M&M

March 24 (Reuters) - Indian automaker Mahindra & Mahindra MAHM.NS is in talks to buy Japan's Sumitomo Corp's 8053.T entire 44% stake in heavy vehicle-maker SML Isuzu SMLI.NS, CNBC Awaaz reported on Monday, citing sources.

Mahindra is considering offering the Japanese trading firm 1,400 rupees to 1,500 rupees per share, according to the report, which will value SML Isuzu at 20.26 billion rupees ($236 million), as per Reuters calculations.

Shares of SML Isuzu, which manufactures trucks and buses, rose 5.4% to 1,741.20 rupees in Mumbai.

Mahindra's board is likely to meet this week to discuss the proposed deal, the report said. The company makes trucks and SUVs.

"We do not comment on market speculation," Mahindra said.

SML Isuzu did not immediately respond to a request for comment.

Japan's Isuzu 7202.T, which manufactures SUVs and pickup trucks through another entity, owns a 15% stake in SML Isuzu.

($1 = 85.6360 Indian rupees)

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

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March 21 (Reuters) - Mahindra and Mahindra Ltd MAHM.NS:

• MAHINDRA & MAHINDRA - MAHINDRA ANNOUNCES PRICE HIKE ACROSS SUV AND CV RANGE

• MAHINDRA & MAHINDRA - PRICE INCREASE ATTRIBUTED TO RISING INPUT COST, INCREASED COMMODITY PRICES

• MAHINDRA & MAHINDRA - INCREASE IN PRICES OF UP TO 3% FOR SUV AND CV RANGE, EFFECTIVE APRIL 2025

Source text: [ID:]

Further company coverage: MAHM.NS

(([email protected];))

By Aditi Shah

NEW DELHI, March 14 (Reuters) - Skoda Auto plans to manufacture electric cars in India and will invest in the country by itself if its search for a local partner fails, the Czech carmaker's CEO said, as its parent Volkswagen Group fights a $1.4 billion tax demand case.

VW's local unit Skoda Auto Volkswagen India is embroiled in a legal tussle with the country's tax department over allegations that it misclassified imports of some Audi, VW and Skoda cars to evade higher duties.

If the company loses the battle, against what it calls an "impossibly enormous" demand, it will need to fork out $2.8 billion including penalties and interest, which could become a matter of survival, one of VW's lawyers said last month.

CEO Klaus Zellmer told the media this week that he was unable to comment on the "ongoing, very critical procedure", but that Skoda is targeting India as it looks to the world's third-largest car market for growth outside Europe.

"(It) is still our will and our strategy to form a joint venture to be even stronger in India ... but if there's no right partner we stay single and be still attractive and successful," he told reporters at a post-earnings press conference.

Skoda has been leading Volkswagen's India strategy since 2018, but sales have remained low with the Volkswagen and Skoda brands together accounting for just 2% of India's 4 million units a year car market.

But with stricter vehicle fuel efficiency standards set to kick in from 2027, all carmakers will have to introduce EVs, and Skoda believes its access to the Volkswagen Group's EV technology might give it an edge.

"We can offer very innovative, very cost efficient solutions for battery electric vehicles, and this is our strategy also for India," Zellmer told reporters on the virtual call.

Skoda has an agreement with India's Mahindra & Mahindra MAHM.NS to supply some EV components. Zellmer did not name Mahindra or any other company in terms of potential collaborators, but said talks were ongoing with partners with "local roots".

India, where small cars from Suzuki Motor 7269.T and Hyundai HYUN.NS, 005380.KS dominate the roads, has proved a difficult market for Western carmakers.

But Skoda, which no longer has a big presence in China and exited Russia, says India is a "major focus" for its business.

The company has previously shown interest in a government programme that will offer incentives for local EV manufacturing.

It has also signed an initial agreement with the government in India's western Maharashtra state to invest about $1.7 billion to build EVs.

Zellmer said it was important for Skoda to get its portfolio right in India, a market he said was a "gateway" for Southeast Asia and the Middle East.

"We are really looking for us building on ... one of the biggest potential growth markets globally," he added.

(Reporting by Aditi Shah; Additional reporting by Victoria Waldersee in Berlin; Editing by Kate Mayberry)

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

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

• INDIA'S FEB 2-WHEELER SALES 13,84,605 UNITS - INDUSTRY BODY

• INDIA'S FEB 3-WHEELER SALES 57,788 UNITS - INDUSTRY BODY

• INDIA'S FEB TOTAL DOMESTIC PASSENGER VEHICLE SALES 3,77,689 UNITS - INDUSTRY BODY

• INDIA AUTO INDUSTRY BODY: UPCOMING FESTIVITIES OF HOLI, UGADI IN MARCH LIKELY TO CONTINUE TO DRIVE DEMAND

Further company coverage: ASOK.NS

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By Aditi Shah

NEW DELHI, March 12 (Reuters) - Jaguar Land Rover has shelved plans to build electric vehicles at parent company Tata Motor's TAMO.NS upcoming $1 billion factory in southern India, four people with knowledge of the matter said.

The British luxury car unit was unable to find the right price-quality balance for locally sourced EV parts, three of them said, adding that the decision also reflects slowing demand for electric cars.

"For India, all the work (on JLR electric vehicles) has stopped. Everything has been suspended since about two months," said a supplier source.

Global car brands are revamping their electrification plans amid stiff competition from Chinese players, a shift in demand in favour of hybrids and as governments ease timelines to meet emission rules and EV sales targets.

JLR's decision is also expected to delay plans for Tata Passenger Electric Mobility, Tata's local electric car unit, to launch the first of its premium Avinya models, the sources said.

The cars are to be built on the same platform as JLR's electric vehicles and some components were to have been jointly sourced.

Tata began construction of the new factory, which will also assemble vehicles other than EVs, in September. The plant is slated to produce over 250,000 cars a year when it reaches full capacity in about 5-7 years.

The shelved plans called for JLR to manufacture more than 70,000 electric cars there and Tata's EV unit to build 25,000, the sources said.

The sources were not authorised to speak to media and declined to be identified.

Tata said in a statement to Reuters that the production timelines and choice of models to be built at the new factory in the state of Tamil Nadu will be aligned with Tata and JLR's broader strategy and market requirements.

Tata, the biggest seller in India's nascent EV market, faces growing pressure from rivals like JSW MG Motor and Mahindra and Mahindra MAHM.NS which have launched new, feature-rich models with longer driving ranges.

Tesla TSLA.O is also finalising plans to launch EVs in India, which is the world's third-largest car market with 4 million vehicles sold annually. EV sales currently account for about 2% of total car sales.

ECONOMICS NOT WORKING OUT

In November, JLR hosted a meeting with local suppliers in Mumbai where it shared details of its plans and talked about locally sourcing components.

Some suppliers were asked to provide initial information on the pricing of parts but those talks have now been suspended, according to the sources.

JLR has most of its production in Britain, Europe and China. But it assembles some of its cars like the Range Rover SUVs at Tata's plant in Pune in the western state of Maharashtra.

Tata's EV unit had planned to firm up orders with some suppliers by the end of January but is now making changes to its designs as the economics of its plan are not working without JLR, two of the sources said.

Tata in January pushed back the launch of its Avinya EV to 2026-2027 from an earlier plan for this year. It was not immediately clear if the current situation will cause further delays.

"As part of our rigorous product development process, we continuously evaluate key factors such as design, supply chain readiness, and unit economics to ensure a competitive and high-quality offering," Tata said in its statement.

(Reporting by Aditi Shah; Editing by Edwina Gibbs)

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

Repeats item first published on Wednesday with no changes to text

By Shivangi Acharya and Aditi Shah

NEW DELHI, March 5 (Reuters) - The United States wants India to eliminate tariffs on car imports under a proposed trade deal between the two nations, but New Delhi is reluctant to immediately bring down such duties to zero even as it considers further cuts, sources told Reuters.

India's high auto tariffs will feature in formal talks for a bilateral trade deal that are yet to begin, said one of the three sources, all of whom were briefed on the matter, paving the way for American electric vehicle maker Tesla TSLA.O, which is gearing up for an India launch.

Taxes on cars imported into India are as high as 110%, which Tesla chief Elon Musk has criticised as being among the steepest in the world. The EV giant last year shelved its plans to enter the world's third-largest car market for a second time.

Musk has now found support from U.S. President Donald Trump, who has repeatedly railed against India's high taxes and in an address to Congress on Tuesday slammed the country's auto tariffs of more than 100%, threatening reciprocal action.

"The U.S. ask is for India to bring tariffs down to zero or negligible in most sectors, except agriculture," the first source said, adding the expectation on New Delhi eliminating auto tariffs was "clearer than any other".

A second source said India was "listening to the U.S." and had not pushed back, adding it would respond with its position on the tariffs after consulting local industries.

The office of United States Trade Representative, India's trade ministry, and the foreign affairs ministry did not respond to requests for comment.

TRADE WORTH $500 BILLION

After a meeting between Trump and Indian Prime Minister Narendra Modi last month, the two nations agreed to resolve tariff rows and work on the first segment of a deal by the fall of 2025, aiming for bilateral trade worth $500 billion by 2030.

Indian trade minister Piyush Goyal is on a nearly week-long trip to the U.S. and on Tuesday met U.S. Commerce Secretary Howard Lutnick to pursue trade talks. He is also expected to meet the United States Trade Representative Jamieson Greer.

While India is unlikely to relent to U.S. demands to reduce tariffs on auto imports to zero immediately, it has been priming the industry to prepare for a lower tariff regime and be open to competition, said the first source and a fourth person.

Last month, the Indian government met domestic carmakers to decide on any tariff cuts and understand their reservations over taxes going down to zero immediately, the first source added.

India's 4 million-vehicles-a-year car market is one of the most protected in the world and its domestic players have previously argued against lowering tariffs, saying such a move would dry up investment in local manufacturing by making imports cheaper.

The likes of Tata Motors TAMO.NS and Mahindra & Mahindra MAHM.NS have especially lobbied against lowering import tariffs on EVs, saying it would hurt the nascent sector in which they have invested heavily.

Vowing to avoid protectionist signals on trade, India last month cut import tariffs on nearly 30 items including high-end motorcycles and said it will review surcharges on luxury cars.

(Reporting by Shivangi Acharya and Aditi Shah in New Delhi, additional reporting by Aftab Ahmed; Editing by Alex Richardson)

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** Easing borrowing costs and pick-up in rural economy bodes well for Mahindra & Mahindra Financial Services MMFS.NS in 2025, JP Morgan says

** MMFS last up 3.9%

** Upgrades co to "overweight" from "underweight"; raises PT to 320 rupees from 235 rupees

** Says MMFS's NIMs likely to benefit from easing borrowing costs

** Adds pick-up in tractor/LCV loans, used-vehicles push could further aid margins in 2025

** Diversification into new segments like mortgages/SME could boost loan disbursements near mid-term, but will keep costs elevated - JP Morgan

** Expects credit costs to increase in FY26/27 vs FY25 but higher collection efficiency and contained write-offs could offset - brokerage

(Reporting by Aleef Jahan in Bengaluru)

(([email protected]))

By Ira Dugal

This was originally published in the India File newsletter, which is issued every Tuesday. Sign up here to get latest news from India and how it matters to the world.

Elon Musk's Tesla TSLA.O seems to be nudging closer to selling its electric vehicles (EVs) in India, unnerving its automakers. How much of a headache will Tesla be for Indian automakers? That's the focus of our analysis this week.

Also, Indian insurers may pitch for a one-of-its-kind charge linked to New Delhi's air pollution. And the central bank announces a mega cash infusion to ease rates. Scroll down for more on both those stories.

This week in Asia

** Trump orders use of CFIUS to restrict Chinese investments in strategic areas

** Bangladesh and Pakistan resume direct trade after more than 50 years

** Bank of Korea resumes rate cuts as economic risks grow

** OpenAI removes users in China, North Korea suspected of malicious activities

** DBS set to cut 4,000 jobs over 3 years due to AI, CEO says

Namaste India

Tesla is getting ready to hit Indian streets.

The company has selected showrooms in New Delhi and Mumbai and is stepping up hiring plans. Signs that Musk is fast-tracking plans to enter the country come shortly after his meeting with Prime Minister Narendra Modi in Washington earlier this month.

If Musk pushes ahead with his plans to enter India, automakers, who are already struggling with pockets of weak demand and intensifying competition, will have one more battle to fight - holding on to their better-off customers.

Passenger vehicle sales in India grew 4% in 2024, the slowest in four years, industry data showed. And EVs, where many automakers have focused their new launches expecting a consumer shift, have seen patchy demand because of high prices and an inadequate charging network.

Musk has long delayed plans to sell his EVs in India, partly due to the high import duties of nearly 100% that the country levies on them. While that is yet to change, India is reviewing import duties across a number of categories, under the threat of reciprocal tariffs by the United States.

Musk's close relationship with U.S. President Donald Trump may allow him to wrangle some concessions without giving India what it really wants – for Tesla to manufacture in India. Trump has already made his dislike for that idea public, saying it would be "unfair" to the U.S. for Musk to manufacture in India to avoid paying the high levies placed on imported vehicles.

Read this BreakingViews piece by Shritama Bose to understand why Musk is not India's ideal foreign investor.

Technology vs pricing

Tesla's impending entry hit shares of major Indian automakers on Friday. Mahindra and Mahindra MAHM.NS slid 6.2%, while Tata Motors TAMO.NS and Hyundai Motor India HYUN.NS dropped 2.5% and 3.5%, respectively.

Both Mahindra and Tata Motors have previously lobbied against a cut in import taxes on EVs.

Analysts differ on just how much of a dent Tesla can make in the incumbents' market positions in India.

Citi believes Tesla's technology will give it an edge.

Tesla and China's BYD 002594.SZ – which is also expanding its offerings in India – have access to proven technology and manufacturing processes, which will offset the advantages of the incumbents including their wide sales and service networks, said Citi in a February 21 note.

The "hegemony" that local automakers have enjoyed in combustion engine cars has led to many foreign automakers meeting with limited local success in India but that may not hold in EVs, Citi said.

CLSA, though, feels Tesla's tech advantage will be taken away by its pricing.

With various taxes and the import levies, the cheapest Teslas, priced at $35,000 in the U.S., could be sold at around 3.5 million Indian rupees ($40,377). That is almost three times the 1.2-million-rupee average selling price of cars in India.

About two-thirds of the EVs sold are priced under 2 million rupees, according to an estimate from Macquarie Research.

"Factors such as spacious interiors, features, aesthetics, better resale value visibility and right pricing are the key drivers in car purchase decisions, regardless of the powertrain, in our view," CLSA said in a February 21 note.

Will Tesla leave existing brands in the rear view mirror? Write to me with your views at [email protected].

Quote of the week

"We have to start thinking about pollution as a separate factor in the pricing (of insurance) in the sense that can we then start executing a particular charge for the areas which are impacted by it?"

Amitabh Jain, the operating chief of Star Health STAU.NS, India's No.1 standalone health insurer, is among industry executives pitching for an increase in health insurance premiums for New Delhi, which has seen toxic air year after year.

The pollution has led to more Delhi residents seeking treatment for asthma, chronic obstructive pulmonary disease (COPD) and cardiovascular conditions in 2024, higher than in any prior year, insurers are arguing.

Read that Reuters exclusive here.

Market matters

The Indian central bank announced a mega $10 billion forex swap as a way to infuse cash into the Indian banking system.

The swap followed large dollar sales from the central bank to protect the rupee, which in turn had withdrawn rupee liquidity from the banking system, hurting the central bank's effort to bring down interest rates and lift growth.

The central bank had infused liquidity worth 3.6 trillion Indian rupees over the past five weeks but analysts had said more will be needed.

Short-term bond yields and the forward premium on the rupee fell in response to the RBI's swap.

($1 = 86.6840 Indian rupees)

(Reporting by Ira Dugal; Editing by Muralikumar Anantharaman)

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

MUMBAI, Feb 25 (Reuters) - India's M&M Financial Services MMFS.NS plans to raise 5 billion rupees ($57.63 million), including a greenshoe option of 2 billion rupees, through a sale of bonds maturing in 10 years, three bankers said on Tuesday.

It has invited coupon and commitment bids for the issue on Tuesday, they said.

Here is the list of deals reported so far on February 25:

* Size includes base plus greenshoe for some issues

($1 = 86.7550 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Varun H K)

(([email protected]))

Repeats for Indian morning readership, no change to text.

By Aditi Shah

NEW DELHI, Feb 21 (Reuters) - India's EV policy, which offers import tax cuts for foreign automakers investing in the country, will restrict them from using funds spent on charging infrastructure for such relief, increasing their car manufacturing, a government document shows.

India last year announced a policy aimed at attracting Tesla TSLA.O to manufacture EVs in the country and let such foreign carmakers import cars at a 15% tariff, from around 100% now, but only if they invest at least $500 million for a factory.

But the policy will mandate that automakers can count only 5% of their total EV investment as coming from creation of charging infrastructure, even if they spend much more on the power network, according to government document detailing draft rules which is not public but was seen by Reuters.

The government's plan comes just as Tesla gets closer to entering India with imported cars, having finalised two locations for showrooms. The restriction could upset those automakers who may want to invest a bigger chunk of their planned India investments into creating charging networks, which remain far and few in India.

An industry source privy to discussions with the government said the call is being taken as New Delhi wants companies to prioritise manufacturing, and not just charging networks.

In India's nascent EV market, many buyers have shied away from making purchases due to lack of fast chargers.

"Expenditure incurred on charging infrastructure would be considered up to (a) maximum 5% of the committed investment," the 47-page draft document from January 2025 stated.

The government is holding consultations with carmakers and other stakeholders on the draft rules and will finalise them by next month, said a source with direct knowledge of the matter.

India's ministry of heavy industries, which is spearheading the new policy, did not respond to an email seeking comment.

Tesla in a job advert last week said it is also looking for a "charging developer" who would "develop and manage pipeline of new charging" sites, and select locations for deployment.

The EV giant's chief Elon Musk put on hold his manufacturing investment plans for India last year, amid falling electric car sales globally.

Tesla's immediate India plan is to import cars and sell them in India. Musk and U.S. President Donald Trump however have repeatedly said India's tariffs for cars are too high.

The new draft rules said companies which commit to India manufacturing will also need to meet a minimum turnover of $577 million by the end of the fourth year of operation, and $866 million by the fifth year, to be eligible for lower tariffs on up to 8,000 electric cars per year.

If they fail to do so, they will need to pay a penalty of between 1%-3% of the revenue shortfall.

Other foreign automakers like Hyundai 005380.KS, HYUN.NS and Toyota Motor 7203.T have shown interest in making EVs in India at their existing and new factories.

(Reporting by Aditi Shah; editing by David Evans)

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

By Aditi Shah

NEW DELHI, Feb 21 (Reuters) - India's EV policy, which offers import tax cuts for foreign automakers investing in the country, will restrict them from using funds spent on charging infrastructure for such relief, increasing their car manufacturing, a government document shows.

India last year announced a policy aimed at attracting Tesla TSLA.O to manufacture EVs in the country and let such foreign carmakers import cars at a 15% tariff, from around 100% now, but only if they invest at least $500 million for a factory.

But the policy will mandate that automakers can count only 5% of their total EV investment as coming from creation of charging infrastructure, even if they spend much more on the power network, according to government document detailing draft rules which is not public but was seen by Reuters.

The government's plan comes just as Tesla gets closer to entering India with imported cars, having finalised two locations for showrooms. The restriction could upset those automakers who may want to invest a bigger chunk of their planned India investments into creating charging networks, which remain far and few in India.

An industry source privy to discussions with the government said the call is being taken as New Delhi wants companies to prioritise manufacturing, and not just charging networks.

In India's nascent EV market, many buyers have shied away from making purchases due to lack of fast chargers.

"Expenditure incurred on charging infrastructure would be considered up to (a) maximum 5% of the committed investment," the 47-page draft document from January 2025 stated.

The government is holding consultations with carmakers and other stakeholders on the draft rules and will finalise them by next month, said a source with direct knowledge of the matter.

India's ministry of heavy industries, which is spearheading the new policy, did not respond to an email seeking comment.

Tesla in a job advert last week said it is also looking for a "charging developer" who would "develop and manage pipeline of new charging" sites, and select locations for deployment.

The EV giant's chief Elon Musk put on hold his manufacturing investment plans for India last year, amid falling electric car sales globally.

Tesla's immediate India plan is to import cars and sell them in India. Musk and U.S. President Donald Trump however have repeatedly said India's tariffs for cars are too high.

The new draft rules said companies which commit to India manufacturing will also need to meet a minimum turnover of $577 million by the end of the fourth year of operation, and $866 million by the fifth year, to be eligible for lower tariffs on up to 8,000 electric cars per year.

If they fail to do so, they will need to pay a penalty of between 1%-3% of the revenue shortfall.

Other foreign automakers like Hyundai 005380.KS, HYUN.NS and Toyota Motor 7203.T have shown interest in making EVs in India at their existing and new factories.

(Reporting by Aditi Shah; editing by David Evans)

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

Recasts with India sales target, EV plans, analyst comment

By Daniel Leussink and Aditi Shah

TOKYO, Feb 20 (Reuters) - Japanese carmaker Suzuki Motor has trimmed its sales target in India, its "most important market", and scaled back its line-up of electric car launches, even as it plans to expand global sales by a third to 4.2 million vehicles by fiscal year 2030.

Suzuki 7269.T expects to sell about 2.5 million cars in India by March 2031, down from an October 2023 target of 3 million, and will launch just four EVs in the country instead of six planned, the company said on Thursday.

The sales cut in India, Suzuki's biggest market by revenue and volumes, comes as local unit Maruti Suzuki MRTI.NS has been losing ground to new, feature-rich cars and SUVs from rivals Tata Motors TAMO.NS and Mahindra & Mahindra MAHM.NS.

The scaleback on EV launches coincides with a slowdown in their sales globally and Tesla's TSLA.O impending entry in India, the world's third-largest car market, where it has finalised locations for its first showroom.

Maruti's share of India's passenger vehicles market is down to 41% from a recent peak of about 51% by March 2020. It had set a market share target of 50% by March 2026 which it now expects to achieve by March 2031.

"The competitive environment is becoming increasingly severe, and the quality of product functions, equipment and services required by customers is increasing," Suzuki said in a presentation laying out its five-year strategy to March 2031.

A shift in buyer preferences in India has brought a steep decline in the sales of small cars, a mainstay for Suzuki, and a rise in the popularity of mid-sized SUVs which the Japanese company has been late in introducing.

Suzuki now plans to beef up its line-up of SUVs in India and expand manufacturing capacity there to 4 million units a year "at appropriate time" from about 2 million. The company had earlier planned to scale up to 4 million units by March 2031.

India is still at the forefront of Suzuki's expansion and will receive 60% of a planned investment of 2 trillion yen ($13 billion) by that date, and will be its production hub for global exports to the Middle East and Africa, including for EVs.

"India is Suzuki's most important market where we are putting the most effort," President Toshihiro Suzuki told a strategy briefing in Tokyo on Thursday.

"The sales situation of BEVs is not favourable, particularly in Europe. This shows that new technologies cannot grow without customer acceptance," he said, adding that Suzuki was working on a mix of technologies including hybrids and bio gas.

Suzuki also said it would target an overall operating profit margin of at least 10% by 2030, up from 9.2% in the past financial year, and aims for revenue of 8 trillion yen by the 2030 financial year, a jump of 49%.

Gaurav Vangaal, an S&P Global analyst in India, said the mid-year plan reflected a strategic recalibration in response to competition and a slowing global approach towards EV transition.

($1=150.1200 yen)

(Reporting by Daniel Leussink in Tokyo and Aditi Shah in New Delhi; Editing by Edwina Gibbs and Clarence Fernandez)

(([email protected]; Twitter: @danielleussink;))

Feb 19 (Reuters) - Mahindra and Mahindra Ltd MAHM.NS:

• MAHINDRA & MAHINDRA - MAHINDRA GROUP AND ANDURIL PARTNER TO DEVELOP AUTONOMOUS MARITIME SYSTEMS AND AI COUNTER-UAS TECH

Further company coverage: MAHM.NS

(([email protected];))

Feb 14 (Reuters) - Mahindra and Mahindra Ltd MAHM.NS:

• MAHINDRA AND MAHINDRA LTD - ELECTRIC ORIGIN SUVS SECURE 84.72 BILLION RUPEES IN BOOKINGS ON DAY 1

Source text: ID:nBSE5XBcw9

Further company coverage: MAHM.NS

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Feb 12 (Reuters) - India's Ashok Leyland ASOK.NS reported a bigger-than-expected third-quarter profit on Wednesday as a rise in exports more than offset sluggish domestic demand for its trucks and buses.

Shares of the Hinduja Group flagship company rose 4.4% after results.

Its standalone profit rose 31.3% to 7.63 billion rupees ($87.83 million) in the three months ended December 31, beating analysts' average estimate of 6.66 billion rupees, according to data compiled by LSEG.

Revenue from operations rose 2.2% to 94.79 billion rupees.

Cost of materials and services, which account for most of the total expenses, fell 2.9%.

For further earnings highlights, click (Full Story)

KEY CONTEXT

Ashok Leyland's exports rose by a third in the quarter. Total sales, however, fell 2.2%, hurt by sluggish capex spending in the country, analysts said.

"Sales in international markets are showing strong growth, and we expect this momentum to accelerate with the launch of new products," Dheeraj Hinduja, executive chairman of the company, said in a statement.

India's overall commercial vehicles sales rose 1.2% in the quarter, helped by a rise in the demand for light commercial vehicles, which forms only around 34% of Ashok Leyland's total sales.

Analysts also said most commodity prices remained stable in the quarter and prices of steel, one of the key raw materials used in the industry, remained soft.

Bigger rival Mahindra & Mahindra MAHM.NS reported a 19% rise in quarterly profit last week, while Tata Motors' TAMO.NS third-quarter profit came in below market expectations.

PEER COMPARISON

* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

OCTOBER-DECEMBER STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 86.8825 Indian rupees

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Sumana Nandy and Saumyadeb Chakrabarty)

(([email protected]; +91 8921483410;))

By Zaheer Kachwala and Jaspreet Singh

BENGALURU, Feb 11 (Reuters) - India's southern state of Karnataka has received investment proposals worth nearly 10 trillion rupees ($115.31 billion), a government spokesperson said, as the country tries to bolster its manufacturing sector and generate jobs in a slowing economy.

The proposed investments would focus on areas such as renewable energy, steel, semiconductors and automobiles, the spokesperson said at the 'Invest Karnataka' event on Tuesday.

To be sure, not all proposals have been confirmed and the government has not provided a timeline for these investments.

The state government aims to implement at least 70% of proposals, up from 40% to 50% after the event's 2022 edition, the New Indian Express newspaper reported last week, citing a state minister.

Companies that have pledged investments included India's Mahindra and Mahindra MAHM.NS and JSW Group, Germany's Bosch BOSH.NS, Japan's Toyota Motor 7203.T and Taiwan-based Foxconn.

Karnataka, which includes the IT hub of Bengaluru, is among the top contributors to India's economy and is a major exporter of software, IT services and manufactured goods.

The investment commitments also come amid New Delhi's push to boost domestic manufacturing and reduce imports as it looks to take advantage of Sino-U.S. tensions that have led companies such as Apple AAPL.O to diversify their manufacturing operations away from China..

Inaugurating the event, Indian Defence Minister Rajnath Singh said India's growing economy and strong consumption make it an investment target, with recent moves like a personal income tax cut set to fuel demand.

The JSW Group, whose business spans industries including cement, steel, paints and energy, will invest 1.2 trillion Indian rupees ($13.84 billion) to expand its operations in the state, Chairman and Managing Director Sajjan Jindal said.

Mahindra, which already has a strong presence in Karnataka, plans to invest nearly 400 billion Indian rupees in the state($4.61 billion) over the next few years, chairman Anand Mahindra said at the event.

($1 = 86.7240 Indian rupees)

(Reporting by Zaheer Kachwala and Jaspreet Singh in Bengaluru; Editing by Tasim Zahid)

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** Mahindra & Mahindra MAHM.NS shares jump 2.3% to record high of 3,270.95 rupees before reversing to a drop of 1.2%

** MAHM reports 19% jump in Q3 profit on robust SUV, tractor sales, which Jefferies says is "Another Solid Quarter"

** Jefferies says M&M could pip Hyundai India HYUN.NS to No. 2 passenger vehicle (PV) maker spot by FY27; Maruti Suzuki MRTI.NS at No. 1

** Notes M&M's PV share has jumped from 5.8% in FY21 to all-time high of 12.8% in 9 months of FY25, and expects recent income tax cut in India to boost sales further, led by SUVs

** Brokerage keeps "buy" rating with Street-high PT of 4,075 rupees

** Avg rating of 34 analysts is also 'buy' and avg PT is 3,485 rupees -LSEG data

** Since Hyundai India listed on Oct 22, it's stock has fallen 4.2%, while #3 Tata Motors TAMO.NS has tumbled ~22%

** In that time, M&M has gained ~6.7%, just under Maruti's gain of 7.2%

(Reporting by Ananta Agarwal in Bengaluru)

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Recasts paragraph 1, adds EV business update in paragraphs 9-12

Feb 7 (Reuters) - Indian automaker Mahindra & Mahindra MAHM.NS reported a 19% rise in quarterly profit on Friday, driven by strong sport utility vehicles sales and said it would separately account and report the low-margin earnings of its electric SUVs from the current quarter.

The 'Scorpio' SUV manufacturer reported a profit of 29.64 billion rupees ($339 million), up from 24.90 billion rupees a year before.

Mahindra is India's top SUV maker by revenue and also leads sales of tractors. Its SUV volume grew 20% in the quarter, as did those of its tractors.

Rising farm incomes have helped boost tractor demand, while surging demand for its 'XUV 3x0' model and a five-door version of its popular 'Thar' SUVs have helped Mahindra sail through an otherwise turbulent year for Indian carmakers.

Its overall volume increased 17% in the quarter, leading revenue 20% higher to 305.38 billion rupees.

The tractor business, while smaller in revenue, is more profitable than Mahindra's automotive business that houses the SUV, trucks, buses and three-wheeler manufacturing businesses.

Higher tractor sales helped boost the operating margin to 15.5% from 14.2%.

Mahindra's consolidated profit, which includes its financial services, IT, hospitality and a handful of other businesses, rose about 20%.

Mahindra will begin to account for its electric vehicle business in its earnings statement from the current January-March quarter, it said.

The separate accounting was necessary to factor in the smaller margins currently earned on EVs, the company added.

The automaker will produce the EVs as a contract manufacturer for Mahindra Electric Automobile Ltd (MEAL), its Temasek-backed EV unit. MEAL will sell the models to dealers.

Bookings for its new electric SUVs – the BE6 and XEV 9E – open on February 14, while deliveries of select variants will start by mid-March. The company currently sells one electric SUV in the market, the XUV400.

Mahindra's shares closed up 1.9%.

($1 = 87.4010 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru; Editing by Eileen Soreng)

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Feb 6 (Reuters) - Ashok Leyland Ltd ASOK.NS:

• INDIA'S FADA: OVERALL AUTO RETAIL GREW BY 6.6% YOY IN JAN

• INDIA'S FADA: PERSISTENT CASH-FLOW CONSTRAINTS, SUBDUED INDUSTRIAL DEMAND COULD CAP UPSIDE POTENTIAL

• INDIA'S FADA: SUPPORTIVE POLICIES, POST-BUDGET STIMULUS MAY HELP SUSTAIN SECTOR’S EARLY-YEAR GAINS

• INDIA'S FADA: ONGOING FESTIVE/WEDDING DEMAND, FRESH PRODUCT INTRODUCTIONS COULD SUSTAIN FOOTFALLS IN NEAR-TERM

• INDIA'S FADA: NEARLY HALF OF DEALERS ANTICIPATE GROWTH IN FEB,43% EXPECT SALES TO STAY FLAT,11% FORESEE DIP

• INDIA'S FADA: AUTO RETAIL SECTOR ENTERS FEBRUARY WITH CAUTIOUS OPTIMISM

Source text: [ID:]

Further company coverage: ASOK.NS

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Feb 5 (Reuters) - Mahindra and Mahindra Ltd MAHM.NS:

• MAHINDRA & MAHINDRA - MAHINDRA ELECTRIC ORIGIN SUVS TO OPEN BOOKINGS FOR 9 VARIANTS ON FEB 14

Source text: [ID:]

Further company coverage: MAHM.NS

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Feb 1 (Reuters) - India's overall car sales to dealers saw a slight increase in January, data released by automakers on Saturday showed, as inflation-wary customers continued to delay purchases.

Domestic sales of India's top four carmakers - which form 80% of the country's car market - rose 1.8% from a year ago, helped by sales of market leader Maruti Suzuki's MRTI.NS small cars and Mahindra & Mahindra's MAHM.NS sports utility vehicles.

Peers Hyundai India HYUN.NS and Tata Motors TAMO.NS saw sales declining 5.5% and 10%, respectively, hurt by increased competition.

WHY IT'S IMPORTANT

Car sales in India, the world's third-largest car market, have slowed after two years of rapid growth as higher inflation has squeezed buyers' pockets.

Higher raw material costs have forced carmakers to raise prices even as they offer discounts to perk up demand.

The government's proposal to slash personal income tax rates in its annual budget on Saturday has raised hopes of a consumption boost in the world's fifth-largest economy, which could possibly entice more people to buy cars.

India's auto index .NIFTYAUTO rallied on the day, settling 1.9% higher.

BY THE NUMBERS

*Exports included

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

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MUMBAI, Jan 31 (Reuters) - India's Mahindra and Mahindra Financial Services MMFS.NS has accepted bids worth 7.05 billion rupees ($81.4 million) for bonds maturing in three years and three months, three bankers said on Friday.

The company will pay an annual coupon of 7.8863% and had invited bids from bankers and investors for the issue earlier in the day, they said.

Here is the list of deals reported so far on Jan. 31:

*Size includes base plus greenshoe for some issues

($1 = 86.6320 Indian rupees)

(Reporting by Dharamraj Dhutia
Editing by Sonia Cheema)

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MUMBAI, Jan 30 (Reuters) - India's Mahindra and Mahindra Financial Services MMFS.NS plans to raise 7.50 billion rupees ($86.64 million), including a greenshoe option of 6 billion rupees, through the sale of bonds maturing in three years and three months, three bankers said on Thursday.

The company has invited bids from bankers and investors for the issue on Friday, they said.

The company did not immediately reply to a Reuters email seeking comment.

Here is the list of deals reported so far on Jan. 30:

*Size includes base plus greenshoe for some issues

($1 = 86.5700 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Mrigank Dhaniwala)

(([email protected]))

Jan 29 (Reuters) - Maruti Suzuki MRTI.NS, India's top carmaker by volumes, reported a smaller-than-expected third-quarter profit on Wednesday, hurt by higher discounts and a dip in small car sales.

The 'Alto' maker's standalone profit rose 12.6% year-on-year to 35.25 billion rupees ($407.34 million) for the quarter ended Dec. 31, but missed analysts' estimates of 36.62 billion rupees, per data compiled by LSEG.

($1 = 86.5375 Indian rupees)

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Sonia Cheema)

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repeats earlier story, no changes

By Aditi Shah

NEW DELHI, Jan 22 (Reuters) - Tata Motors, India's biggest electric car maker, is betting that locally manufactured EV batteries will help it maintain its edge in an industry where competition is intensifying with new launches, its group CFO said in an interview.

Tata's TAMO.NS EV market lead shrunk to 62% in 2024 from 73% a year ago as rival JSW MG Motor gained share with its new cars. This year, Mahindra & Mahindra, Hyundai Motor and market leader Maruti Suzuki will also launch EVs in India. Global EV giant Tesla TSLA.O has long eyed India too.

Tata Group's $1.5 billion initial investment to build a battery gigafactory in India and supply Tata Motors will allow it to further integrate its supply chain, P.B. Balaji, group CFO at Tata Motors, told Reuters.

"The work on the entire ecosystem is something that we have. We will be a dominant player in this market," Balaji said on the sidelines of India's car show last week where EVs from domestic players as well as China's BYD 002594.SZ and Vietnam's Vinfast 0TL.F took centre stage.

Tata, the owner of Britain's iconic Jaguar Land Rover, has EV models ranging from around $10,000 up to $27,000 and draws on other group companies that supply components and set up chargers to keep its investment and costs low.

When Agratas, the battery arm of the $165 billion Tata Group, begins production of lithium-ion battery cells in 2026, Tata Motors will have greater control over the most expensive part of an EV.

"Launching a car is a given but can you sustain it forever? We are backend secured," Balaji said, adding that production at the plant in western Gujarat will be at "full blast" in 2028.

New entrants Mahindra MAHM.NS, Maruti MRTI.NS and Hyundai 005380.KS, HYUN.NS do not have a similar integrated supply chain and will source batteries and other parts from suppliers in the market.

Tata Motors is also well funded to withstand a competitive market, Balaji said. It has received $1 billion in funding from U.S. private equity firm TPG and is a beneficiary of India's incentive program for EVs under which it hopes to get about $750 million over the next four years. The first tranche of $17 million has come in, Balaji said.

"There is enough and more money. The full TPG monies have come in, the business is well funded and as battery prices start coming off, most of it starts self-funding," he said.

EV sales in India made up just 2.5% of the 4.3 million cars sold in the country in 2024, but their 20% growth rate outpaced the 5% overall car market growth. Analysts expect EV sales to double in 2025 from 100,000 last year, mainly due to new launches.

Electric models made up about 12% of Tata Motors' 2024 car sales and it wants to grow this to 30% by 2030, it has said.

(Reporting by Aditi Shah, additional reporting by Nandan Mandayam;Editing by Elaine Hardcastle)

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

By Aditi Shah

NEW DELHI, Jan 22 (Reuters) - Tata Motors, India's biggest electric car maker, is betting that locally manufactured EV batteries will help it maintain its edge in an industry where competition is intensifying with new launches, its group CFO said in an interview.

Tata's TAMO.NS EV market lead shrunk to 62% in 2024 from 73% a year ago as rival JSW MG Motor gained share with its new cars. This year, Mahindra & Mahindra, Hyundai Motor and market leader Maruti Suzuki will also launch EVs in India. Global EV giant Tesla TSLA.O has long eyed India too.

Tata Group's $1.5 billion initial investment to build a battery gigafactory in India and supply Tata Motors will allow it to further integrate its supply chain, P.B. Balaji, group CFO at Tata Motors, told Reuters.

"The work on the entire ecosystem is something that we have. We will be a dominant player in this market," Balaji said on the sidelines of India's car show last week where EVs from domestic players as well as China's BYD 002594.SZ and Vietnam's Vinfast 0TL.F took centre stage.

Tata, the owner of Britain's iconic Jaguar Land Rover, has EV models ranging from around $10,000 up to $27,000 and draws on other group companies that supply components and set up chargers to keep its investment and costs low.

When Agratas, the battery arm of the $165 billion Tata Group, begins production of lithium-ion battery cells in 2026, Tata Motors will have greater control over the most expensive part of an EV.

"Launching a car is a given but can you sustain it forever? We are backend secured," Balaji said, adding that production at the plant in western Gujarat will be at "full blast" in 2028.

New entrants Mahindra MAHM.NS, Maruti MRTI.NS and Hyundai 005380.KS, HYUN.NS do not have a similar integrated supply chain and will source batteries and other parts from suppliers in the market.

Tata Motors is also well funded to withstand a competitive market, Balaji said. It has received $1 billion in funding from U.S. private equity firm TPG and is a beneficiary of India's incentive program for EVs under which it hopes to get about $750 million over the next four years. The first tranche of $17 million has come in, Balaji said.

"There is enough and more money. The full TPG monies have come in, the business is well funded and as battery prices start coming off, most of it starts self-funding," he said.

EV sales in India made up just 2.5% of the 4.3 million cars sold in the country in 2024, but their 20% growth rate outpaced the 5% overall car market growth. Analysts expect EV sales to double in 2025 from 100,000 last year, mainly due to new launches.

Electric models made up about 12% of Tata Motors' 2024 car sales and it wants to grow this to 30% by 2030, it has said.

(Reporting by Aditi Shah, additional reporting by Nandan Mandayam;Editing by Elaine Hardcastle)

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

By Nick Carey, European Autos Correspondent

Greetings from London!

The biggest news so far this week is something that didn’t happen. Donald Trump did not, as he had promised, follow through with wide-ranging tariffs, particularly on Canada. Mexico and China.

This is Trump’s tried and tested modus operandi. Threaten tariffs – or something else – to use as leverage to get what he wants, in this case presumably more U.S. auto investments with eye-catching job numbers and declare victory.

Trump now says tariffs could come as soon as Feb. 1, hitting Asian car stocks and leading Volkswagen to warn of the “harmful economic impact” border duties would have, driving up car prices for U.S. consumers and hurting the global car industry.

Behind the scenes, automakers are busy talking to Trump’s administration to find out what he wants. Stellantis chairman John Elkann, laser focused as ever on the company’s fortunes, has spent four days talking to Trump and top officials in Washington to do just that.

Which brings us to today’s Auto File…

• Germany’s old car plants for China?

• A ton of EVs for India

• Profits still distant for Polestar

China shopping for old German car plants

The Chinese government and automakers are shopping around for German car factories slated for closure and are particularly interested in potentially bringing a fresh lease of life to Volkswagen's old plants, according to an exclusive from my Reuters colleagues John O’Donnell and Victoria Waldersee. You can read about it here.

According to a person with knowledge of Chinese government thinking, buying a disused factory would allow China to build influence in Germany's auto industry, home to some of the oldest and most prestigious car brands.

Building cars in Germany for sale in Europe would allow China's EV makers to avoid paying EU tariffs on electric cars imported from China and could pose a further threat to European manufacturers' competitiveness.

Investment decisions are likely to hinge on the new German government's stance towards China after an election in February.

Investing in Germany would be a departure for the Chinese, who have so far focused on production in low-cost markets, such as Spain or Hungary. Given its far higher labour and energy costs, setting up shop in an old German car assembly plant would be more of a political decision than a business one.

Recommended reading:

• Aramco: lithium project “promising”

• Car plant closures coming in 2025

• Biden’s $1 billion for ioneer lithium project

India’s EV bonanza

Despite a slowdown in EV demand, automakers operating in India plan a dozen new electric models this year, many in the premium market with longer driving ranges and faster charging times as they seek to lure buyers.

As my Reuters colleagues Aditi Shah and Mandan Mandayam report, EVs were front and center at India’s car show that started on Friday, with models from new Vietnamese entrant Vinfast , Maruti Suzuki, Mahindra & Mahindra , BYD, Toyota and Hyundai all vying for consumers’ attention. You can read all about it here.

India's EV market is small, with electric models making up about 2.5% of the 4.3 million cars sold in 2024 as high prices and a patchy charging network put off prospective buyers.

However, EV sales in India rose 20% in 2024 to about 100,000 units, outpacing overall car market growth of 5%.

Auto executives say new EVs with longer ranges and faster charging times could lift demand and analysts predict EV sales in India could double this year.

Polestar’s profitability postponed

Polestar had hoped to be profitable this year, but now says that it will only happen in 2027. As my colleagues Akash Sriram and Marie Mannes report, the EV maker is also slowing its roll into new markets and considering a reverse stock split to keep it out of Nasdaq’s bad books. You can read about it here.

This comes after Polestar appointed industry veteran Michael Lohscheller as CEO and several other new executives last year to improve the struggling company’s fortunes.

As we may have mentioned a few times before on the Auto File (okay, yes, we say it a lot), it has been a long, bumpy – and for many, impossibly steep – road for EV startups trying to mass produce cars and survive in a bare knuckle business where scale is key.

Case in point, just last week erstwhile Tesla wannabe Canoo said it would file for bankruptcy and cease operations immediately, a far cry from its $2.4 billion SPAC listing in 2021.

Polestar is backed by China’s Geely, which has deep pockets, so it can still get funding where the likes of Canoo could not. But presumably Geely cannot keep on bankrolling a lossmaking venture forever, so Polestar is under a lot of pressure to start making money by 2027.

China’s cash for clunkers

China’s subsidies for car sales will continue as the government tries to boost flagging economic growth, with an extension to a “cash-for-clunkers” program that helped lift sales in 2024.

Car sales in China grew 5.3% to 23.1 million units in 2024, compared to the tepid 0.9% growth reported for Europe.

With additional support for its auto industry in 2025, watch for China’s car sales to continue outpacing Europe’s.

Fast Laps

Chinese EV maker BYD aims to complete its $1 billion plant in Indonesia at the end of 2025, the head of its local unit said, underscoring the firm's aim to compete against Japanese automakers that currently dominate the market.

Chinese Vice President Han Zheng met Tesla CEO Elon Musk and other members of the U.S. business community in Washington ahead of Trump's inauguration, saying he hopes U.S. companies would "take root" in China and help stabilize bilateral relations.

General Motors signed a multi-year, multi-billion-dollar agreement for Norway's Vianode to provide synthetic graphite anode materials for EV batteries made by the Ultium Cells joint venture between GM and LG Energy Solution.

Renault's low-cost Dacia brand will launch more EV models in the future, starting with the next Sandero around the end of 2027, brand CEO Denis Le Vot said.

The U.S. Equal Employment Opportunity Commission sued General Motors and the United Auto Workers accusing them of age discrimination and Stellantis for allegedly subjecting female employees to sexual harassment.

Think your friend or colleague should know about us? Forward this newsletter to them. They can also subscribe here.

(Editing by Tomasz Janowski)

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CORRECTS production scale-up in paragraph 7 to 150,000 units, not 250,000 units

By Nandan Mandayam and Aditi Shah

NEW DELHI, Jan 17 (Reuters) - Vietnamese electric vehicle maker VinFast 0TL.F will enter the Indian market with two premium electric SUVs, taking on homegrown rival Mahindra & Mahindra and China's BYD, which already has a presence in the world's third largest car market.

VinFast unveiled its VF6 and VF7 SUVs at the India Auto Show in New Delhi, as it hopes to draw buyers to its EVs and contribute to India's goals of eliminating carbon emissions on a net basis, said Pham Sanh Chau, VinFast's Asia CEO.

"We are turning our focus to India - our next growth frontier," Chau told reporters.

Nasdaq-listed VinFast counts North America and Vietnam as its primary markets but is trying to expand aggressively elsewhere. But the automaker has been reporting deepening losses as EV demand softens.

Electric models accounted for about 2.5% of the more than 4 million vehicles sold in India last year. The government, targeting 30% by 2030, is working on a programme to attract EV makers.

VinFast said last year it would invest $500 million in India over five years to build a car and battery factory, now under construction in the southern state of Tamil Nadu, and launch new car models.

The factory will have an initial capacity of 50,000 cars a year and can be scaled up to 150,000 based on demand, Chau said, adding the company is appointing dealers in India and studying investments in setting up charging infrastructure.

Like Tesla TSLA.O, VinFast has sought a reduction from the Indian government on the 100% import tax on fully built EVs to allow it to launch cars while its factory comes online. The move has been opposed by domestic automakers.

(Reporting by Nandan Mandayam and Aditi Shah in New Delhi; Editing by William Mallard)

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

Recasts to add details of EV plans by Hyundai and Tata Motors

By Aditi Shah and Nandan Mandayam

NEW DELHI, Jan 17 (Reuters) - Hyundai HYUN.NS, Maruti Suzuki MRTI.NS and Tata Motors TAMO.NS used the India auto show to unveil ambitious plans to expand their electric vehicle charging network to address the issues that are putting customers off making the switch.

The five-day auto show in New Delhi starting on Friday saw carmakers show off their new EVs and India's Prime Minister Narendra Modi make a case for more investment in the world's third-biggest market, where automakers are desperately trying to increase sales and where Tesla TSLA.O has long-delayed its plans to enter.

Fuel-guzzling cars still dominate India's roads, with EV sales rising, but still accounting for just 2.5% of annual sales.

Maruti Suzuki on Friday announced plans to install fast charging points in India's top 100 cities - one every 5-10 kilometres (3.1-6.2 miles) - and consider launching a battery rental service, while Tata Motors and Hyundai said they will set up 500 and 600 public chargers, respectively.

Maruti also announced plans to expand the charging network in cities and provide roadside assistance all over India if a battery runs out.

Anxiety over batteries draining without a charging spot nearby is a big issue for customers in the country.

"We will leverage our vast network to provide fast charging support," Maruti CEO Hisashi Takeuchi said at the show, where it also launched its first EV - the e Vitara SUV.

Maruti is also considering a battery rental service to address what many view as a major obstacle to EV adoption in India.

The move comes after India's Tata Motors TAMO.NS last year started luring consumers with free charging and steep discounts, while rival MG Motor also launched a battery rental plan.

At the New Delhi auto show, electric vehicles will be centre stage, with models from Vietnamese entrant Vinfast 0TL.F on display, alongside domestic brands Maruti and Mahindra & Mahindra MAHM.NS, as well as global rivals BYD 002594.SZ, Toyota 7203.T and Hyundai 005380.KS.

Modi courted investors by saying the government was willing to provide support for companies seeking to expand in the nation.

"This is the right time for you for a large investment in this sector," he said.

India's auto industry, which grew by about 12% last year, will expand further as a result of factors including its large youth population and rapid urbanisation, Modi said.

But there have been challenges. India plans to expand EV incentives to automakers and relax its policy which was originally designed following lobbying by Tesla, which has still not entered the market, Reuters reported in November.

(Additional reporting by Kashish Tandon and Sakshi Dayal; Writing by Indranil Sarkar and Aditya Kalra; Editing by Kate Mayberry, Ros Russell and Louise Heavens)

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Adds graphic on slowing EV sales growth

By Aditi Shah and Nandan Mandayam

NEW DELHI, Jan 16 (Reuters) - Automakers operating in India plan to launch close to a dozen new electric car models this year, many in the premium market, with longer driving ranges and faster charging times, to attract buyers as demand for EVs slows down globally.

Electric cars will take centre stage at India's five-day auto show in New Delhi starting Friday with models from new Vietnamese entrant Vinfast 0TL.F shown alongside domestic brands Maruti Suzuki MRTI.NS and Mahindra & Mahindra MAHM.NS as well as global rivals BYD 002594.SZ, Toyota 7203.T and Hyundai 005380.KS.

India's EV market leaders Tata Motors TAMO.NS and JSW-MG Motor, part-owned by China's SAIC Motor 600104.SS, will showcase an expanded line-up in the world's third-largest car market where tighter emission norms starting from 2027 are forcing a move to cleaner cars.

India's EV market is small, with electric models making up about 2.5% of the 4.3 million cars sold in 2024 as high prices and a patchy charging network hold back buyers.

The government wants to grow this to 30% by 2030.

Globally, electric car sales growth slowed to 13% in 2024 from a year ago but crossed 10 million units for the first time, according to data from research firm RhoMotion.

While EV sales growth in India is also slowing, rising 20% in 2024 from a year ago to about 100,000 units, it outpaced the overall car market growth of 5% over the same period.

Auto industry executives say new models with longer ranges and faster charging times could lift demand, with analysts forecasting electric car sales in India to double this year.

The first EVs in India, mostly from market leader Tata Motors, were gasoline cars converted to electric, delivering a range of up to 300 kilometres (186 miles) on a single charge, which many found inadequate for inter-city journeys.

The majority of new launches are designed as EVs from the start at a minimum range of 400 km. Some automakers, such as Mahindra, are offering more than 600 km and fast charging from 20%-80% in under 20 minutes.

Mahindra's two electric SUV launches for this year are priced at $22,000 to $35,000. The average price of a car in India is around $12,000, with more expensive models growing at a faster pace than affordable ones.

EV maker VinFast, which is building a car factory in southern India, will display its mini-SUV VF3, a three-row MPV, the VF9, among others.

"India's burgeoning middle class, coupled with strong government incentives to promote EV adoption, makes it a natural focus for VinFast's global expansion," the carmaker said.

South Korea's Hyundai HYUN.NS will showcase the India-built electric version of its popular Creta SUV, which it hopes will help take on rivals, while BYD will display its Sealion 7 electric SUV.

Maruti, India's largest carmaker by sales, will display its first EV, the e Vitara SUV which will launch later this year. The car has been jointly developed by Maruti's parent Suzuki Motor 7269.T and Toyota.

Some carmakers also plan to show other clean fuel technologies such as plug-in hybrid cars, flex-fuel models, hydrogen fuel cell vehicles and gas-based cars alongside EVs.

"The path to a faster electric takeoff really works better if you have all electrified vehicles being encouraged in a proportionate manner," said Vikram Gulati, country head and executive vice president for corporate affairs and governance at Toyota's India unit.

(Reporting by Aditi Shah, Editing by Louise Heavens)

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