Tata MotorsPassenger

July 6 - Ashok Leyland Ltd ASOK.NS:

• INDIA AUTODEALERS BODY FADA: JUNE OVERALL AUTO RETAIL SALES ROSE 21.83% Y/Y

• INDIA’S FADA: JUNE TWO-WHEELERS RETAIL SALES ROSE 21.22% Y/Y

• INDIA’S FADA: JUNE PASSENGER VEHICLE RETAIL SALES ROSE 28.63% Y/Y

• INDIA’S FADA: JUNE COMMERCIAL VEHICLE RETAIL SALES ROSE 16.88% Y/Y

Source text: [ID:]

Further company coverage: ASOK.NS

Updates with details throughout

July 2 (Reuters) - Jaguar Land Rover retail sales fell 15.3% year-on-year to 80,000 units in the first quarter of fiscal year 2027 as it grapples with supply constraints and softening demand, parent India's Tata Motors Passenger Vehicles TAMO.NS said on Thursday.

Here are some more details:

• The British luxury carmaker sold 79,300 units wholesale in the first quarter, a 9.2% decline from a year earlier.

  
  

• A fire at a key component supplier temporarily squeezed supply during the reported quarter, the company said.

  
  

• Market disruptions linked to the Middle East conflict and the deliberate wind-down of older Jaguar models ahead of the Type 01 launch also weighed on volumes, it said.

  
  

• JLR's bestselling trio, its Range Rover, Range Rover Sport and Defender models, accounted for 80.8% of total wholesale volumes in the quarter, up from 77.2% a year earlier.

  
  

• The company said at its investor day last month that it would prioritise growth in the U.S. as it seeks to counter weakness ‌in its traditional stronghold China.

  
  

• China was a major ​source of growth for ⁠JLR, but a combination of economic weakness and a cutthroat local industry has made it much harder for international companies to compete there.

  
  

• The company said it plans to cut $2.3 ⁠billion in ​costs over two years.
  

• Analysts at Ambit Capital flagged elevated marketing costs and a fragile recovery in China as key risks, but said JLR's turnaround from cash burn to operating break-even marked an encouraging step forward.

(Reporting by Abhinav Parmar in Bengaluru; Editing by Pooja Desai)

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Tata Motors Passenger Vehicles Ltd informed the stock exchanges that it will hold a virtual group meeting on July 3, 2026, at 5:00 p.m. IST with a group of analysts and institutional investors. The list of attendees includes Helios Capital Management Pte. Ltd., along with several other asset managers and insurance companies. The company noted that the schedule is subject to change.

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LONDON, June 30 (Reuters) - By Nick Carey, European Autos Correspondent

Greetings from London!

Automakers across much of the globe have been unprepared for the rush of affordable cars from Chinese rivals, whose market share has grown far faster than expected.

Take Britain, where Chinese carmakers’ share has doubled this year to around 15%. Or the European Union, where BYD, Chery, SAIC and Leapmotor have almost doubled their share to 6.4%.

That’s before you get to eye-popping gains across small emerging markets that collectively mean more pain for traditional automakers. In Israel, Chinese automakers’ market share so far this year has passed 40%, up from 32% in 2025.

Chery’s Jaecoo, Omoda and Chery brands are Israel’s top sellers, cumulatively selling almost as many cars as Toyota, last year’s No.1 brand, did all year in 2025.

Traditional carmakers are under immense pressure.

And the cracks are beginning to show, as we saw in just the last few days with news that Volkswagen CEO Oliver Blume wants to push for historic job and factory cuts in Germany to bring down costs and fend off Chinese competition.

Which brings us to today’s Auto File…

China’s practice run for U.S. car sales

Polestar shut out of U.S. market

Volkswagen’s job cut gambit

China’s Canadian preamble

Part of Prime Minister Mark Carney’s push to reduce Canada’s dependence on the U.S. economy included a trade deal allowing Chinese automakers to import up to 49,000 EVs a year, rising to 70,000 over the next five.

Several Chinese automakers are rushing to set up sales in Canada, including Chery, BYD, Lotus and state-owned Changan, but industry experts say Canada is not the prize. The massive U.S. market next door is.

You can read all about it here.

Splitting 49,000 EVs between Tesla and Polestar leaves China’s carmakers with not very much. Going back to the example of Israel, Chinese carmakers sold almost 95,000 cars there in 2025 in a market less than a sixth the size of Canada’s.

Yes, the U.S. car market is currently closed to China and lawmakers are pushing to make it ever more so.

But few experts believe it can stay shut forever. And the Chinese take a long view of business that western rivals do not – for instance, China’s government has pushed dominance of the EV supply chain for a couple of decades now.

Chinese automakers make no secret of their desire to sell in the world’s second-largest and most lucrative car market.

And if you want practice for that, there’s no better place to start than Canada.

Canadians buy similar cars, using the same financing tools in dealers that are often part of cross-border groups.

Moving from Canada to the U.S. market would be like “flipping a switch”, one expert said.

Recommended reading:

Ditching copper for aluminium

Korea’s massive chip bet

More summertime blues for Fiat 500 factory

Polestar gets the boot

Washington’s crackdown on Chinese EVs has cranked up a notch as Washington told Polestar it could no longer sell its electric cars in the U.S. market.

You can read all about it here.

Polestar’s cars are no longer made in China but contain Chinese software and hardware and it is majority-owned by China’s Geely. Sister company Volvo is 79% owned by Geely founder Li Shufu but has authorization to keep selling to U.S. buyers.

The ban has left U.S. owners of Polestar cars worried about who will service their vehicles and dealers wondering why Volvo got an authorization but Polestar did not.

Blume goes big

Volkswagen has had a rough ride the last few years. The world’s No. 2 automaker lost its top spot in China in 2024 to BYD and was knocked into third place by Geely in 2025.

With Chinese automakers making inroads across most of the globe, including on Volkswagen’s home turf, CEO Oliver Blume is betting on massive job cuts and plant closures in Germany to bring down costs.

You can read about it here.

But Blume’s plan to slash 100,000 jobs and shutter four factories faces major hurdles.

First, there is the Volkswagen Law, which limits its ability to close plants, though spinning off some of those entities could help the automaker circumvent the law.

The problem is that would set up a showdown with Germany’s powerful unions and Lower Saxony, a major shareholder.

Volkswagen’s management is billing this as vital to the company’s future.

But this will be the biggest fight of Blume’s career.

Chinese EV tech in India

India has gone to some length to keep Chinese EV makers out.

But as Reuters colleague Aditi Shah reports, that has not stopped cooperation flourishing between carmakers in both countries.

You can read more about it here.

Tata Motors will use Chinese firm Chery’s platform to make premium EVs in India.

The Tata-Chery deal shows that, despite its best efforts, India cannot keep China's EV industry out completely.

The world's most advanced EV industry is likely to continue to make inroads into India, a huge and still growing market.

That's bad ​news for Japanese automakers and others who are investing big in India, in part because they don't face major competition from Chinese rivals there now.

Fast Laps

Ferrari's first-ever EV model, which has triggered a flurry of criticism since its unveiling last month, needs to be "digested" before it can be ​understood, the company's Chief Product Development Officer Gianmaria Fulgenzi said.

Honda CEO Toshihiro Mibe secured support for his reappointment to the board at its annual meeting ​ after apologising to shareholders for the Japanese automaker's poor financial performance.

U.S. safety regulator the National Highway Traffic Safety Administration proposed ending a government requirement for manual brake pedals ​in self-driving vehicles, a move that would make it easier to deploy ‌such vehicles on the country’s roads.

Former Nissan Chairman Carlos Ghosn said calls by some shareholders for his return reflected deep anger over ​years of failed turnaround plans, accusing the automaker's leadership of squandering value and losing direction since his 2018 ouster.

Chinese self-driving ​technology firm Momenta Global launched its Hong Kong initial public offering, ‌seeking to raise up to HK$5.89 billion ($751 million), its prospectus shows.

Toyota’s global vehicle sales ​slipped for a fourth consecutive ‌month in May, as decreases in China and the Middle East weighed ​on overall results.

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(Editing by Alexander Smith)

By Aditi Shah

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

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

Here are some details:

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

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

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

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

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

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

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

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

(Reporting by Aditi Shah; Editing by Susan Fenton)

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June 25 (Reuters) -

• JAGUAR LAND ROVER NORTH AMERICA, LLC IS RECALLING 250,857 U.S. VEHICLES - NHTSA

• JAGUAR LAND ROVER NORTH AMERICA, LLC IS RECALLING SOME U.S. VEHICLES AS AN AIR BAG THAT DOES NOT DEPLOY AS INTENDED INCREASES THE RISK OF INJURY IN A CRASH.- NHTSA

Source text: https://tinyurl.com/y87pppkb

Further company coverage: TAMO.NS

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By Aditi Shah

NEW DELHI, June 24 (Reuters) - Chinese automakers may be shut out of India, but their electric-vehicle technology is starting to make inroads in the world's third-largest car market.

New Delhi has largely blocked Chinese companies from entering the market since 2020 and now Beijing is clamping down on the export of its tech know-how. Yet ties between the two countries' carmaking industry are only growing.

Tata Motors said earlier in June it will use Chery's carmaking platform to manufacture premium EVs in India. The deal doesn't involve an equity stake, and both companies stressed it is a supply arrangement without any transfer of technology know-how to Tata, highlighting the political sensitivities.

India ramped up scrutiny of Chinese businesses after a 2020 border clash between the two countries killed soldiers on both sides. While New Delhi and Beijing are working to improve ties, some friction remains.

"If India wants to expand its manufacturing sector and be a bigger part of the global supply chain, partnership with China is inevitable. If Chinese companies want to be global leaders, they cannot wish away India and its economic potential," said Santosh Pai, partner at law firm Dentons Link Legal.

For Tata, India's third-largest automaker, Chery's platform offers a quicker way to launch EVs. Tata plans to eventually shift from relying on imported kits from China to developing components locally - a move seen favourably by some Indian policymakers because it would boost Indian manufacturing.

"We are supportive of deals that lead to more local manufacturing or supply-chain shifts down the road. That is a good way to approach China," said a senior Indian government official.

For Chinese carmakers grappling with a slowdown at home and excess manufacturing capacity, such deals could be the answer to boosting revenue without violating Beijing's export control orders.

Tata TAMO.NS and Chery 9973.HK did not respond to requests for comment.

GROWING MARKET

The Tata-Chery deal shows that, despite its best efforts, India can't keep China's EV industry completely out.

The world's most advanced EV industry is likely to continue to make inroads into India, a huge and still growing market.

That's bad news for Japanese automakers and others who are investing big in India – in part because they don't face major competition from Chinese rivals there now.

Chinese EV makers understand the importance of gaining a foothold in India through such supply deals, said Gao Hua, a former director at China SAE and now an independent analyst.

"If Chinese firms don't participate, others from different countries will step in," Gao said.

Chinese partnerships are increasingly appearing in sectors long dominated by Japanese, Korean and European firms, and they are challenging the incumbents with technologies that many analysts say are cheaper and faster to deploy.

For instance, Indian component maker Uno Minda UNOI.NS has a joint venture with China's Inovance 301656.SZ to manufacture EV powertrains in India - a sector where Bosch BOSH.NS, Nidec 6594.T and Aptiv APTV.BN are already present.

BATTERY CO-OPERATION HALTED

Technology licensing deals between India and China started to gain traction in the aftermath of the 2020 investment restrictions.

But it wasn't all smooth sailing. In 2025, Beijing's export control curbs in retaliation to Trump's tariffs, forced Indian battery maker Amara Raja AMAR.NS to end its licensing deal with China's Gotion 002074.SZ for lithium-ion cell technology for EV batteries.

"All technical collaboration has stopped," Amara Raja's executive director Vikramadithya Gourineni told Reuters.

"The main things we were able to take away was understanding on factory and line layouts, technology roadmaps ... and connecting to the vendor base," Gourineni said.

Because the licensing deal was no longer possible, Amara Raja is instead ramping up investment in in-house R&D and talent, he said.

The company is now importing equipment, battery cells and other material from Chinese suppliers to meet its cell manufacturing ambitions, but it struggles to get enough visas for engineers to come from China for operational support.

CHERY'S OTHER INDIAN PARTNER

Last year, steel-to-cement billionaire Sajjan Jindal's maiden carmaking venture, JSW Motor, agreed to a partnership with Chery similar to Tata's.

Under the deal, JSW has secured rights to use and adapt multiple Chery platforms to build a range of hybrids and EVs for India, sources familiar with the plans told Reuters. This involves an upfront payment of about 20 billion rupees ($209 million) plus royalties, one of the people added.

JSW, which is investing $3 billion in the venture, is targeting sales of 300,000 vehicles by 2030, the sources said.

The initial vehicles will largely come as imported kits from Chery with JSW gradually building out an Indian supply chain and scaling up car production at its factory in western India, they added.

JSW Motor and Chery did not respond to requests for comment.

"This highlights the importance of nuanced approaches. Cutting ties is not always the best option," Gao said.

(Reporting by Aditi Shah in New Delhi and Zoey Zhang in Shanghai, additional reporting by Shivangi Acharya in New Delhi; editing by David Dolan and Stephen Coates)

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Tata Motors Passenger Vehicles Ltd laid out a five-year strategy targeting ₹1,40,000 crore in revenue by FY31, more than double the ₹58,500 crore it posted in FY26, with an EBITDA margin goal of 10%. The company plans to expand its product portfolio to 15 nameplates from the current nine, invest in capacity to reach 1.3 million units annually, and drive 5-6% cost reduction in internal combustion engine vehicles while deepening cost cuts in electric vehicles. Management also targeted a market share of 20% by FY31, up from around 14-15% currently, with electric vehicles expected to contribute 30% of its volumes. The strategy includes an accelerated network expansion to double sales outlets and triple service centres over five years.

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June 23 (Reuters) - India's Tata Motors Passenger Vehicles TAMO.NS said on Tuesday that it expects revenue to exceed 6 trillion rupees ($63.32 billion) by fiscal 2031, with an earnings before interest and tax (EBIT) margin of 10%.

($1 = 94.7525 Indian rupees)

(Reporting by Urvi Dugar in Bengaluru; Editing by Shreya Biswas)

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June 18 (Reuters) - The following are the top stories in the Financial Times. Reuters has not verified these stories and does not vouch for their accuracy.

Headlines

JLR to target US 'millionaires and billionaires' with hybrid and petrol cars

Diageo boss Dave Lewis orders executives to cut jobs as restructuring kicks off

Billionaire trader Alex Gerko loses tax appeal at UK Supreme Court

Rheinmetall to partner with US satellite group to boost German intelligence capabilities

Overview

The boss of Jaguar Land Rover TAMO.NS has said there is "no way" the British carmaker will phase out its petrol vehicles as it expands its hybrid offerings to capture the "biggest growth opportunity" in the US.

Diageo's DGE.L new chief Dave Lewis has instructed his top executives to cut headcount and other costs in their departments, as the turnaround veteran kicks off a significant restructuring of the troubled spirits group.

Billionaire Alex Gerko has lost a long-running legal battle over the tax treatment of profits made by individual traders with UK's Supreme Court ruling that traders should pay income tax on their share of trading profits, a point that Gerko had previously argued would result in "massive double taxation".

A top provider of commercial satellite imagery that was blocked by the US from providing some data services to Ukraine is set to bid with Rheinmetall RHMG.DE for contracts to build Germany's intelligence capabilities.

(Compiled by Bengaluru newsroom)

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-- Source link: https://tinyurl.com/fjv9exhd

-- Note: Reuters has not verified this story and does not vouch for its accuracy

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June 16 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• TATA MOTORS PASSENGER VEHICLES ON JLR: EXTERNAL ENVIRONMENT REMAINS BOTH CHALLENGING AND VOLATILE

• TATA MOTORS PASSENGER VEHICLES: WILL RAMP UP PRODUCTION TO MEET DEMAND

• TATA MOTORS PASSENGER VEHICLES: GEOPOLITICAL DEVELOPMENTS REMAIN KEY MONITORABLE TO MITIGATE POTENTIAL SUPPLY-SIDE, COMMODITY PRICE RISKS

• TATA MOTORS PASSENGER VEHICLES: EXPECT TO BUILD ON MOMENTUM OF H2, CONTINUE TO DELIVER PROFITABLE GROWTH IN FY27

• TATA MOTORS PASSENGER VEHICLES: WILL MITIGATE MARGIN HEADWINDS THROUGH STRUCTURAL COST REDUCTIONS

• TATA MOTORS PASSENGER VEHICLES- INTENDS TO INVEST 90 BILLION RUPEES AT CO'S MANUFACTURING FACILITY IN TAMIL NADU

• TATA MOTORS PASSENGER VEHICLES - LOOKING AHEAD, DOMESTIC DEMAND CONTINUES TO SUSTAIN, LED BY GROWTH IN SUVS, CNG AND EV

• TATA MOTORS PASSENGER VEHICLES - IN DOMESTIC PV, EV BUSINESS, CO ASPIRES TO ACHIEVE 18-20% MARKET SHARE, DELIVER DOUBLE-DIGIT EBITDA MARGINS

• TATA MOTORS PASSENGER VEHICLES - COMMITTED TO INTRODUCING 5 NEW EV MODELS BY FY30 AS PART OF LONG-TERM ELECTRIFICATION STRATEGY

• TATA MOTORS PASSENGER VEHICLES - WILL PRIORITISE DEVELOPMENT OF SOFTWARE DEFINED VEHICLES, INCLUDING AUTONOMOUS, CONNECTED

• TATA MOTORS PASSENGER VEHICLES - PLAN TO INVEST 330-350 BILLION RUPEES FOR PV AND EV BUSINESS BETWEEN FY26-FY30

• TATA MOTORS PASSENGER VEHICLES - PV, EV INVESTMENT TO BE FUNDED VIA INTERNAL CASH ACCRUALS, ADDITIONAL NEEDS TO BE MET VIA DEBT, GOVERNMENT INCENTIVES

Source text: [ID:]

Further company coverage: TAMO.NS

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June 15 (Reuters) -

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

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

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

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

Further company coverage: ASOK.NS

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June 12 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• TATA MOTORS PASSENGER VEHICLES - TO INCREASE PRICES OF CARS AND SUVS FROM JULY 1, 2026

• TATA MOTORS PASSENGER VEHICLES - TMPV TO INCREASE PRICES OF ICE AND EV VEHICLES BY UP TO 1.5% FROM JULY 1, 2026

• TATA MOTORS PV- PRICE REVISION IS BEING UNDERTAKEN TO PARTIALLY OFFSET IMPACT OF RISING INPUT COSTS AND SUSTAINED INFLATIONARY PRESSURES

• TATA MOTORS PASSENGER VEHICLES - EXTENT OF PRICE INCREASE WILL VARY ACROSS MODELS AND VARIANTS

Source text: ID:nNSE6729hK

Further company coverage: TAMO.NS

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

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

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

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

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

Source text: [ID:]

Further company coverage: ASOK.NS

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By Aditi Shah

NEW DELHI, June 3 (Reuters) - Tata Motors TAMO.NS plans to license an automaking platform from China's Chery 9973.HK, four people familiar with the matter told Reuters, as the Indian car company seeks to get its delayed premium EVs back on track.

While Chinese carmakers remain largely shut out of the world's third-largest auto market, their technology is quietly becoming hard to avoid, as local manufacturers lean on it to stay competitive in the global EV race.

Tata, India's biggest electric carmaker, will use Chery's platform to locally build EVs under its premium Avinya brand with plans for at least two cars, the first of which will be launched in 2027, three of the people said.

The strategy marks a pivot from Tata's original plan to use Jaguar Land Rover's electrified modular architecture (EMA) for Avinya models targeted for 2025. That roadmap collapsed last year when JLR shelved plans to build EMA-based EVs in India, forcing Tata into a reset, Reuters previously reported.

Chery's platform deal is expected to make up for the lost time, granting Tata access to advanced features and technology it would otherwise take longer and more capital to develop, the people said.

The first Avinya model on Chery's platform is due in 2027 and will be shipped from China as a kit and assembled in India, two of the people said, with efforts to source localised components already underway. A second EV is due for launch in 2029, with scope for two more vehicles beyond that, one of them said.

Tata said in a statement it will leverage the Freelander platform produced in a joint venture between Chery and JLR in China, with the cars being manufactured at its newly opened factory in Tamil Nadu in southern India.

"Avinya is being developed as a global premium brand ... to be built on multiple, scalable platforms and architectures while being anchored in Tata Motors' design, engineering and integration capabilities," the company said in an emailed statement to Reuters.

"Our collaboration with JLR and its partners will be an important pillar of our global premium EV journey as we expand the Avinya portfolio across segments and geographies," it added.

Chery told Reuters in a statement that its agreement with Tata builds on the success of its collaboration with JLR.

"Chery will act as a supplier to Tata Motors Passenger Vehicles. Each project operates under its own separate agreement with standard commercial terms," the Chinese carmaker said.

JLR has tapped Chery, a longtime partner, to develop and build electrified cars, including EVs and hybrids, under its resurrected Freelander brand. The cars will be based on the Chinese company's architecture and built at its factory in Changshu.

The deal with Chery is a "stop-gap arrangement" because without fresh products, Tata risks losing its EV lead, one of the people said, adding the company still intends to develop its own dedicated platform over time.

All of the people declined to be identified because they are not authorised to speak to the media.

INDIAN COMPANIES LEAN ON CHINESE TECH

Electric models make up 14% of Tata's total sales with a target to more than double that to 30% by 2030. But rivals Mahindra & Mahindra MAHM.NS and JSW MG Motor are closing in on its lead, exposing gaps in its EV line-up and raising the risk of further market share losses.

The deal talks reflect a broader shift underway in India's automotive industry. India's automakers are increasingly importing China's EV technology while avoiding deeper equity partnerships due to political sensitivities.

Since 2020, New Delhi has placed strict curbs on investment from neighbouring nations mainly targeted at China, effectively freezing large-scale participation in the auto industry. While restrictions have eased slightly in sectors like electronics, carmakers still face high barriers.

JSW Motor, the independent carmaking venture of steel-to-cement billionaire Sajjan Jindal, also has a similar platform licensing deal with Chery.

Indian car companies have increased their spending on research and development of new technologies and powertrains in recent years, but like many global peers they are unable to match China's speed, cost and tech prowess in EVs.

Chery, China's largest car exporter, has rapidly expanded its global footprint.

Drawing on inspiration from Toyota and Tesla, the Chinese automaker has pursued joint manufacturing arrangements with foreign companies across key markets, including Europe, Southeast Asia and Latin America.

(Reporting by Aditi Shah and Zhang Yan; Editing by David Dolan and Shri Navaratnam)

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

By Shritama Bose

MUMBAI, June 2 (Reuters Breakingviews) - Forcing an initial public offering of the Tata conglomerate's holding company would be a clumsy application of rules designed to reduce shadow banking risks. It could also sting the Indian government as it would curb the financial flexibility of the $270 billion cars-to-chips group when New Delhi most needs agility from its corporate behemoths.

A listing risk has hung over Tata Sons since 2021, when the Reserve Bank of India refreshed its rulebook, following the collapse of Infrastructure Leasing & Financial Services, a major non-bank lender. The RBI enhanced capital requirements for large shadow banks and mandated listings to increase transparency. Tata Sons is registered as a core investment company, which the RBI counts as a category of shadow banks.

Tata Sons has since taken extensive steps to address potential risks. Last year it completed a $13 billion IPO of Tata Capital TATC.NS, a small non-bank financial company; cut its quasi-lending exposure by reducing the value of so-called “letters of comfort” issued to subsidiaries’ creditors by 60% in the two years to March 31, 2025; and moved from a net debt to net cash position as of March 2024. Yet the RBI’s latest update implies Tata Sons will still need to list after July 1.

The latest pushback comes from Noel Tata, chair of Tata Trusts which owns 66% of Tata Sons. He's written to the RBI saying a listing would shift the holding company’s priorities from long-term institution-building to catering to shorter-term market expectations, Moneycontrol reported on June 1, citing people familiar with the matter.

That's a real risk; Tata's big bet on building an indigenous chip industry may not have materialised if Tata Sons was a public company. What's more, a Tata Sons IPO would not significantly increase transparency. Most of its large investments already trade as public companies, including $85 billion Tata Consultancy Services TCS.NS, $38 billion Titan TITN.NS and $15 billion Tata Motors TAMO.NS.

But a forced IPO would crystallise a huge conglomerate discount. For investors, owning a holding company is usually less attractive than buying listed subsidiaries that provide direct exposure to a desired industry. In Asia, these discounts can be as high as 50%: Tata Sons held assets worth an estimated 1.75 trillion rupees ($18.42 billion) as of March 2025.

To be sure, Tata Sons has its problems. Minority shareholder Shapoorji Pallonji Group wants liquidity for its 18% stake and skirmishes among Tata Sons board members have intensified since the death of Ratan Tata, the group's chair emeritus. The RBI diktat is making matters worse.

New Delhi may also stand to lose from broadening out Tata Sons' shareholder base. The group's 2022 purchase of Air India, the bleeding national carrier that has lurched from crisis to crisis, would have been hard to justify to external investors. On balance, an IPO would enforce rules to the letter but achieve little else.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Tata Trusts Chair Noel Tata has written to the Reserve Bank of India opposing any potential listing of Tata Sons, news website Moneycontrol reported on June 1, citing unnamed people directly aware of the matter. He argued that going public could alter the long-term character of the Tata group’s holding company and disrupt the philanthropic objectives of the Trusts, the report added.

The RBI on April 29 expanded the definition of 'public funds' in its regulations for non-banking financial companies. The updated rules state that investment companies that have access to public funds indirectly through group entities or associates will not be exempted from the requirement to go public if they hold assets worth at least 1 trillion rupees ($10.5 billion).

The rules will come into effect on July 1.

(Editing by Una Galani; Production by Ujjaini Dutta)

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May 28 (Reuters) - India's Ashok Leyland ASOK.NS reported its highest ever quarterly profit on Thursday, helped by strong demand for commercial vehicles.

• The Hinduja Group flagship reported standalone profit of 14.05 billion rupees ($146.8 million) in the three months ended March 31, up 13% from 12.46 billion rupees a year ago.

• Revenue from operations jumped about 19% to a record 141.6 billion rupees in the fourth quarter

• Auto sector demand, including for commercial vehicles, continued stayed strong on momentum from last year's tax cuts

• Analysts, however, warned of margin pressures due to increased input costs amid the ongoing U.S.-Iran war.

• Ashok Leyland's input costs soared 29%, driving up expenses by 19%

• "Our CV and export volumes were at an all-time high... the company delivered significant growth in power solutions, aftermarket and electric mobility businesses," Chairman Dheeraj Hinduja said.

• Earlier this month, rival Tata Motors TATM.NS flagged near-term cost pressures due to the ongoing war even as it reported a near 70% jump in fourth-quarter profit.

($1 = 95.6863 Indian rupees)

(Reporting by Devika Nair in Bengaluru; Editing by Joyjeet Das)

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By Aditi Shah

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

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

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

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

Which brings us to today’s Auto File…

Stellantis’ new era of alliances under Antonio Filosa

Volkswagen tries to calm nerves over China

China tightens its grip on rare earths, again

Stellantis embraces partnerships in €60 billion reset

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

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

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

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

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

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

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

Recommended reading:

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

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

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

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

Volkswagen walks a tightrope on China and overcapacity

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

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

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

But the economic pressure is only growing.

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

China halts rare earth exports in tiff with Japan

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

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

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

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

Fast laps

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

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

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

(Editing by Emelia Sithole-Matarise)

May 21 (Reuters) - Stellantis executive tells investors at the automaker's capital market day:

• STELLANTIS EXECUTIVE: TATA MOTORS TO PROVIDE PLATFORM TO DEVELOP A NEW JEEP CAR TO BE PRODUCED IN INDIA BY LOCAL JV AND SOLD GLOBALLY

Further company coverage: STLAM.MI

(Reporting by Milan Newsroom)

May 20 (Reuters) - Stellantis STLAM.MI and Britain's Jaguar Land Rover will consider jointly developing vehicles in the U.S., the French-Italian automaker said on Wednesday.

The two companies signed a preliminary agreement to explore collaboration opportunities in product and technology development.

They did not disclose any further details.

The potential collaboration would be the latest in a string of partnerships between global automakers as they look to cut production and R&D expenses and fill underutilized capacity.

Earlier in the day, Stellantis said it was planning a joint venture in Europe with China's Dongfeng 600006.SS that would explore production of electric vehicles.

For JLR, owned by India's Tata Motors Passenger Vehicles TAMO.NS, the U.S. collaboration with Stellantis as its financials have taken a large hit from U.S. President Donald Trump's tariffs.

The U.S. is a key growth market for JLR, where its Defender and Range Rover luxury SUVs are popular. However, it has no manufacturing presence in the country.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Sahal Muhammed)

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

May 18 (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

- British finance minister Rachel Reeves plans to announce next week that she will scrap a planned rise in tax on motor fuel that is due to take place in September.

- EY UK has paid more than 100 million pounds ($133.16 million) to the administrators of NMC Health Plc NMMCF.PK to settle claims it was negligent in its audits of the failed firm.

The Guardian

- Jaguar Land Rover and General Motors GM.N are considering an expansion into UK defence via a 900 million pound military contract, as the automobile companies are among a group of firms vying to make thousands of trucks for the armed forces to replace an ageing fleet of Land Rovers that have been out of production since 2016.

- An Ebola outbreak in the Democratic Republic of Congo and Uganda has been declared a public health emergency of international concern by the World Health Organisation, after 80 suspected deaths.

The Telegraph

- Investors in Britain's largest water supplier, Thames Water have told the government that a temporary nationalisation of the embattled company would slow its turnaround.

Sky News

- Britain's government will set out more detailed proposals next week to relax bank regulations that had been designed to stop a repeat of the 2008 financial crisis.

- Blastr, the preferred bidder for Liberty Steel, met the Official Receiver late last week to discuss the possibility of taxpayers underwriting risks associated with the purchase of Speciality Steel UK.

The Independent

- Greater Manchester Mayor Andy Burnham is expected to tone down his call to reverse Brexit as he faces a crunch by-election that could see him return to parliament.

($1 = 0.7510 pounds)

(Compiled by Bengaluru newsroom)

(([email protected]))

Updates to add state charity commissioner's order

By Jayshree P Upadhyay and Gopika Gopakumar

MUMBAI, May 16 (Reuters) - India's Tata Sons, the umbrella organisation for 31 companies including TCS TCS.NS, Tata Motors TAMO.NS and Tata Steel TISC.NS, is facing pressure to go public, even as the charitable trusts controlling two-thirds of the conglomerate grapple with internal differences.

Until now, Tata Sons has remained unlisted. But pressure to list is mounting from internal stakeholders, including its second largest shareholder, the Shapoorji Pallonji (SP) Group. Rules from the Reserve Bank of India may also require it to list unless an exemption is secured.

WHAT IS THE STRUCTURE OF THE TATA GROUP?

The 108-year-old salt-to-steel conglomerate is uniquely structured, where a combine of philanthropic organisations broadly known as the Tata Trusts holds 66% in Tata Sons. Debt-ridden construction and infrastructure conglomerate SP Group holds 18.4% of the company.

The Tata Trusts comprise 13 entities, seven of which directly hold shares in Tata Sons. The board of Tata Trusts consists of six trustees drawn from these entities.

Noel Tata, scion of the founding family, is the current chairman of Tata Trusts and is a director on the Tata Sons board.

WHO WANTS TATA SONS TO LIST?

Pressure for listing is coming from multiple quarters.

At least two of the six Tata trustees - Venu Srinivasan and Vijay Singh - have supported the listing of Tata Sons in media interviews, saying expansion, especially into new areas like semiconductors, will require large capital that cannot be generated internally.

The SP Group wants a listing so it can monetise or exit its holding, which is not freely transferable in the current structure. But the SP group is not represented among the trustees.

The key pressure is regulatory, stemming from RBI rules requiring large non-bank lenders above certain asset thresholds or with public funds to list.

WHAT ARE THE RBI RULES AND WHY DO THEY APPLY TO TATA SONS?

As the holding company of a number of businesses, Tata Sons is classified as a core investment company, which falls under the RBI's regulations.

Revised rules issued last month state that companies with assets exceeding 1 trillion rupees ($10.45 billion), or those with direct or indirect access to public funds, must list.

As of March 2025, Tata Sons' standalone assets stood at 1.75 trillion rupees.

The RBI retains discretion to determine which firms can be exempt from listing.

HAS RBI CLARIFIED ITS STANCE?

While analysts and legal experts say the revised rules make it harder for Tata Sons to remain private, the RBI has not publicly stated its position.

A request by Tata Sons for exemption is still under review. The company has reduced borrowings in an effort to avoid listing, but it remains unclear if that will suffice.

WHO IS OPPOSING THE LISTING?

Noel Tata has not made public comments, but has privately opposed converting Tata Sons into a listed entity. Media reports say he and other trustees unanimously opposed listing last year and asked the Tata Sons' chairman to engage with the RBI.

THE ISSUES AT TATA TRUSTS

India's Maharashtra state charity commissioner has ordered Tata Trusts to defer its board meeting after complaints triggered an inquiry into the trusts' governance. One of the complainants was Venu Srinivasan, a senior trustee at Tata Trusts.

On May 16, the boards of two key trusts — Sir Dorabji Tata Trust and Sir Ratan Tata Trust — which together hold over 50% of Tata Sons, were due to meet.

A central agenda item was to be the discussion of the RBI rules and their implications for a potential listing.

Additional items included increasing the Tata Trusts’ representation on the Tata Sons board, the reappointment of its chairman, and a review of Tata Sons’ performance.

The board meeting, the first since the RBI's rules were revised, was being keenly watched by the street for differences within the trustees on the listing of Tata Sons and how it may play out.

Under the Trusts' governance norms, resolutions are passed if a majority of trustees vote in favour. Therefore, if a majority of trustees support the proposal to list Tata Sons, the company would have to initiate the listing process.

(Reporting by Jayshree P Upadhyay and Gopika Gopakumar in Mumbai; Editing by Ira Dugal, Raju Gopalakrishnan and Muralikumar Anantharaman)

(([email protected]; 9920092491; Reuters Messaging: Twitter: @jaysh88))

By Jayshree P Upadhyay and Gopika Gopakumar

MUMBAI, May 15 (Reuters) - Tata Sons, the holding company of 31 group companies including TCS TCS.NS, Tata Motors TAMO.NS and Tata Steel TISC.NS, is facing pressure to go public - a discussion likely to come up at a board meeting on Saturday of two trusts that are major shareholders.

Until now, Tata Sons has remained unlisted. But there is now pressure to list from internal stakeholders, including its second largest shareholder, the Shapoorji Paloonji (SP) Group. Rules from the Reserve Bank of India may also require them to list unless they can secure an exemption.

WHAT IS THE STRUCTURE OF THE TATA GROUP?

The 108-year old salt-to-steel conglomerate is uniquely structured, where a combine of philanthropic organisations broadly known as the Tata Trusts hold 66% in Tata Sons. Debt ridden-construction and infrastructure conglomerate SP Group holds 18.4% of the company.

The Tata Trusts comprise 13 entities, seven of which directly hold shares in Tata Sons. The board of Tata Trusts consists of six trustees drawn from these entities.

Noel Tata, scion of the founding family, is the current chairman of Tata Trusts and is a director on the Tata Sons board.

WHO WANTS TATA SONS TO LIST?

Pressure for listing is coming from multiple quarters.

At least two of the six Tata trustees - Venu Srinivasan and Vijay Singh - have supported the listing of Tata Sons in media interviews, saying expansion, especially into new areas like semiconductors, will require large capital that cannot be generated internally.

The SP Group wants a listing so it can monetise or exit its holding, which is not freely transferable in the current structure. But the SP group is not represented among the trustees.

The key pressure is regulatory, stemming from RBI rules requiring large non-bank lenders above certain asset thresholds or with public funds to list.

WHAT ARE THE RBI RULES AND WHY DO THEY APPLY TO TATA SONS?

As the holding company of a number of businesses, Tata Sons is classified as a core investment company, which falls under the RBI's regulations.

Revised rules issued last month state that companies with assets exceeding 1 trillion rupees ($10.45 billion), or those with direct or indirect access to public funds, must list.

As of March 2025, Tata Sons' standalone assets stood at 1.75 trillion rupees.

The RBI retains discretion to determine which firms can be exempt from listing.

HAS RBI CLARIFIED ITS STANCE

While analysts and legal experts say the revised rules make it harder for Tata Sons to remain private, the RBI has not publicly stated its position.

A request by Tata Sons for exemption is still under review. The company has reduced borrowings in an effort to avoid listing, but it remains unclear if that will suffice.

WHO IS OPPOSING THE LISTING?

Noel Tata has not made public comments, but has privately opposed converting Tata Sons into a listed entity. Media reports say he and other trustees unanimously opposed listing last year and asked the Tata Sons' chairman to engage with the RBI.

WHAT WILL HAPPEN AT THE SATURDAY BOARD MEET?

On Saturday, the boards of two key trusts — Sir Dorabji Tata Trust and Sir Ratan Tata Trust — which together hold over 50% of Tata Sons, will meet.

A central agenda item is discussion of the RBI rules and their implications for a potential listing.

Additional items include increasing the Tata Trusts’ representation on the Tata Sons board, the reappointment of its chairman, and a review of Tata Sons’ performance.

The board meeting, first since the RBI's rules were revised, is being keenly watched by the street for differences within the trustees on the listing of Tata Sons and how it may play out.

Under the Trusts' governance norms, resolutions are passed if a majority of trustees vote in favour. Therefore, if a majority of trustees support the proposal to list Tata Sons, the company would have to initiate the listing process.

($1 = 95.7150 Indian rupees)

(Reporting by Jayshree P Upadhyay and Gopika Gopakumar in Mumbai, editing by Ira Dugal and Raju Gopalakrishnan)

(([email protected]; 9920092491; Reuters Messaging: Twitter: @jaysh88))

May 14 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• Q4 CONSOL NET PROFIT 57.83 BILLION RUPEES

• Q4 CONSOL TOTAL REV FROM OPS 1.05 TRLN RUPEES

• DIVIDEND 3 RUPEES PER SHARE

• SEES JLR INVESTMENT SPEND IS PLANNED TO REMAIN AT £18 BN OVER THE FIVE-YEAR PERIOD FROM FY24

• CONTINUE TO DELIVER PROFITABLE, INDUSTRY-BEATING GROWTH IN DOMESTIC BUSINESS

• WILL CONTINUE TO STEP-UP GROWTH AT JLR WITH DELIVERY OF LAUNCHES OVER NEXT 18 MONTHS

• TATA MOTORS PASSENGER VEHICLES ON JLR - WILL REDUCE BREAKEVEN VOLUMES TOWARDS 300K IN TWO YEARS BY FOCUSING ON £1.7BN OF SAVINGS

• TATA MOTORS PASSENGER VEHICLES ON JLR - PROFITABILITY IMPACTED BY ONGOING INCREMENTAL US TARIFFS AND INCREASED VME IN QTR

Further company coverage: TAMO.NS

(([email protected];;))

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

By Shritama Bose

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

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

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

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

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

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

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

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

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

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

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

(Editing by Antony Currie; Production by Ujjaini Dutta)

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

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

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

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

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

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

($1 = 0.8510 euros)

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

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Rewrites throughout with industry executive's comments, background

By Kashish Tandon

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

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

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

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

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

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

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

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

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

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

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

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

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