Tata MotorsPassenger

Aug 14 (Reuters) - Shares of Tata Motors Passenger Vehicles TAMO.NS fell 4.8% to 332.1 rupees on Friday after the company's luxury unit, Jaguar Land Rover, reported lower quarterly volumes and high margin pressure, driving an 80% drop in quarterly net profit and weighing on investor sentiment.

(Reporting by Saikeerthi in Bengaluru; Editing by Harikrishnan Nair)

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Aug 13 (Reuters) - India's Tata Trusts said on Thursday that the trustees of the Sir Dorabji Tata Trust have passed a resolution to set up a selection committee to recommend a new chairman for Tata Sons.

The resolution comes a day after Chairman N. Chandrasekaran said he would not seek reappointment when his term ends in February 2027, following months of disagreements with Tata Trusts, the group's controlling shareholder.

(Reporting by Surbhi Misra in Bengaluru; Editing by Mrigank Dhaniwala)

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Recasts lede, changes throughout

Aug 12 (Reuters) - India's Tata Motors TATM.NS on Wednesday said it expects demand to stay firm in the coming quarters, supported by higher-payload trucks, electric vehicles and a strong government order book, as it plans price hikes and cost cuts to counter rising commodity-related expenses.

Rising aluminium and steel prices, exacerbated by the Middle East crisis, have pressured vehicle makers to raise prices to offset higher input costs. Tata Motors has increased prices of its vehicles twice since April. The company said it expects to mitigate ongoing commodity inflation through pricing actions and cost-control measures, while easing supply constraints through targeted de-bottlenecking initiatives in the second quarter.

For the first quarter through June, it reported a profit of 15.28 billion rupees ($160.3 million), compared with 14.11 billion rupees a year earlier.

Total expenses jumped 23.6% to 176.68 billion rupees, compressing the company's core profitability margin by 60 basis points to 11.7%.

Still, demand for Tata Motors' commercial vehicles remained resilient during the quarter, aided by higher freight availability, infrastructure projects, and growth in e-commerce led logistics.

Revenue from operations rose 23.3% to 193.3 billion rupees in the three months ended June 30, the company said.

Domestic volumes rose 26% and exports rose 35% from a year earlier, with Tata Motors looking to generate demand in more international markets as the Middle East crisis disrupts trade flows, while it expects to ramp up deliveries under a large commercial vehicle order in Indonesia.

Tata Motors results came hours after group holding company Tata Sons' Chairman N. Chandrasekaran said that he will not seek reappointment at the end of his term amid concerns over insufficient support from the holding company's board.

($1 = 95.3300 Indian rupees)

(Reporting by Saikeerthi in Bengaluru; Editing by Sonia Cheema, Mrigank Dhaniwala and Ronojoy Mazumdar)

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Rewrites with comments from source, background

By Nishit Navin and Gopika Gopakumar

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

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

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

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

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

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

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

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

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

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

($1 = 95.2200 Indian rupees)

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

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By Aditi Shah, Arpan Chaturvedi and Sarita Chaganti Singh

NEW DELHI, Aug 5 (Reuters) - India's auto industry said it would revamp numbers furnished to the government as it withdrew its first warning of damage to vehicle parts caused by contaminated ethanol-blended fuel, stoking consumer anger over the contentious policy.

Tuesday's move came hours after media reported the group's warning, sparking public uproar and forcing the petroleum ministry to issue a clarification.

"The referred numbers reported in the media need authentication," the Society of Indian Automobile Manufacturers said in a statement, "... and therefore SIAM is withdrawing its earlier communication."

SIAM, which sent its warning on July 28, and the recipient, India's petroleum ministry, did not immediately respond to requests for comment.

With their letter, seen by Reuters, India's automakers accept for the first time issues stemming from a mandatory policy that sparked street protests, legal cases and consumer anger after the government rolled it out at 90,000 fuel pumps.

The lobby group did not deny the issue of contamination in its statement, but said some numbers quoted "need authentication through collection of elaborate data ... across the country followed by a comprehensive consultation".

The group, whose members include Maruti Suzuki, Tata Motors, Toyota Motor Corp and Mercedes Benz, did not say when the efforts would be completed, however.

QUESTIONS FROM VEHICLE OWNERS

Vehicle owners are at best sceptical about the U-turn.

"​Did the science change overnight, or did the ministry call?" Nachiket Deshpande, one of dozens of angry social media users, asked on X.

The policy of blending 20% ethanol in petrol to yield a product called E20 replaced E10 nationwide in 2025.

That was well ahead of a 2030 deadline as Prime Minister Narendra Modi's government sought to cut costly petroleum imports, although E20-compliant cars had only begun hitting the roads in 2023.

The rollout provoked uproar instead among consumers who blame the fuel for mileage drops and vehicle damage, with many demanding a choice of lower ethanol blends, particularly for vehicles that cannot use E20.

The government sought to soothe the concerns with press statements and social media campaigns, drafting in executives from leading carmakers such as Maruti and Hyundai to defend the roll-out at a July press conference.

WARNINGS OF CORROSION OR WEAR

In its missive to the ministry, the group warned of elevated chloride and moisture levels in E20 fuel sold at retail outlets nationwide.

"Members are observing a huge increase in the issues in customer vehicle parts and replacement. Investigations ... reveal the failure is due to corrosion or wear caused by high chloride presence which is traced to the fuel used," it said.

Car parts in direct contact with the fuel or engine emissions suffered the most, "specifically after E20 implementation", it added.

It also flagged high moisture levels in the fuel that it said could immobilise the vehicle immediately after fuelling, calling on the ministry for tougher quality checks against contamination.

Fuel quality is monitored on a regular basis by oil marketing companies and only two cases of chloride contamination were found in a sample of 2,000 tests, the ministry had said on social media on Tuesday.

Speaking to Reuters on condition of anonymity on Wednesday, a senior government official called the fuel concerns a "misinformation campaign" against E20, playing out mainly on social media with no real evidence in cars on the road.

(Reporting by Aditi Shah, Arpan Chaturvedi and Sarita Chaganti Singh; Additional reporting by Aditya Kalra; Editing by Clarence Fernandez)

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Adds CEO comment in paragraph 3, details throughout

By Saikeerthi . and Chandini Monnappa

July 30 (Reuters) - Indian automaker Mahindra & Mahindra MAHM.NS said on Thursday it would double its auto production capacity over the next five years, after reporting a 6.8% rise in first-quarter profit driven by robust demand.

India's passenger vehicle makers are accelerating investments in electric vehicles as consumer adoption grows and emissions norms tighten, with Mahindra betting on a broader model lineup to challenge rivals such as Tata Motors and Hyundai.

"We're doubling EV production capacity, and that's going to be a key driver of growth over the next few years," Managing Director and CEO Anish Shah said in a post-earnings conference.

Demand in the quarter stayed strong, lifting quarterly revenue 23% to 419.2 billion rupees.

Government tax cuts last September continued to support demand for tractors, Mahindra's most profitable offering, with farm segment revenue rising 19% to 109.47 billion rupees and volumes climbing 18% to 158,000 units.

Revenue in the SUV segment rose 24.4% to 310.33 billion rupees.

However, the company's standalone operating margin in the auto segment narrowed to 7.1% from 8.9% a year earlier, tempering standalone net profit growth to 6.8% at 36.85 billion rupees, due to a sharp spike in commodity costs and supply-chain disruptions following the Middle East conflict.

The automaker said it absorbed about 400 to 500 basis points of commodity inflation during the quarter and raised prices across vehicle segments.

Group Chief Financial Officer Amarjyoti Barua said the company managed higher commodity costs through supply-chain execution while maintaining its focus on profitability.

The company, which rolled out a second round of price hikes on July 8, said future price hikes will depend on commodity prices but it does not have immediate plans for more pricing actions.

Commodity inflation in the farm business remained elevated, although it was lower than in the auto business, Shah said.

Shares of Mahindra & Mahindra rose as much as 3.3% to their highest level in two months after the earnings announcement.

($1 = 95.6900 Indian rupees)

(Reporting by Saikeerthi, Chandini Monnappa and Kashish Tandon, in Bengaluru; Editing by Harikrishnan Nair, Mrigank Dhaniwala and Janane Venkatraman)

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July 27 (Reuters) - Tata Motors Passenger Vehicles TAMO.NS said on Monday that flooding from heavy rainfall in western India has temporarily disrupted operations at its Sanand plant in Gujarat.

The company said it expects production to resume at the plant, which manufactures Tiago, Tigor, Nexon and Sierra vehicles, over the next few days.

(Reporting by Urvi Dugar in Bengaluru)

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An earlier version of this story incorrectly stated that Maruti Suzuki is selling fewer cars. It sold 1.82 million units in India in the latest fiscal year, up from a pre-COVID high of 1.73 million.

By Aditi Shah

NEW DELHI, July 20 (Reuters) - For some 40 years, Suzuki cars dominated India's roads.

The Japanese company's relentless focus on keeping prices and running costs low put millions of people behind the wheel. Hatchbacks made by its Indian arm Maruti Suzuki commanded between half and four-fifths of the country's new car sales in recent decades.

But as Indians got richer, they gravitated to bigger and flashier rides – and the automaker's emphasis on affordability started to become a drag. Maruti Suzuki's share of the world's third-largest autos market now lingers at around 39%, near an all-time low.

Suzuki's struggles reflect how cost-sensitive managers in Japan were slow to adapt to the changing tastes of newly affluent Indians, four people familiar with its business told Reuters. Executives, the people said, for years felt that demand for sunroofs, advanced technology and SUVs hadn't trumped questions of affordability for Indians.

Reuters is reporting for the first time details about the deliberations between Indian and Japanese executives at Suzuki as they struggled to pivot beyond a long-successful strategy that emphasized value before almost everything else.

Maruti Suzuki managers first floated the idea of adding sunroofs about a decade ago, the people said. But Japanese bosses considered the feature – which has become a symbol of upward mobility in India – impractical given India's extreme heat and dusty roads. They worried that adding a more powerful air conditioning unit and strengthening the cabin to accommodate the panel would increase costs and distract from Suzuki's mission of providing affordable transport.

The carmaker didn't introduce sunroofs until 2022. By then, fast-growing domestic rivals Tata Motors and Mahindra & Mahindra — which both currently have a market share of around 14% — had sunroofs as standard features on between a quarter and a third of their cars sold in India, according to data from auto research firm JATO Dynamics.

This account of the missteps that eroded Suzuki's iron grip on India and its subsequent efforts to woo customers back is based on interviews with more than 20 people, including executives, suppliers and others with direct knowledge of the automaker and its Indian business. Most spoke on condition of anonymity because they were not allowed to talk to the media.

Maruti's head of corporate affairs, Rahul Bharti, said in an interview that Japanese managers were not reluctant to embrace the changing tastes of local customers. Instead, he said, they had prioritized factors such as cost and climate, as well as emissions and safety considerations.

Indian and Japanese executives engage in "extensive" talks before introducing products and new features, Bharti said. Maruti's market share had declined recently because of a collapse in demand for small cars, the automaker's slow rollout of SUVs and its 2020 decision to stop selling diesel cars, he added.

While it is committed to building affordable and compact models, Suzuki has now directed local managers to "pay more attention to the Indian customer," Bharti said.

Tata and Mahindra did not return requests for comment.

To be sure, Maruti Suzuki still runs a lucrative business in India. Revenue has more than doubled over the last five years to $19 billion and profit tripled to $1.5 billion as margins improved. About 60% of the 3.3 million cars Suzuki sold in the last financial year were in India, and Maruti contributed nearly half of its profits.

But while it is making more money, the company has fallen short of chief executive Toshihiro Suzuki's goal of owning half the market.

Maruti Suzuki also risks being seen by younger drivers as a "brand for their parents or grandparents," said Toshihide Kinoshita, an automotive analyst at Nomura Securities.

In India, the typical buyer of a new car is in their mid-30s. The average age in the United States is 51, according to data from Cox Automotive.

THE PEOPLE'S CAR

Japanese car manufacturers increasingly see India, the world's fastest-growing major economy, as a lifeline.

Many face an existential threat in traditional strongholds like Southeast Asia from the low costs and fast-paced innovation of Chinese rivals. They are also being squeezed by tariffs in the United States and slow growth at home as Japan's population shrinks.

Chinese EV makers, however, are largely shut out of India, which has increased scrutiny of investments from China after a deadly border clash between the two countries in 2020. Japanese carmakers sense the opportunity: Toyota and Suzuki have announced plans to spend a cumulative $11 billion to expand manufacturing and other operations in India by 2030.

Maruti Suzuki is now a symbol of Prime Minister Narendra Modi's push to turn India into a global manufacturing hub.

Suzuki first invested in Maruti in the early 1980s when the Indian brand was state-owned. Then-Prime Minister Indira Gandhi wanted to provide a "people's car" to fulfill the dream of her late son Sanjay, an autos enthusiast who had sought to bring affordable mobility to the middle class.

The Maruti 800 arrived in 1983. It was priced at around $9,000 in inflation-adjusted dollars and became synonymous with India's modernization. Over three decades, Maruti sold nearly 3 million of the small hatchbacks. Such was the scale of Suzuki's dominance in India that its former CEO Osamu Suzuki said he aimed to keep a 50% market share "for eternity."

India's economy has grown some 18-fold since Suzuki entered the market. Yet Suzuki's cost-control culture meant managers initially faced resistance when they lobbied to offer advanced driver assistance systems that Mahindra introduced around 2021, some four years before Maruti, three people said.

For many buyers, the modernity and aspiration that Maruti once represented is found in Tata and Mahindra's feature-laden SUVs, rather than Maruti's workaday models. Maruti does not have "the bells and whistles" that customers now want, said JATO Dynamics president Ravi Bhatia.

One erstwhile loyalist looking elsewhere is Anil Tiwari, who is seeking a car to supplement his family's 17-year-old Maruti Alto hatchback. The insurance agent has narrowed his choices down to a Mahindra or Toyota SUV after his wife and children demanded a sunroof and a large infotainment display, among other technologies.

"My wife and children want the best," he said.

FIGHTBACK?

Maruti has been here before. Its market share dipped below 40% in 2011, though newer models and an expanded sales network helped it recover.

This time, competition is fiercer. Better equipped rivals and the fall in market share mean Suzuki now faces its toughest situation in India "in the last 40 years," chief executive Suzuki told reporters at the Tokyo auto show last year.

In an attempt to regain dominance, Suzuki is expanding R&D teams at Maruti and giving executives flexibility to make more decisions locally, five people told Reuters. It aims to cut the average product development time to 36 months from 48 months, four sources added.

Maruti has also built more car-testing labs in India to speed up design and execution, Bharti told Reuters.

Maruti has introduced pricier and more design-forward cars, including a three-row minivan that starts at about $25,000. It plans seven more SUVs by 2030, which will join a recently released model that has a sunroof and advanced driver assistance systems.

The brand is also reversing its decision not to use large display screens in some vehicles, according to three sources, who said Japanese executives had felt they would be a distraction for drivers.

Bharti confirmed that Maruti and Suzuki executives had discussed those concerns. Large displays and similar features are always "on the cards," he said, though the company continues to weigh customer demand against the realities of Indian driving conditions.

One open question is whether Maruti's more expensive cars will sell. The brand's association with affordability means Indians willing to spend more usually don't consider Maruti, six people told Reuters. Less than 3% of Maruti's sales come from cars priced above $15,500, compared with over 21% for the rest of the industry, according to JATO Dynamics.

That perception is shaping the choice for buyers like Deepanshu Singhal, a sales executive who plans to upgrade to a Mahindra or Toyota SUV from the Maruti Dzire sedan he has driven for seven years.

"I'd rather spend a little more money for a better car that has some freshness and newness," he said.

(Reporting by Aditi Shah; Additional reporting by Daniel Leussink in Tokyo, Saurabh Sharma in New Delhi, Sumit Khanna in Ahmedabad and Jatindra Dash in Bhubaneswar; Editing by David Dolan and Katerina Ang)

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Adds details and background

July 21 (Reuters) - India's top carmaker Maruti Suzuki MRTI.NS said on Tuesday it would increase vehicle prices by up to 30,000 rupees ($311.74) from August, its second portfolio-wide hike in about two months, citing sustained cost pressures.

Here are more details:

• The automaker had earlier announced a similar price hike of 30,000 rupees from June, while offering price protection to some entry-level cars

• The renewed Middle East conflict has disrupted global trade routes and energy markets, driving up prices of key inputs and pressing companies to pass on higher costs to customers

• With inflationary pressures now at elevated levels and the adverse cost environment persisting, the company has to pass on a portion of the increased costs to the market, Maruti said in a statement

• Company joins peer Tata Motors Passenger Vehicles TAMO.NS, which has also raised prices twice while Mahindra & Mahindra MAHM.NS and Hyundai Motor India HYUN.NS have raised once each

• Shares closed 0.6% higher at 13,597 rupees reversing course from earlier in the day

($1 = 96.2325 Indian rupees)

(Reporting by Urvi Dugar in Bengaluru; Editing by Nivedita Bhattacharjee)

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By Aditi Shah

NEW DELHI, July 20 (Reuters) - For some 40 years, Suzuki cars dominated India's roads.

The Japanese company's relentless focus on keeping prices and running costs low put millions of people behind the wheel. Hatchbacks made by its Indian arm Maruti Suzuki commanded between half and four-fifths of the country's new car sales in recent decades.

But as Indians got richer, they gravitated to bigger and flashier rides – and the automaker's emphasis on affordability started to become a drag. Maruti Suzuki's share of the world's third-largest autos market now lingers at around 39%, near an all-time low.

Suzuki's struggles reflect how cost-sensitive managers in Japan were slow to adapt to the changing tastes of newly affluent Indians, four people familiar with its business told Reuters. Executives, the people said, for years felt that demand for sunroofs, advanced technology and SUVs hadn't trumped questions of affordability for Indians.

Reuters is reporting for the first time details about the deliberations between Indian and Japanese executives at Suzuki as they struggled to pivot beyond a long-successful strategy that emphasized value before almost everything else.

Maruti Suzuki managers first floated the idea of adding sunroofs about a decade ago, the people said. But Japanese bosses considered the feature – which has become a symbol of upward mobility in India – impractical given India's extreme heat and dusty roads. They worried that adding a more powerful air conditioning unit and strengthening the cabin to accommodate the panel would increase costs and distract from Suzuki's mission of providing affordable transport.

The carmaker didn't introduce sunroofs until 2022. By then, fast-growing domestic rivals Tata Motors and Mahindra & Mahindra — which both currently have a market share of around 14% — had sunroofs as standard features on between a quarter and a third of their cars sold in India, according to data from auto research firm JATO Dynamics.

This account of the missteps that eroded Suzuki's iron grip on India and its subsequent efforts to woo customers back is based on interviews with more than 20 people, including executives, suppliers and others with direct knowledge of the automaker and its Indian business. Most spoke on condition of anonymity because they were not allowed to talk to the media.

Maruti's head of corporate affairs, Rahul Bharti, said in an interview that Japanese managers were not reluctant to embrace the changing tastes of local customers. Instead, he said, they had prioritized factors such as cost and climate, as well as emissions and safety considerations.

Indian and Japanese executives engage in "extensive" talks before introducing products and new features, Bharti said. Maruti's market share had declined recently because of a collapse in demand for small cars, the automaker's slow rollout of SUVs and its 2020 decision to stop selling diesel cars, he added.

While it is committed to building affordable and compact models, Suzuki has now directed local managers to "pay more attention to the Indian customer," Bharti said.

Tata and Mahindra did not return requests for comment.

To be sure, Maruti Suzuki still runs a lucrative business in India. Revenue has more than doubled over the last five years to $19 billion and profit tripled to $1.5 billion as margins improved. About 60% of the 3.3 million cars Suzuki sold in the last financial year were in India, and Maruti contributed nearly half of its profits.

But while it is making more money from selling fewer cars, the company has fallen short of chief executive Toshihiro Suzuki's goal of owning half the market.

Maruti Suzuki also risks being seen by younger drivers as a "brand for their parents or grandparents," said Toshihide Kinoshita, an automotive analyst at Nomura Securities.

In India, the typical buyer of a new car is in their mid-30s. The average age in the United States is 51, according to data from Cox Automotive.

THE PEOPLE'S CAR

Japanese car manufacturers increasingly see India, the world's fastest-growing major economy, as a lifeline.

Many face an existential threat in traditional strongholds like Southeast Asia from the low costs and fast-paced innovation of Chinese rivals. They are also being squeezed by tariffs in the United States and slow growth at home as Japan's population shrinks.

Chinese EV makers, however, are largely shut out of India, which has increased scrutiny of investments from China after a deadly border clash between the two countries in 2020. Japanese carmakers sense the opportunity: Toyota and Suzuki have announced plans to spend a cumulative $11 billion to expand manufacturing and other operations in India by 2030.

Maruti Suzuki is now a symbol of Prime Minister Narendra Modi's push to turn India into a global manufacturing hub.

Suzuki first invested in Maruti in the early 1980s when the Indian brand was state-owned. Then-Prime Minister Indira Gandhi wanted to provide a "people's car" to fulfill the dream of her late son Sanjay, an autos enthusiast who had sought to bring affordable mobility to the middle class.

The Maruti 800 arrived in 1983. It was priced at around $9,000 in inflation-adjusted dollars and became synonymous with India's modernization. Over three decades, Maruti sold nearly 3 million of the small hatchbacks. Such was the scale of Suzuki's dominance in India that its former CEO Osamu Suzuki said he aimed to keep a 50% market share "for eternity."

India's economy has grown some 18-fold since Suzuki entered the market. Yet Suzuki's cost-control culture meant managers initially faced resistance when they lobbied to offer advanced driver assistance systems that Mahindra introduced around 2021, some four years before Maruti, three people said.

For many buyers, the modernity and aspiration that Maruti once represented is found in Tata and Mahindra's feature-laden SUVs, rather than Maruti's workaday models. Maruti does not have "the bells and whistles" that customers now want, said JATO Dynamics president Ravi Bhatia.

One erstwhile loyalist looking elsewhere is Anil Tiwari, who is seeking a car to supplement his family's 17-year-old Maruti Alto hatchback. The insurance agent has narrowed his choices down to a Mahindra or Toyota SUV after his wife and children demanded a sunroof and a large infotainment display, among other technologies.

"My wife and children want the best," he said.

FIGHTBACK?

Maruti has been here before. Its market share dipped below 40% in 2011, though newer models and an expanded sales network helped it recover.

This time, competition is fiercer. Better equipped rivals and the fall in market share mean Suzuki now faces its toughest situation in India "in the last 40 years," chief executive Suzuki told reporters at the Tokyo auto show last year.

In an attempt to regain dominance, Suzuki is expanding R&D teams at Maruti and giving executives flexibility to make more decisions locally, five people told Reuters. It aims to cut the average product development time to 36 months from 48 months, four sources added.

Maruti has also built more car-testing labs in India to speed up design and execution, Bharti told Reuters.

Maruti has introduced pricier and more design-forward cars, including a three-row minivan that starts at about $25,000. It plans seven more SUVs by 2030, which will join a recently released model that has a sunroof and advanced driver assistance systems.

The brand is also reversing its decision not to use large display screens in some vehicles, according to three sources, who said Japanese executives had felt they would be a distraction for drivers.

Bharti confirmed that Maruti and Suzuki executives had discussed those concerns. Large displays and similar features are always "on the cards," he said, though the company continues to weigh customer demand against the realities of Indian driving conditions.

One open question is whether Maruti's more expensive cars will sell. The brand's association with affordability means Indians willing to spend more usually don't consider Maruti, six people told Reuters. Less than 3% of Maruti's sales come from cars priced above $15,500, compared with over 21% for the rest of the industry, according to JATO Dynamics.

That perception is shaping the choice for buyers like Deepanshu Singhal, a sales executive who plans to upgrade to a Mahindra or Toyota SUV from the Maruti Dzire sedan he has driven for seven years.

"I'd rather spend a little more money for a better car that has some freshness and newness," he said.

(Reporting by Aditi Shah; Additional reporting by Daniel Leussink in Tokyo, Saurabh Sharma in New Delhi, Sumit Khanna in Ahmedabad and Jatindra Dash in Bhubaneswar; Editing by David Dolan and Katerina Ang)

(([email protected], X:@aditishahsays))

BENGALURU, July 17 (Reuters) - Indian engineering research and development firm Tata Technologies TATE.NS reported a 6.1% rise in first-quarter profit on Friday, on a boost from its services segment.

• Tata Technologies, which provides engineering, product design and manufacturing digitalisation services to automotive, aerospace and industrial machinery clients, counts JLR and Tata Motors TATM.NS among its largest clients

• The Tata group company's profit rose to 1.81 billion ​rupees ($18.8 million) for the quarter ⁠ended June 30, from 1.70 billion ​rupees a year earlier

• Revenue jumped 34% to 16.65 billion rupees

• The company retained its double-digit organic revenue growth for fiscal year 2027 on the back of investments in AI, operational efficiency, and continued portfolio diversification, CEO Warren Harris said in a statement

• Engineering research and development firms, which largely depend on orders from the U.S. and Europe, have been under pressure due to slowing adoption of EVs and clients cutting back on spending amid geopolitical tensions

($1 = 96.37 Indian rupees)

(Reporting by Sai Ishwarbharath B in Bengaluru; Editing by Mrigank Dhaniwala)

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July 15 (Reuters) -

• INDIA AUTO INDUSTRY BODY SIAM - INDIA'S JUNE TOTAL DOMESTIC PASSENGER VEHICLE SALES 3,88,144 UNITS

• SIAM - INDIA'S JUNE 2-WHEELER SALES 18,51,400 UNITS

• SIAM - INDIA'S JUNE 3-WHEELER SALES 77,951 UNITS

• SIAM - OVERALL CONSUMER SENTIMENT AND DEMAND REMAIN STEADY AT PRESENT

• SIAM: INDUSTRY CONTINUES TO CLOSELY MONITOR GEOPOLITICAL DEVELOPMENTS AND PROGRESS OF MONSOON

Further company coverage: ASOK.NS

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

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

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July 2 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• TATA MOTORS PASSENGER VEHICLES - JLR Q1 FY27 WHOLESALES 79,300 UNITS, DOWN 9.2% YEAR-ON-YEAR

• TATA MOTORS PASSENGER VEHICLES - JLR Q1 FY27 RETAIL SALES 80,000 UNITS, DOWN 15.3% YEAR-ON-YEAR

• TATA MOTORS PASSENGER VEHICLES - JLR VOLUMES WERE AFFECTED BY TEMPORARY SUPPLY CONSTRAINTS

Source text: ID:nBSEbrNxRG

Further company coverage: TAMO.NS

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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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Corrects to add dropped words in paragraph 12

By Blaine Julian Rodrigues

BENGALURU, June 30 (Reuters) - Chinese carmakers remain largely shut out of the Indian auto market, but their electric-vehicle technology is gaining traction as local manufacturers increasingly turn to it to be competitive.

Is this two-way traffic with both countries standing to benefit? And how many road-related puns can I squeeze into one newsletter?

That's our main focus this week (Chinese EV tech, not the puns). Write to me at [email protected]with your thoughts.

And scroll down to our 'must-reads' section for an analysis on how El Nino and ethanol are squeezing India's sugar exports.

THIS WEEK IN ASIA

• Philippines leads the world in rush to solar as power prices soar

• Ousted Bangladesh PM Hasina vows to return home this year

• Facing China, one Taiwan Coast Guard officer draws strength from the gods

• Chinese AI, chip firms are driving an onshore IPO rebound

• Korea taps Samsung, SK Hynix in $576 billion AI-chip drive to cement global leadership

HAPPILY EV AFTER?

Tata Motors' deal to use Chery's EV platform underscores the importance of Chinese technology, which many analysts say is cheaper and faster to deploy. For Tata, Chery's platform is seen as fast-tracking the launch of its premium electric car brand and is expected to make up for lost time as it seeks to maintain the top spot in the domestic EV market.

You can read more on this in Aditi Shah's analysis.

India's automakers are increasingly importing Chinese EV technology while steering clear of deeper equity partnerships due to political sensitivities.

Tata and Chery stressed that their deal doesn't involve an equity stake or any transfer of technological know-how.

New Delhi tightened investment rules in 2020 and deadly border clashes increased scrutiny of Chinese companies, effectively freezing China out of the world's third-largest car market.

In 2025, Beijing slammed the brakes on the export of its tech know-how in the tariff standoff with the U.S.

There are signs of detente though, with India offering faster approvals for investments involving minority Chinese stakes across a wider range of sectors.

For now, deals like the Tata-Chery one appear to benefit both sides. India gets access to advanced technology, and China gains a foothold in the Indian car market.

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

IMPACT ON MAJOR PLAYERS

China's overcrowded domestic market and the resulting fierce price wars have left car manufacturers struggling to be profitable.

Exports — of cars and technology — are a survival strategy, with China having already raced ahead of Japan as the world's largest vehicle exporter in recent years.

China's EV tech gives it an on-ramp to India, which is sure to have Japanese automakers nervously checking the rearview mirror after they poured billions into making the South Asian nation a manufacturing hub.

If these tech deals rev up, will it put those billions at risk? The Indian car market, particularly for EVs, looks set for an interesting road ahead.

MARKET MATTERS

An El Nino-weakened monsoon this summer could mean the lowest rainfall in 11 years. And with that in mind, India has drawn up contingency plans for over 300 districts that are vulnerable to water shortages.

The monsoon has so far brought precipitation about 43% below average, and the weather office has forecast weak rains through the week ending July 2. States have been advised to encourage farmers in rain-fed areas to shift to short-duration and less water-intensive crops.

THIS WEEK'S MUST READ

Once the world's second-largest sugar exporter, India is expected to have little surplus for export for at least three more seasons.

The twin pressures of El Nino weather conditions and rising ethanol demand from biofuel policies are poised to keep millions of tons of sugar off the world market. The prolonged absence of Indian exports would remove a key balancing supplier and reshape global sugar trade flows.

Government and industry officials even warn India could soon be forced to import sugar for the first time since 2018.

Read more on that here.

(Reporting by Blaine Rodrigues; Editing by Kevin Buckland)

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) - Tata Motors-owned TAMO.NS Jaguar Land Rover is recalling 250,857 SUVs in the U.S. over an air bag defect that could increase the risk of injury in a crash, the U.S. National Highway Traffic Safety Administration said on Thursday.

• The recall covers certain Land Rover Defender, Discovery, and Range Rover SUVs, the U.S. auto safety regulator said.

• The driver's air bag clockspring connector may corrode, preventing the air bag from deploying as intended, it said.

• Dealers will apply a protective lubricant gel to the connector terminals free of charge, the regulator said.

(Reporting by Bipasha Dey in Bengaluru; Editing by Subhranshu Sahu)

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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)

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

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) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• TATA MOTORS PASSENGER VEHICLES- EXPECTS 15% CAGR VOLUME GROWTH OVER FY26 TO FY31

• TATA MOTORS PASSENGER VEHICLES- EXPECTS 5%-6% INCREASE IN MARKET SHARE OVER FY26 TO FY31

• TATA MOTORS PASSENGER VEHICLES - SEES EBIT MARGIN AT 10% IN FY31

• TATA MOTORS PASSENGER VEHICLES- WILL EXPAND ANNUAL PRODUCTION CAPACITY TO 1.3 MILLION WITHIN 2–3 YEARS

• TATA MOTORS PASSENGER VEHICLES - SEES REVENUE OF MORE THAN 6 TRLN RUPEES IN FY31

Source text: ID:nBSE1QH3wd

Further company coverage: TAMO.NS

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Adds details of price hikes paragraph 2 onwards

June 18 (Reuters) - India's Tata Motors TATM.NS said on Thursday it would increase prices across its commercial vehicle range by up to 2.5%, effective July 1, its second hike in three months as automakers grapple with rising costs from the Middle East war.

The hike is aimed at partially offsetting the impact of rising commodity prices and other input costs, the demerged commercial vehicle arm of the Tata group said.

It had raised prices of its commercial vehicles by up to 1.5% from April 1, also citing higher input costs.

Automakers in India have raised prices in recent months as they seek to cushion the impact of higher raw material costs, including steel and other commodities, amid war-linked cost pressures.

Last week, Tata Motors Passenger Vehicles TAMO.NS said it would raise prices of its cars and SUVs, including electric vehicles, by up to 1.5% from July 1, its second hike in four months.

Rival automaker Maruti Suzuki MRTI.NS raised vehicle prices by up to 30,000 rupees ($314.42) from June, while Hyundai Motor India HYUN.NS also increased prices from June 1.

(Reporting by Chandini Monnappa in Bengaluru; Editing by Sonia Cheema)

(([email protected]; https://www.linkedin.com/in/chandini-monnappa-8a37b013b/;))

Recasts with details from the investor presentation

By Aditi Shah

NEW DELHI, June 17 (Reuters) - Jaguar Land Rover will prioritise growth in the U.S. as it seeks to counter weakness in its traditional stronghold of China, but will deliver only a 4% profit margin, it said on Wednesday, sending shares of its Indian parent Tata Motors tumbling.

The British carmaker's plan to rebuild profitability and cut costs fell short of investors' expectations, triggering a selloff with shares of Tata Motors TAMO.NS falling by as much as 10%. JLR contributes about 80% of Tata's revenues.

In line with weakness across the auto sector, the Range Rover manufacturer has navigated a difficult year. Challenges have included U.S. trade tariffs, a cyberattack that halted production, and cost and supply chain disruptions due to the Iran war.

JLR's profit margin fell to 0.7% last fiscal year from near double-digits in earlier years. While a 4% forecast for the current year is an improvement, it is far from the 10% margin the company had targeted.

A 'HYPER-FOCUS' ON THE US

JLR, however, said it hopes a "hyper focus" on the U.S., where a wealthy elite is boosting demand for luxury, will allow it to sell high-margin products and boost profits.

"Our aspiration, in the coming years, is to grow our U.S. business to the size of the entire JLR business as it exists today," CEO PB Balaji said in a press note.

Through its partnership with Stellantis, JLR will expand in the North American market where it has no manufacturing presence, marking a shift from China.

The world's largest car market, China was a major source of growth for JLR, but a combination of economic weakness there and a cutthroat local industry has made it much harder for international companies to compete.

The recovery plan also includes a diversification of its strategy for powertrains needed for EVs. The carmaker plans to invest in hybrid technology for its Range Rover, Defender and Discovery brands, which largely run on conventional fuel, as it seeks to counter a slowdown in electrification globally.

JLR reiterated plans to cut $2.3 billion in costs over two years and reduce volumes required for breakeven to 300,000 units from 425,000 units earlier. It maintained an £18 billion ($24.12 billion) investment plan from fiscal 2024.

($1 = 0.7462 pounds)

(Reporting by Aditi Shah, Urvi Dugar and Bharath Rajeswaran in Bengaluru; Editing by Harikrishnan Nair, Eileen Soreng and Barbara Lewis)

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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 - Tata Motors Passenger Vehicles TAMO.NS said on Friday it would raise prices of its cars and sport utility vehicles, including electric vehicles, by up to 1.5% from July 1.

The company said the price increase was aimed at partially offsetting rising input costs and sustained inflationary pressures.

The extent of the increase will vary across models and variants, it said.

(Reporting by Mridula Kumar in Bengaluru)

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By Praveen Paramasivam and Chandini Monnappa

CHENNAI/BENGALURU, June 8 (Reuters) - From smaller packs on shelves to higher prices at checkout, Indian companies are scrambling to protect their margins as surging oil, freight and insurance costs - and strained household budgets - pile on pressure.

The U.S.-Israeli war on Iran has disrupted trade routes and lifted input costs globally, hitting import-reliant economies like India harder, where a weaker rupee is adding to inflation and complicating pricing decisions as demand remains uneven.

"We are among the world's most vulnerable countries," economist Jayati Ghosh said, warning higher oil and fertiliser costs, weaker Gulf demand, softer remittances and potential capital outflows could stoke inflation and slow growth.

Consumer goods makers Hindustan Unilever HLL.NS, Godrej Consumer Products GOCP.NS and Dabur India DABU.NS have already rolled out low- to mid-single-digit price hikes across categories, with Britannia BRIT.NS preparing similar moves.

Pricing power remains weak in mass segments, with companies holding the line on 10- to 20-rupee (11- to 21-cent) packs and shrinking product sizes instead of raising prices outright.

"We are reducing grammage because we can't breach those price points," said Mohit Malhotra, global CEO at Dabur.

Automakers Maruti Suzuki MRTI.NS, Mahindra & Mahindra MAHM.NS, Tata Motors Passenger Vehicles TAMO.NS and Hyundai Motor India HYUN.NS have also hiked prices.

"We were left with no choice," said Partho Banerjee, Maruti's senior executive officer for marketing and sales, adding that raising prices was not good for customers, especially first-time buyers.

Airlines IndiGo INGL.NS and Air India are trimming capacity, especially on fuel-heavy international routes, and increasing fares to offset higher aviation fuel costs.

Consumers are feeling the squeeze.

"I have no family to feed, no school fees, and no monthly payments on a car. I'm still watching my spending as prices are up for almost everything, from travel to packaged food," said Aditi Anjana, a Mumbai-based communications professional who is in her 30s.

BELT-TIGHTENING MODE

With limited room to pass on costs, companies are turning inward and cutting costs to cushion margins.

Hindustan Unilever HLL.NS has cut advertising spend, while others are trimming non-essential travel and marketing costs.

"The scope for further cost-cutting is gradually narrowing," Axis Direct analyst Uttam Kumar Srimal said, adding prolonged commodity and fuel inflation could force sharper price hikes or margin hits.

Sectors with high global exposure, including aviation, oil and gas, chemicals, logistics and capital goods, may remain under margin pressure, said Shweta Rajani, associate director at Anand Rathi Wealth.

RESETTING SUPPLY CHAINS

Firms are also reworking supply chains to manage disruptions. Companies with Middle East exposure are rerouting shipments, diversifying sourcing, and shifting production.

Dabur, an Indian rival of Colgate-Palmolive, is using alternative routes via Egypt and Turkey, while packaged goods maker Britannia is bringing some production back home.

Some firms are also front-loading purchases and closely tracking demand to avoid overstocking, underscoring tighter working capital discipline.

Arvind Fashions ARVF.NS has advanced inventory buys to lock in costs and is relying more on local suppliers, while Tata Group retailer Trent TREN.NS is tweaking raw materials, packaging, and product development.

"My priority is not to take prices up," said Umashan Naidoo, head of customer and beauty at Trent, which offers Gen-Z-focused affordable trendwear through its brand ​Zudio.

($1 = 94.9450 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Chandini Monnappa in Bengaluru; Additional reporting by Surbhi Misra; Editing by Dhanya Skariachan and Himani Sarkar)

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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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