TMPV

Feb 24 (Reuters) -

• TATA SONS DEFERS BOARD MEETING - ET CITING SOURCES

• TATA SONS EXECUTIVE CHAIRMAN CHANDRASEKARAN ASKED FOR A DEFERMENT OF TALKS ON HIS REAPPOINTMENT - ET

Further company coverage: TATAS.UL

(([email protected];;))

By Aditi Shah

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

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

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

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

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

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

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

GOVERNMENT WANTS MORE EV ADOPTION, BUT SALES LAGGING

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

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

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

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

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

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

(Reporting by Aditi Shah; Editing by Joe Bavier)

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

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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Feb 12 (Reuters) - Iveco Group NV IVG.MI:

• Q4 ADJUSTED NET PROFIT EUR 133 MILLION

• Q4 ADJUSTED EBIT OF INDUSTRIAL ACTIVITIES EUR 227 MILLION

• Q4 INDUSTRIAL ACTIVIES FREE CASH FLOW POSITIVE AT EUR 1.13 BILLION

• EXTRAORDINARY TRANSACTIONS FOR SALE OF DEFENCE, TATA MOTORS TENDER OFFER ON TRACK FOR COMPLETION IN LINE WITH PREVIOUSLY COMMUNICATED TIMELINES

• Q4 REVENUES OF INDUSTRIAL ACTIVITIES EUR 3.92 BILLION

• CEO SAYS CLOSING OF DEFENCE SALE EXPECTED WITHIN MARCH 2026, COMPLETION OF TATA MOTORS TENDER OFFER IN Q2 2026

Further company coverage: IVG.MI

(Gdansk Newsroom)

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

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))

Rewrites with JLR outlook

Feb 5 (Reuters) - Tata Motors Passenger Vehicles TAMO.NS expects its UK Jaguar Land Rover unit to improve performance in the current quarter and meet its fiscal-year margin target, after the Indian carmaker swung to a third‑quarter loss on Thursday.

A cyberattack on JLR, Tata Motors' luxury unit and Britain's largest carmaker, hit sales and led to a $177.2 million one-time charge.

The attack last year forced JLR to halt production for five weeks up to early October. It cost the unit $228.5 million in the July-September period, prompting the British government to step in with a 1.5 billion pounds ($2.04 billion) loan guarantee to support the luxury carmaker's supply chain.

JLR CEO PB Balaji said JLR’s performance in the January–March quarter is expected to improve significantly from previous quarters, as the company reiterated its full‑year margin target of 0% to 2%, which it had already lowered twice following U.S. tariffs on imported vehicles and the cyberattack.

Tata Motors also maintained its forecast for JLR’s cash flow at negative 2.2 billion pounds to negative 2.5 billion pounds.

The Range Rover SUV manufacturer posted a loss of 34.86 billion rupees ($386 million) for the October-December period, down from a profit of 54.06 billion rupees the previous year.

JLR accounts for up to 80% of its parent's revenue, with the domestic business forming the remainder. It reported a 43% decline in sales, excluding that of its Chinese joint venture, with normal production levels following the shutdown resuming only around mid-November.

JLR's quarterly earnings before interest and taxes (EBIT) margin, a closely watched indicator of the company's operational profitability, slid to negative 6.8%, from positive 9% the year before.

Tata Motors' domestic business posted a 22% rise in local sales and exports.

The company's quarterly revenue fell 25.8% to 696.05 billion rupees.

Tata Motors' shares closed 0.4% lower in Mumbai, ahead of reporting results.

($1 = 90.3050 Indian rupees)

($1 = 0.7364 pounds)

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

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

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

(([email protected];;))

Adds details of quarterly results, background from paragraph 3

Jan 29 (Reuters) - India's top commercial vehicle maker Tata Motors TATM.NS reported a 60.4% decline in quarterly profit on Thursday, hurt by one-time charges related to demerger costs and new labour codes, while revenue grew 20% on tax-cut-driven demand.

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 a year earlier.

The company took a one-time hit of 15.45 billion rupees, with 9.62 billion rupees tied to demerger costs and 5.74 billion rupee impact from the labour codes.

Tata Motors split from the group's passenger vehicles arm TAMO.NS in October last year and made its trading debut as a separate entity in November.

Profit excluding taxes and the one-time charges jumped 45% to 23.18 billion rupees.

SALES GET TAX-CUT BOOST

Sales of commercial vehicles got a shot in the arm after India in late September cut taxes on such vehicles to 18% from 28% earlier.

Commercial vehicles are used for a wide range of activities, from construction and freight to public transport and mining. Lower prices helped fleet operators go for long-delayed replacement of older vehicles, analysts have said.

The tax cuts helped boost domestic sales of commercial vehicles by 22% during the December quarter, with Tata's rising 18%.

The company's overall sales grew 21% in the October-December period, boosting revenue to 203.15 billion rupees from 168.97 billion rupees the year before.

Demand is expected to strengthen in the fourth quarter across most segments, the company said in a press release.

Shares of the company closed 0.5% higher before the results.

($1 = 91.9980 Indian rupees)

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

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

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)

(([email protected]))

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

By Shritama Bose

MUMBAI, Jan 15 (Reuters Breakingviews) - China-India ties are beginning to thaw. New Delhi may lift a five-year-old ban on companies from the People's Republic bidding for official contracts to revive commercial ties with its neighbour. That potentially paves the way to further lift curbs on Chinese investments too, but any easing will be capped by both sides.

India is planning to scrap restrictions, imposed after a deadly 2020 border clash, on Chinese bidders in government infrastructure and other projects, Reuters reported on January 8, citing sources. Alongside smoother visa approvals, it signals willingness to reciprocate China's gradual easing of export curbs on rare earth magnets after Indian Prime Minister Narendra Modi's visit to China in September.

The urgency to go further is rising. Net foreign direct investment into the country fell in the year to March 2025, though that is starting to pick up. Even so, strained bilateral ties with Washington mean the $4 trillion economy is grappling with a 50% tariff on exports to the United States, its top trading partner.

Moreover, despite border tensions, India's trade deficit with China has doubled over the last five years to $99 billion for the year ended March 2025. Under the current policy of applying extra scrutiny on Chinese-origin investments, the approval rate is just 15%, a person familiar with the matter told Breakingviews, implying a decent pipeline of investments waiting in the wings.

An easy place to start would be in manufacturing. Local smartphone operations from Apple AAPL.O to Xiaomi 1810.HK, for example, rely on mostly low-tech machinery, chips, displays, batteries and other inputs imported from China. Allowing some of those suppliers to set up factories in India makes sense. The same is true for textiles and plastics.

Yet trust issues persist. New Delhi is unlikely to open the floodgates in strategic sectors where it wants to protect its own domestic firms. In solar power, Adani Enterprises ADEL.NS has invested huge sums but remains highly dependent on Chinese panel makers. That might open a door for firms like JinkoSolar JKS.N and Longi Green Energy 601012.SS to establish a toehold in the market.

But in other areas like electric vehicles, India's appetite for Chinese investments will reach its limits. The $120 billion BYD 002594.SZ is hoping to manufacture in India but faces opposition from established groups like Mahindra & Mahindra MAHM.NS and Tata Motors Passenger Vehicles TAMO.NS.

Officials might demand BYD build its marques and batteries from scratch locally, potentially in partnership with an Indian group. That would require a degree of technology transfer that Chinese firms are unlikely to agree to: Bloomberg reported on Monday, citing sources, that Reliance Industries RELI.NS has paused plans to build lithium-ion batteries after it failed to license technology from Xiamen Hithium Energy, which the Indian group denies.

India's courting of Chinese capital only goes so far.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

India's Ministry of Finance plans to scrap five-year-old restrictions on Chinese firms bidding for government contracts, Reuters reported on January 8, citing two unnamed official sources.

New Delhi is weighing a proposal to exempt offshore investments for holdings of up to 26% in local companies from additional screening requirements introduced in 2020, Mint newspaper reported on January 1, citing two unnamed people familiar with the matter. The exemption will apply as long as the foreign entity exercises no management control and holds no seat on the company’s board, the report added.

(Editing by Robyn Mak; Production by Ujjaini Dutta)

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

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

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

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

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

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

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

Source text: [ID:]

Further company coverage: ASOK.NS

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Jan 12 (Reuters) - Self-driving truck startup PlusAI said on Monday it would launch Southern Europe's first programme to test heavy-duty autonomous trucks, expanding its partnership with Iveco Group brand IVECO.

The programme will develop two IVECO S‑Way trucks equipped with PlusAI's Level 4 autonomous driving system on a roughly 300-km freight route between Madrid and Zaragoza, with tests starting in 2026 and a safety operator on board.

The trials will be carried out with Spanish logistics operator Sesé and the regional government of Aragon. PlusAI, headquartered in Silicon Valley with operations in Europe and the U.S., has worked with Iveco for several years on joint research and testing.

PlusAI is moving towards a planned public listing on Nasdaq through a business combination with blank check company Churchill Capital Corp IX CCIX.O, expected to close in the first quarter of 2026.

Iveco is set to be delisted after India's Tata Motors TAMO.NS announced in July it would buy the company in a 3.8-billion-euro deal.

(Reporting by Laura Contemori; Editing by Matt Scuffham)

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Jan 8 (Reuters) - The U.S. Supreme Court is set to issue rulings on Friday on cases related to the legality of tariffs imposed by President Donald Trump under the International Emergency Economic Powers Act.

The administration faces the possibility of having to refund nearly $150 billion paid in tariffs to importers if the court declares that the sweeping duties Trump has imposed under the IEEPA are illegal.

Major corporations such as Costco COST.O, Revlon, Ray-Ban eyeglass maker EssilorLuxottica ESLX.PA, Bumble Bee Foods, Yokohama Tire 5101.T and Kawasaki Motors 7012.T have sued the U.S. government challenging IEEPA-based tariffs and seeking refunds on duties paid.

The tariffs invoked under the Emergency act fall into three categories: fentanyl-linked tariffs on China, Mexico and Canada; broad "reciprocal" tariffs aimed at shrinking trade deficits; and punitive levies against countries for non-trade political reasons.

Notably, pharmaceuticals, energy, agricultural commodities, services as well as aircraft and aerospace industries have been largely exempt from U.S. tariffs, protected due to their critical nature, global supply chains and potential impact on public health and international commerce.

Meanwhile, the EU and countries such as the UK, Japan, South Korea, Vietnam and Switzerland have struck tariff-reduction deals with the U.S. in exchange for market access and investment commitments.

Here are some countries and industries exposed to the IEEPA-based tariffs:

(Reporting by Pooja Menon and Puyaan Singh in Bengaluru; Editing by Alan Barona)

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Adds new items, updates futures

Jan 6 - Britain's FTSE 100 .FTSE index is seen opening higher on Tuesday, with futures FFIc1 up 0.3%.

* NEXT: The fashion retailer NXT.L reported a better-than-expected increase in full-price sales for the nine weeks to December 27 and edged up its annual profit guidance for the fifth time over the last year.

* SAGA: Investment firm Kelso Group KLSO.L has bought 400,000 shares in Saga SAGA.L and submitted proposals to its board aimed at boosting value.

* HGCAPITAL: HgCapital HGT.L is in advanced talks to acquire financial software maker OneStream OS.O, Bloomberg News reported.

* CAR REGISTRATIONS: Britain's car registrations grew in 2025, according to separate data. Meanwhile, Tesla's UK car sales dropped in December, contrasting a near five-fold jump for BYD.

* JLR: Third-quarter wholesale and retail volumes at the carmaker declined, hurt by production stoppages following one of Britain's most disruptive and high-profile cyber-attacks.

* FOOD AND SHOP PRICES: British store chains raised their prices more quickly last month and they might struggle to avoid further increases in 2026, the British Retail Consortium said.

* BUSINESS SENTIMENT: British company executives became a little more optimistic following the budget and grew more willing to increase investment, although the mood overall stayed muted, a survey showed.

* OIL: Oil prices fell on expectations of ample global supply amid weak demand, and as the market weighed the prospect of higher Venezuelan crude output following the U.S. capture of President Nicolas Maduro.

* METALS: Copper set an all-time high as supply concerns following fresh mine disruptions continued to support the rally.

* GOLD: Gold hit a one-week high as dovish comments from Federal Reserve officials boosted bets on interest rate cuts and Venezuela tensions bolstered safe-haven demand.

* For more on the factors affecting European stocks, please click on: LIVE/

TODAY'S UK PAPERS
> Financial Times PRESS/FT
> Other business headlines PRESS/GB

(Compiled by Neeshita Beura in Bengaluru)

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

• TATA MOTORS - JLR WHOLESALES IN Q3 FY26 WERE 59, 200 UNITS, DOWN 43.3% VERSUS. Q3 FY25

• TATA MOTORS - JLR RETAIL SALES IN Q3 FY26 WERE 79,600 UNITS , DOWN 25.1 % VERSUS. Q 3 FY2 5

• TATA MOTORS - JLR VOLUMES IN QUARTER INITIALLY IMPACTED BY PRODUCTION STOPPAGES FOLLOWING CYBER INCIDENT, TIME REQUIRED TO DISTRIBUTE VEHICLES GLOBALLY

Source text: ID:nBSE8LkNJx

Further company coverage: TAMO.NS

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Adds executive's comment in paragraphs 4,5; Hyundai India's sales figures in paragraph 11

Jan 1 (Reuters) - India's leading carmakers reported a strong rise in December sales to dealers on Thursday, with tax cuts from earlier in the year fuelling demand into the final month of 2025.

In September, India cut goods and services tax on small cars to 18% from 28% and on sports utility vehicles with large engine capacities to 40% from about 50%, in a bid to spur consumer spending and bolster growth amid steep U.S. tariffs.

This benefitted market leader Maruti Suzuki's MRTI.NS small car portfolio, its biggest segment, with sales rising 50% to 92,929 units, the highest since January 2025.

Maruti's total sales to domestic dealers jumped 37% to a record 178,646 units.

The company, India's top carmaker by sales, has an order backlog of one and a half months for its most affordable models, Partho Banerjee, senior executive officer for marketing and sales told reporters.

The company would soon "take a call" on whether it wants to revise prices of small cars, Banerjee said.

Peer Tata Motors Passenger Vehicles TAMO.NS reported a 13% rise in domestic sales, with models such as the Nexon and Punch utility vehicles and the Tiago small car driving growth.

Tata expects sales growth to pick up in coming months as deliveries of newly launched models, like the Sierra SUV, commence.

Earlier in the day, Mahindra & Mahindra MAHM.NS - which has a car portfolio comprised entirely of SUVs - said its monthly sales grew 23% in December.

Its sales growth of 18% so far in fiscal year 2026 is among the fastest in the Indian car market, and has helped the Scorpio manufacturer leapfrog Hyundai India HYUN.NS and Tata to the no. 2 spot in the current financial year.

Hyundai's monthly sales, on the other hand, grew only 0.5% in December.

(Reporting by Meenakshi Maidas and Nandan Mandayam in Bengaluru; Editing by Janane Venkatraman and Mrigank Dhaniwala)

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Recasts with more details, comment from paragraph 2 onwards

By Aditi Shah

Gurugram, INDIA, Nov 26 (Reuters) - Tesla's TSLA.O low running costs, including maintenance and fuel, can help Indian buyers to recoup about one-third of the Model Y's $67,000 price tag over four to five years, the company's India head said on Wednesday.

Tesla entered India in July with its imported Model Y, priced at a significant markup to its other major markets because of India's 100% import tariff.

Tesla is targeting a niche electric vehicle market in India that accounts for about 5% of overall sales in the world's third-largest car market. Analysts estimate that the majority of cars sold in India are priced below $22,000.

Since starting deliveries in September, Tesla has sold just over 100 Model Y's in India, based on Indian government registration data.

Tesla's India General Manager Sharad Agarwal said if Indian customers considered the low cost of maintaining a Tesla and electricity versus petrol prices, they could save around $22,000 over four to five years.

"Tesla does not provide a maintenance schedule because most of the service is done remotely through software updates which reduces the cost of ownership. And the cost of home charging is one tenth of petrol prices," he told reporters in Gurugram, where the company on Wednesday opened its biggest sales and service centre in the country.

Agarwal, who joined Tesla earlier in November, was previously the head of luxury carmaker Lamborghini in India.

In India, Tesla competes with homegrown rivals like Mahindra & Mahindra MAHM.NS and Tata Motors TAMO.NS and global players like SAIC Motor's 600104.SS India unit and Vietnamese EV maker VinFast Auto VFS.O.

The company is also gradually rolling out its supercharger network in India starting with Mumbai, Delhi and Gurugram.

(Reporting by Aditi Shah in Gurugram; Writing by Abinaya Vijayaraghavan; Editing by Himani Sarkar and Jane Merriman)

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Corrects to show deal is with Mitsubishi Fuso Truck and Bus, not Mitsubishi Motors, in paragraph 3. Removes Reuters Instrument Code of Mitsubishi Motors

By Stefanno Sulaiman

JAKARTA, Nov 20 (Reuters) - Indonesia's state-led Agrinas Pangan Nusantara is in talks with top global automakers to procure 160,000 trucks and as many motorbikes to kick off of a $12 billion programme to build local cooperative markets across the country, the company's CEO Joao Mota told Reuters on Thursday.

The vehicles are a part of President Prabowo Subianto's plan, launched in July, to establish 80,000 cooperatives in a drive to stimulate local businesses.

The previously unreported purchase plan includes a soon-to-be-signed deal to buy 35,000 six-wheeler trucks from local partners of Japanese automakers Mitsubishi Fuso Truck and Bus and Isuzu 7202.T, Joao said in an interview at his office.

"Mitsubishi can provide up to 20,000 units, while Isuzu up to 15,000 (six-wheeler) units," Joao said, adding that 45,000 more trucks might be imported from potential suppliers such as India's Tata Motors TAMO.NS and China's Dongfeng Motor Group 0489.HK.

He said his firm is also in talks with Isuzu, Indian automakers Tata Motors and Mahindra for purchases of 80,000 4x4 vehicles.

(Reporting by Stefanno Sulaiman; Editing by David Stanway)

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Updates with impact and details of cyber attack

LONDON, Nov 14 (Reuters) - Jaguar Land Rover said on Friday its manufacturing operations had returned to normal after a cyberattack forced a six-week halt at its UK plants, disrupting supply chains and costing the carmaker hundreds of millions of pounds.

The British luxury carmaker, owned by India's Tata Motors TATM.NS, resumed production in October after a phased restart, following the shutdown of systems in early September to contain the incident.

Below are the key facts about the incident and its impacts:

• Britain's economy barely expanded in the third quarter, held back in part by the cyberattack at JLR

• JLR has three factories in Britain, which together produce about 1,000 cars per day

• No evidence of customer data theft; some internal data affected

• JLR reports Q2 cyberattack-related costs of 196 million pounds ($263.05 million)

• Disruption hit JLR's sales in Q2, with wholesales down 24% year-on-year and retail sales falling 17%

• The company introduced supplier financing measures to ease cashflow pressures during the stoppage

($1 = 0.7451 pounds)

(Reporting by Sam Tabahriti; Editing by Kate Holton and Susan Fenton)

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Nov 13 (Reuters) - India's Tata Motors TATM.NS, the country's top commercial vehicles maker, reported a quarterly loss on Thursday, as it took a one-time impairment charge related to an investment in one of its units.

The maker of Ace mini-truck reported a loss of 1.02 billion rupees ($11.6 million) for the quarter ended September 30, compared with a profit of 6.43 billion rupees a year ago.

The company split from the passenger vehicles business in October, with both businesses now operating independently under the Tata Motors group.

($1 = 87.8950 Indian rupees)

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

(([email protected]; 8800437922;))

Oct 27 (Reuters) - Indian automakers are likely to see double-digit profit growth in the September quarter, according to brokerages, driven mostly by demand for two-wheelers and tractors, with improvement in the passenger vehicle segment set to reflect in December.

Auto companies' sales volumes and profitability have taken a hit, with firms posting single-digit profit growth in the previous five quarters, due to consumption slowdown, a global chip shortage and uncertainties surrounding U.S. tariff policies.

However, tax and interest rate cuts are seen boosting demand further, with the recovery expected to fully show in the December quarter, according to Hitesh Thakurani and Shubhangi Kejriwal of HDFC Securities.

The government's September tax relief on goods from soaps to small cars helped lift retail sales in the final weeks of the month.

IN THE FAST LANE

Indian automakers are expected to post 10–17% revenue growth and about 15% profit growth year-on-year in the September quarter, led by gains in two-wheelers and tractors, according to HDFC Securities.

Top two-wheeler makers Bajaj Auto BAJA.NS and TVS Motor TVSM.NS are set to benefit from stronger exports, favourable forex rates and a 12% fall in shipping costs, the brokerage said. TVS will report results on Tuesday and Bajaj Auto on November 7.

Tractor sales have also aided the recovery, supported by a normal monsoon, lower borrowing costs and tax cuts, according to Motilal Oswal.

Analysts at Nomura, Kapil Singh and Siddhartha Bera, said tractor volumes were likely to beat expectations.

SHORT-LIVED GLOOM

Growth in the passenger vehicles segment is expected to remain soft, according to Nomura, due to supply shortages, with sales set to dip 1.5% year-on-year in the quarter.

Market leader Maruti Suzuki MRTI.NS is likely to face short-term margin pressure from higher launch costs and customer discounts, but exports, led by its E-Vitara line, are emerging as a key growth engine, according to brokerages.

Tata Motors TAMO.NS is expected to lag due to cyberattack-led production shutdowns at Jaguar Land Rover but several brokerages said growth is set to pick up due to tax cuts, festive demand and exports.

Maruti will report results on Friday, followed by Mahindra & Mahindra MAHM.NS on November 4. Tata Motors is yet to announce a date.

(Reporting by Meenakshi Maidas and Bharath Rajeswaran in Bengaluru; Editing by Janane Venkatraman)

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Rewrites with details from investor call

By Kashish Tandon and Manvi Pant

Oct 15 (Reuters) - Hyundai Motor 005380.KS will invest $5 billion to expand its manufacturing and research operations in India, the South Korean automaker said on Wednesday, putting the world's third-largest car market at the heart of its growth strategy.

The money will help to increase Hyundai India's HYUN.NS annual production by about a third to 1.1 million vehicles by 2030, introduce 26 cars including its first hybrid vehicle tailored for India, and launch its luxury car brand Genesis in the country, Hyundai Motor CEO Jose Munoz told reporters.

The group expects the investment to generate $11 billion of revenue in India by 2030, making it Hyundai's second-largest market behind the U.S., Munoz said during the first investor day for its Indian unit.

BATTLE TO RECAPTURE MARKET SHARE

"India is a strategic priority in Hyundai's global growth vision. India isn't just important to Hyundai's global strategy. India is Hyundai's global strategy," Munoz said during the virtual presentation.

Hyundai India's shares rose nearly 3% after the news.

During nearly three decades in India, Hyundai had invested a total of $5 billion in the country.

The new outlay comes as the group is under pressure in its major U.S. market from President Donald Trump's tariffs, while also facing scrutiny over worker deaths and labour practices at its factory in Georgia.

Hyundai, which entered India in 1996, was until recently the country's second-largest carmaker, after Maruti Suzuki MRTI.NS, with bestsellers such as the Creta and Venue SUVs.

But its market share has slipped in recent months to below 14% from a peak of about 18% as it faces increased competition from Indian rivals such as Mahindra & Mahindra MAHM.NS, which has stepped into the second spot so far this fiscal year. By pumping fresh money into the market, Hyundai is targeting more than 15% share of the domestic market.

The Genesis luxury brand will debut in 2027, starting small but scaling “significantly” by 2032, Munoz said. The company expects the brand to enhance profitability and attract premium customers.

India will also become Hyundai's global export hub, with 30% of local output earmarked for overseas markets by 2030.

Hyundai India is planning dividend payouts of 20% to 40% of earnings, comparable to Maruti's 28.16% payout ratio in fiscal 2025 and Mahindra's 22%.

On Tuesday, Hyundai Motor India named insider Tarun Garg as the first Indian chief executive of the company, succeeding Unsoo Kim.

(Reporting by Kashish Tandon and Manvi Pant. Editing by Louise Heavens and Mark Potter)

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

By Shritama Bose

KOLKATA, Oct 13 (Reuters Breakingviews) - A power struggle at one of its largest business houses is the last thing India needs as it grapples with punitive U.S. tariffs. The government has intervened unusually quickly in a boardroom battle at the Tata group; India's finance minister, Nirmala Sitharaman, met last week with the $300 billion conglomerate's unlisted holding company and the charitable trusts that are its 66% owners and urged them to resolve their internal disputes. It confirms the systemic risks posed by India's family-led businesses.

One year on from the death of the group's patriarch, Ratan Tata, the conglomerate is battling multiple operational crises: the country's top manufacturer and employer is reeling from the deadly crash of a plane at Air India – a carrier it acquired from the government in 2022; a cyberattack has crippled production at Tata Motors' TAMO.NS luxury marque Jaguar Land Rover; and growth is weak at its IT software services giant, Tata Consultancy Services TCS.NS.

Yet the board of Tata's main holding company, led by Natarajan Chandrasekaran, is at only three-fifths of its March 2024 strength after a tussle between trustees at the charitable trusts resulted in the ousting of a director of Tata Sons in September. Noel Tata, who succeeded his half-brother as the chair of Tata Trusts, is struggling to stamp his authority on the group, and his position is complicated by his marriage to the sister of former Tata Sons chair Cyrus Mistry, whose family wants to exit Tata Sons; their 18% stake might be worth up to $38 billion.

India is no stranger to drama at its family businesses, but the Tatas, like Mukesh Ambani's Reliance Industries RELI.NS and the Adani group, are increasingly embedded in New Delhi's strategic planning. Tata group is Apple's AAPL.O domestic partner, leads the charge in India's chipmaking ambitions and produces defence gear through joint ventures with Lockheed Martin LMT.N and Boeing BA.N. The boom in software services over the past two decades means TCS alone has a headcount of over 593,000.

New Delhi needs its leading businesses putting their best foot forward to offset the impact of Trump's trade war. But on top of the Tata woes, the $160 billion Adani group has slowed capital expenditure and is more reliant on Indian banks after U.S. authorities charged its founder Gautam Adani with fraud, allegations the group denies.

The government's intervention at Tata group may accelerate an exit for the Mistry family. If nothing else, it shows India recognises the dangers of depending on a chosen few.

Follow Shritama Bose on Linkedin and X.

CONTEXT NEWS

Two senior Indian ministers met top executives from the Tata group and urged them to resolve internal boardroom disputes, Reuters reported on October 8, a day after the meeting took place, citing unnamed sources.

Finance Minister Nirmala Sitharaman was one of the ministers present at the meeting in New Delhi, which Tata Sons Chair N. Chandrasekaran and Tata Trusts head Noel Tata attended, the report added.

(Editing by Una Galani; Production by Ujjaini Dutta)

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

Oct 10 (Reuters) - The following are the top stories on the business pages of British newspapers. Reuters has not verified these stories and does not vouch for their accuracy.

The Times

The fallout from the motor finance scandal is likely to cost Lloyds Banking Group LLOY.L and Close Brothers CBRO.L materially more than they had already set aside, the lenders warned.

More than 100 companies have been hit by hackers targeting Oracle's ORCL.N suite of business products, Google's GOOGL.O Threat Intelligence Group has revealed.

The Guardian

Rishi Sunak has been appointed as a senior adviser by the US technology companies Microsoft MSFT.O and Anthropic.

The chances of the US stock market crashing is far greater than many financiers believe, JPMorgan Chase JPM.N CEO Jamie Dimon said.

The Telegraph

Troubled wind farm operator Ørsted ORSTED.CO has put hundreds of UK jobs at risk as part of a sweeping overhaul to cut costs.

Classic BBC shows are set to appear on Channel 4's streaming platform following a landmark deal between the two broadcasters.

Sky News

Messaging platform Discord has said the official ID photos of around 70,000 users have been stolen by hackers.

Palatine, which has owned The Alchemist since 2015, is working with advisers on an auction of the company.

The Independent

Jaguar Land Rover TAMO.NS has begun restarting Range Rover production lines in Solihull, aiming for all its manufacturing sites to be fully operational by the end of next week.

(Compiled by Bengaluru newsroom)

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