters) - Italian truckmaker Iveco IVG.MI, set to be acquired by India's Tata Motors TAMO.NS, reported a 28% drop in its full-year adjusted operating profit on Thursday, hit by weaker European truck demand and delays at a French bus plant.

Delays at the Annonay bus plant in France left many vehicles unfinished and undelivered at the end of the year, resulting in a one-off negative cash flow impact of 200 million euros, CEO Olof Persson said during a conference call.

Iveco's adjusted operating profit fell to 645 million euros ($765 million) last year, from 892 million euros in 2024.

"We have a solid plan to deliver delayed buses in 2026 and thereby recover the negative impact," Persson said, adding that the group expected extra ramp‑up costs at the site to ease through the first half of the year.

J.P. Morgan, in its take on the results, said 2025 was a challenging year marked by declining European market for both light commercial vehicles and heavy-duty trucks, which weighed on Iveco's volumes and profitability.

Iveco on Wednesday called an extraordinary general meeting for March 25 to approve a planned sale of its defence business to Italy's Leonardo LDOF.MI ahead of Tata's takeover.

The sale of the defence business and Tata Motors' tender offer are both progressing in line with prior timelines, Persson said in a statement. The defence sale is expected to close by March, with the tender offer due to be completed in the second quarter.

($1 = 0.8432 euros)

(Reporting by Laura Contemori in Gdansk; Editing by Milla Nissi-Prussak)

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Feb 10 (Reuters) -

• JAGUAR LAND ROVER NORTH AMERICA, LLC IS RECALLING 2,278 U.S. VEHICLES - NHTSA

• JAGUAR LAND ROVER NORTH AMERICA, LLC IS RECALLING SOME U.S. VEHICLES AS A HIGH VOLTAGE BATTERY THAT OVERHEATS INCREASES THE RISK OF A FIRE.- NHTSA

Source: https://www.nhtsa.gov/search-safety-issues#recall

(([email protected];))

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 5 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• TATA MOTORS PASSENGER VEHICLES Q3 CONSOL NET LOSS 34.86 BILLION RUPEES

• TATA MOTORS PASSENGER VEHICLES Q3 CONSOL TOTAL REV FROM OPS 701.08 BLN RUPEES

• TATA MOTORS PASSENGER VEHICLE ON JLR: FY26 GUIDANCE IS REAFFIRMED

• TATA MOTORS PASSENGER VEHICLE ON JLR: FY26 GUIDANCE OF EBIT MARGIN IN THE RANGE OF 0% TO 2% AND FREE CASH OUTFLOW OF £2.2BN TO £2.5BN

• TATA MOTORS PASSENGER VEHICLE ON JLR: INVESTMENT SPEND IS EXPECTED TO REMAIN AT £18BN OVER THE FIVE-YEAR PERIOD FROM FY24

• TATA MOTORS PASSENGER VEHICLE ON JLR: BUSINESS WELL POSITIONED FOR SIGNIFICANTLY IMPROVED PERFORMANCE IN Q4

• TATA MOTORS PASSENGER VEHICLES - OVERALL, WE EXPECT A SHARP IMPROVEMENT IN Q4, LED BY NORMALIZATION OF JLR VOLUMES

• TATA MOTORS PASSENGER VEHICLES - TATA MOTORS PV IS WELL POISED TO ACCELERATE ITS GROWTH TRAJECTORY IN FY27

• TATA MOTORS PASSENGER VEHICLES - Q3 RESULTS INCLUDE 15.97 BLN RUPEES ONE-TIME CHARGE

Further company coverage: TAMO.NS

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The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Refiles to fix typo in advisory.

By Una Galani

HONG KONG, Feb 3 (Reuters Breakingviews) - Investment banking is a daunting business in Asia Pacific. The regional bosses of some Wall Street giants liken their job to corralling a loose confederation of mercenaries, or battling a three-headed monster. Such are the challenges of running a sprawling geography full of first-time fee payers, with mixed levels of financial sophistication among clients. As activity rebounds, though, the region seems to be at a positive inflection point, with many of its major markets firing up at once.

Globally, the art of dealmaking is back. The world's top executives are eyeing big acquisitions as borrowing costs fall and the shock of U.S. President Donald Trump's trade war recedes. In Asia Pacific, total investment banking revenue across deal advice, equity and debt underwriting hit almost $17 billion in 2025, according to Dealogic. That was below 2021's $22 billion level but better than in the intervening years. Volumes so far in 2026 look set to outpace the peak four years ago.

The investment banking business in Asia has changed since the slump. While China and Australia once dominated the action for Western firms, tensions between Washington and Beijing killed off the most lucrative businesses: Chinese outbound acquisitions and U.S. listings by firms from the People's Republic. That was a space Goldman Sachs GS.N and Morgan Stanley MS.N dominated, thanks to their powerful technology-industry franchises among other things.

Today, the fees up for grabs are more broad-based. Chinese firms have a pent-up demand for capital, especially in the booming innovation economy spanning artificial intelligence, biotechnology and robotics. Down Under, miners are riding another mergers and acquisition boom: JPMorgan JPM.N is among the advisers to Rio Tinto RIO.L on its hoped-for Glencore GLEN.L deal, which would create by far the world's largest mining company worth more than $200 billion.

There's also a steady stream of sizable deals coming from historically quieter countries. Take India, where the debut of Jio in Mumbai will likely take the crown for the region's largest 2026 initial public offering. Bankers are hoping to win Mukesh Ambani's telecom giant a valuation as high as $170 billion. In Japan, meanwhile, corporate governance reforms have stirred up a domestic M&A boom, making the country a top destination for buyout barons, led by Bain Capital and KKR KKR.N.

Helped by these two markets, Citigroup C.N closed 2025 with its best revenues in Asian investment banking for over a decade. The U.S. firm, which is turning itself around under CEO Jane Fraser, advised on Nippon Steel's 5401.T acquisition of U.S. Steel, and won mandates when South Korean firms Hyundai 005380.KS and LG 003550.KS listed their Indian businesses in Mumbai. Morgan Stanley for the second year running generated the most fees in the region, encompassing M&A, equity and debt underwriting. Among Western banks, JPMorgan followed.

The locals are growing ever more powerful, however, with Chinese banks like CITIC Securities 600030.SS rising up the rankings because of their dominance in certain onshore businesses that global firms don't compete for. It means the real addressable market for Wall Street firms in Asia is probably around half the overall regional pie.

In equity underwriting, fee rates are compressing, instead of trending higher towards U.S. levels. As a percentage of total proceeds, revenue plunged from nearly 3% in 2000 to barely 1.5% in 2024, LSEG data shows. Bankers say fees on convertibles and block trades remain resilient. But Hong Kong IPO activity is also now dominated by secondary listings by firms whose shares already trade on mainland bourses. That's less demanding work, and so it pays less. Morgan Stanley Asia Pacific CEO Gokul Laroia admits the problem, though stabilising, is "pretty systemic".

Quirky brokerage fees have helped to cushion the blow for banks. Investors buying shares in Hong Kong IPOs pay 1% to firms handling stock sales. The charge was rarely talked about in the good times. It was introduced over 30 years ago when brokers owned the bourse that is now operated by Hong Kong Exchanges and Clearing. The fee is not enough to compensate for wider compression, though. CATL's Hong Kong offering paid a 0.9% fee and 1% brokerage, for example, turning a derisory sum into one that's still nothing to brag about.

Meanwhile, outbound Chinese acquisitions - including Zijin Mining's 2899.HK bid for Allied Gold - are likely to remain a trickle given political sensitivities in Europe and North America. And other cross-border deals, such as UK drugmaker AstraZeneca's AZN.L licensing of weight-loss drugs from China's CSPC 1093.HK, involve only small upfront payments, capping the reward for bankers. In India, tycoons and state companies remain stingy fee payers and insist on building incentives into remuneration for capital-market deals. These clauses, which include variable components paid out depending on which investors are brought to a deal, are time-consuming to negotiate. Banks that are picky about their clients are better off. Hexaware HEXW.NS, backed by U.S. private equity firm Carlyle, paid a 2.5% fee for its Mumbai IPO. By contrast, Reliance's mega offering will offer banks more prestige than pay.

The biggest shift is in Japan. High levels of private equity-led M&A mean the country is taking a bigger slice of regional fees. Here, Morgan Stanley is the envy of its peers. Its joint venture since 2008 with Mitsubishi UFJ Financial 8306.T, which connects the Japanese lender's clients to investment bankers worldwide, underpins the Wall Street giant's top regional position. It also gives the U.S. investment bank extra heft outside of Japan: the duo came together to provide a $4.5 billion bridge loan for Tata Motor's TAMO.NS acquisition of Italy's Iveco, for example.

Morgan Stanley's partnership was underestimated when it was formed as part of a capital call for the U.S. bank during the global financial crisis. Replicating it now looks tricky. So to compete in Japan, global firms are ramping up their headcount and expanding their coverage - especially for the middle market, where the bulk of buyouts happen. Goldman's decision last year to combine its investment banking businesses in Australia, Japan, and the rest of Asia into a single, unified regional unit underscores the shifting pressures and opportunities for the bank run by David Solomon.

Geopolitical tension between the U.S. and China is also reshaping fortunes. Washington is allowing U.S. banks a wide berth: Morgan Stanley and Goldman, for example, advised on the Hong Kong IPO of artificial intelligence startup MiniMax this year. But Chinese clients are being selective. If they opt to have any international advisers on deals, they increasingly insist on using at least one non-U.S. firm. That's a tailwind for Switzerland's UBS UBSG.S and Deutsche Bank DBKGn.DE.

Investment banking activity in Asia may be lifting off. But extracting fees won't be easy for Wall Street firms.

Follow Una Galani on Linkedin and X.

CONTEXT NEWS

Asia Pacific core investment banking fees amounted to $16.5 billion in 2025, according to Dealogic. Core investment banking comprises equity capital markets, mergers and acquisitions and debt capital markets. It excludes loans. Fees peaked at a total of $21.8 billion in 2021.

(Editing by Liam Proud; Production by Shrabani Chakraborty)

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

Feb 1 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• TATA MOTORS PV - SALES REACH 71,066 UNITS IN JANUARY 2026

Source text: ID:nNSEWg5QQ

Further company coverage: TAMO.NS

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Jan 29 (Reuters) - India's top commercial vehicle maker Tata Motors TATM.NS reported a 60.4% decline in third-quarter profit on Thursday, hurt by a one-time charge.

The truck and bus manufacturer reported a profit of 5.61 billion rupees ($61 million) for the quarter to December 31, down from 14.17 billion rupees the year before.

The company took a one-time charge of 15.45 billion rupees due to demerger related costs and India's recently enacted labour code.

($1 = 91.9980 Indian rupees)

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

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By Shivangi Acharya and Aditi Shah

NEW DELHI, Jan 28 (Reuters) - India will immediately slash duties on high-end European cars to 30% from as high as 110% under its new trade deal with the EU, an official said, opening the tightly controlled market to luxury carmakers like BMW BMWG.DE and Mercedes-Benz MBGn.DE.

India and the European Union finalised a long-delayed deal on Tuesday that will cut tariffs on most goods and boost trade, at a time when governments worldwide are seeking to hedge against fickle U.S. policy and manage growing trade tensions.

India is the third-largest car market globally by sales after the United States and China. But its domestic auto industry has been among the world's most protected, with the government levying tariffs of between 70% and 110% on imported cars.

PRICIEST EUROPEAN CARS BENEFIT FROM BIGGEST DUTY CUTS

While India agreed under the deal to reduce import tariffs on cars above an import price of 15,000 euros ($17,963) to 10% over time, details of how the reductions will be implemented were not disclosed publicly.

A senior Indian government official, however, said New Delhi agreed to immediately reduce import duties on 100,000 traditional internal combustion engine cars annually split between three price categories.

European cars with an import price of 15,000 euros to 35,000 euros will see tariffs reduced to 35%, with annual imports capped at 34,000 units, said the official, who asked not to be named as the deal still requires legal vetting.

Cars priced 35,000 euros to 50,000 euros will be charged a 30% duty, with imports limited to 33,000 units a year, the official said. And 33,000 cars priced over 50,000 euros will also be subject to a reduced tariff of 30%.

The two highest price categories will see the largest tariff reductions. And the cap for all three categories combined will be raised to 160,000 units over 10 years, the official said.

India's trade ministry did not immediately respond to a request for comment on the details of the agreement.

MORE INDIANS DEVELOPING A TASTE FOR LUXURY

At a time when a growing number of Indians are developing a taste for opulence - from expensive homes to watches and even bathroom fittings - luxury cars made up less than 1% of the 4.4 million passenger vehicles sold in the country last year.

While executives have said that lower tariffs are unlikely to translate into immediate price cuts, they said the reductions will allow them to bring more vehicles to the market.

Lower import taxes should also be a boost for other European automakers such as Volkswagen VOWG.DE, Renault RENA.PA and Stellantis STLAM.MI, which have said increased trade will also result in increased technology transfer and shared supply chains.

LOCAL EV MANUFACTURERS TO REMAIN PROTECTED FOR NOW

India will, meanwhile, also cut import duties to 30% to 35% on a total of 20,000 European-made electric vehicles, the official said, but only five years after the trade deal is implemented.

Those tariff cuts will only apply to EVs priced above 20,000 euros in order to protect domestic players like Tata Motors TAMO.NS and Mahindra MAHM.NS.

Similar to combustion engines, the duty on EVs will reduce to 10% over five years and the annual import quota will rise to 90,000 units, the official added.

($1 = 0.8367 euros)

(Reporting Shivangi Acharya; Editing by Joe Bavier)

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Adds byline and dateline

By Aditi Shah and Philip Blenkinsop

NEW DELHI/BRUSSELS, Jan 25 (Reuters) - India plans to slash tariffs on cars imported from the European Union to 40% from as high as 110%, sources said, in the biggest opening yet of the country's vast market as the two sides close in on a free trade pact that could come as early as Tuesday.

Prime Minister Narendra Modi's government has agreed to immediately reduce the tax 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, easing access to the Indian market for European automakers such as Volkswagen, Mercedes-Benz and BMW.

The sources declined to be identified as the talks are confidential and could be subject to last-minute changes. India's commerce ministry and the European Commission declined to comment.

PACT ALREADY DUBBED 'MOTHER OF ALL DEALS'

India and the EU are expected to announce on Tuesday the conclusion of protracted negotiations for the free trade pact, after which the two sides will finalise the details and ratify what is being called "the mother of all deals.

The pact could expand bilateral trade and lift Indian exports of goods such as textiles and jewellery, which have been hit by 50% U.S. tariffs since late August.

India is the world's third-largest car market by sales after the U.S. and China, but its domestic auto industry has been one of the most protected. New Delhi currently levies tariffs of 70% and 110% on imported cars, a level often criticised by executives, including Tesla chief Elon Musk.

New Delhi has proposed slashing import duties to 40% immediately for about 200,000 combustion-engine cars a year, one of the sources said, its most aggressive move yet to open up the sector. This quota could be subject to last-minute changes, the source added.

Battery electric vehicles will be excluded from import duty reductions for the first five years to protect investments by domestic players like Mahindra & Mahindra MAHM.NS and Tata Motors TAMO.NS in the nascent sector, the two sources said. After five years EVs will follow similar duty cuts.

MARKET CURRENTLY DOMINATED BY SUZUKI AND LOCAL MAKERS

Lower import taxes will be a boost for European automakers such as Volkswagen VOWG.DE, Renault RENA.PA and Stellantis STLAM.MI, as well as luxury players Mercedes-Benz MBGn.DE and BMW BMWG.DE which locally manufacture cars in India but have struggled to grow beyond a point in part due to high tariffs.

Lower taxes will allow carmakers to sell imported vehicles for a cheaper price and test the market with a broader portfolio before committing to manufacturing more cars locally, said one of the two sources.

European carmakers currently hold a less than 4% share of India's 4.4-million units a year car market, which is dominated by Japan's Suzuki Motor 7269.T as well as homegrown brands Mahindra and Tata that together hold two-thirds.

With the Indian market expected to grow to 6 million units a year by 2030, some companies are already lining up new investment.

Renault is making a comeback in India with a new strategy as it seeks growth outside Europe, where Chinese carmakers are making strong inroads, and Volkswagen Group is finalising its next leg of investment in India through its Skoda brand.

(Reporting by Aditi Shah and Philip Blenkinsop; Additional reporting by Lili Bayer in Brussels, with Shivangi Acharya in New Delhi; Editing by David Holmes)

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

Adds graphics, no change to text

By Gilles Guillaume and Aditi Shah

PARIS/NEW DELHI, Jan 23 (Reuters) - France's Renault RENA.PA is banking on the cult following of its Duster SUV to help revive its Indian business, bringing back a nameplate that had better brand-recognition than the automaker itself before regulatory change led to its demise.

The smallest by sales of so-called legacy automakers plans to elevate its line-up to more premium models under new CEO Francois Provost, who is tasked with growing Renault globally as Chinese rivals make inroads into its core European market.

Under the strategy, which has not previously been reported in detail, Renault will target wealthier rather than entry-level drivers as it seeks to recover market share that has dwindled over the past decade to less than 1% from a high of 4%.

It will begin on January 26 - India's Republic Day - by unveiling a Duster built to current safety and emission regulations as well as latest tastes and needs, Reuters has learned in interviews with Provost as well as five company sources and suppliers. That will be followed by a larger SUV like its Dacia Bigster and an electric vehicle, sources said.

"Previously, our strategy was to offer a car to all Indians. That is not my strategy," Provost, CEO since the summer when Renault lowered its profit forecasts, said in an interview. "I am targeting the middle class, which is growing in India and wants competitively priced but attractive cars."

Renault will also begin sourcing components in India for vehicles built in other markets, mainly South America, Provost said, akin to peers such as Stellantis STLAM.MI, Volkswagen VOWG.DE and Honda 7267.T.

The automaker now has full ownership of a factory in southern India that it once shared with Nissan and which has an annual capacity of 500,000. It will continue building cars for Nissan until 2032 and is evaluating the potential for export.

INDIA SET FOR GROWTH SURGE

The India revival is aimed at increasing sales beyond Europe. Last year Renault derived almost 70% of sales from the slow-growing region, made increasingly competitive with the influx of Chinese entrants such as EV leader BYD 002594.SZ.

Renault has launched a number of bestselling vehicles in recent years but profit margin pressure has weighed on its share price, dragging its valuation to around 10 billion euros ($11.69 billion), less than half that of Stellantis.

Last year, the French carmaker lifted non-European sales by nearly 12% by expanding in Latin America and South Korea. However, prospects in India could be even greater.

Sales in the world's third-largest car market are set to touch 6 million by 2030, up 36% from 2025, S&P Mobility data showed, with a rapid increase in demand for SUVs and premium vehicles. That forecast takes into account tough investment rules that shut out Chinese carmakers.

"Renault needs to solidify its market share in its high-growth markets," said Alexis Albert, equity fund manager at DNCA Finance, a Renault investor. Mature markets like Europe are unlikely to grow significantly, he said.

RISE OF THE SUV

Renault entered India in 2005 and had its first hit in 2012 as the competitively priced Duster SUV stood out in a market dominated by hatchbacks and sedans.

By 2016, it held 4% of the passenger vehicle market, making India one of its top 10 locations. However, it pulled the Duster almost five years ago, baulking at the cost of bringing it in line with new emissions standards.

In the meantime, India has seen a raft of SUVs from domestic makers such as Mahindra & Mahindra MAHM.NS and Tata Motors TAMO.NS, as well as South Korea's Hyundai Motor >.

The category accounts for more than half of the Indian market versus 10% when the Duster first launched, Renault said.

"This will be Renault's third attempt" at making a splash in India after the Duster and ultra-low-cost Kwid, said former Nissan COO Andy Palmer. "I think four times would be beyond everybody, because then everybody knows that you're not serious about doing it properly."

MAKE OR BREAK

Renault plans to at least double its India line-up, which consists of the Kwid and small cars Kiger and Triber.

Sales of the Duster are likely to begin in February and will be available with a hybrid powertrain for the first time in India, said one of the sources, who all declined to be identified as they were not authorised to speak with media.

Considering the faith placed in the Duster name, that SUV represents a make-or-break proposition, the person said.

Renault expects Duster production to reach 130,000 to 140,000 vehicles annually, three suppliers said, potentially more than tripling its 2025 India sales.

Like all automakers, Renault needs to update or introduce new models every six months to keep customers engaged, said S&P Global auto analyst Gaurav Vangaal. There is also the need for "an aggressive sales strategy supported by a robust customer follow-up process" to keep the momentum going, he said.

Under its broader international game plan, Renault said it will spend 3 billion euros by 2027 launching Renault-brand models in India, Latin America, South Korea, Turkey and North Africa. It declined to comment on how much it will commit only to India, a market where rival Suzuki 7269.T plans to invest $8 billion and Hyundai $6 billion.

Provost, a 57-year-old insider who previously ran operations in Russia, South Korea and China, said capturing even a small slice of the Indian market would be a game-changer for Renault.

"I would be delighted to achieve 5% of a 6 million car market," Provost said.

(Reporting by Gilles Guillaume and Aditi Shah; Additional reporting Nick Carey in London; Editing by Dominique Patton, David Dolan and Christopher Cushing)

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