MARUTI

March 21 (Reuters) - Mahindra and Mahindra MAHM.NS will increase prices of its SUVs and other commercial vehicles by up to 3% from April, the company said on Friday, becoming the latest Indian carmaker to raise prices to combat rising costs.

Already, market leader Maruti Suzuki MRTI.NS, Tata Motors TAMO.NS and Hyundai Motor India HYUN.NS have said they will hike prices between 2% and 4% from next month.

These higher expenses are due to rising commodity prices, elevated import duties on raw materials and supply chain disruptions.

Mahindra and Mahindra said its price increases will vary depending on the model of the vehicle.

(Reporting by Ananta Agarwal in Bengaluru; Editing by Savio D'Souza)

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Adds details, background from paragraph 2 onwards

March 19 (Reuters) - Hyundai Motor India HYUN.NS, the country's No.2 carmaker by market share, will increase prices by up to 3% from April due to higher raw material and operational costs, it said on Wednesday.

The price hike will vary depending on the model, the company said.

Earlier this week, Maruti Suzuki MRTI.NS and Tata Motors TAMO.NS also raised the prices of their cars, citing rising input and operational expenses.

This is Hyundai's second price hike since its initial public offering (IPO) in October. It raised prices by up to 25,000 rupees ($289.62) across models in December.

Indian automakers are seeing higher costs due to rising commodity prices, elevated import duties on raw materials, and supply chain disruptions.

($1 = 86.3190 Indian rupees)

(Reporting by Manvi Pant in Bengaluru; Editing by Mrigank Dhaniwala and Sonia Cheema)

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Recasts paragraph 1 with Tata Motors price hike, adds details throughout

March 17 (Reuters) - Automakers Tata Motors TAMO.NS and Maruti Suzuki India MRTI.NS said on Monday that they will increase the prices of vehicles to offset raw material and operational costs.

Tata Motors will hike prices of its commercial vehicles, including trucks and buses, by up to 2% from April, while Maruti Suzuki said it will increase car prices by as much as 4% next month.

The price bumps will vary depending on the model, the companies said.

Indian automakers are seeing higher costs due to rising commodity prices, elevated import duties on raw materials, and supply chain disruptions.

Tata Motors last increased prices of its commercial vehicles up to 2% in January.

Maruti's price hike follows a 4% increase in December, which took effect in January.

Maruti had also raised prices by 1,500 rupees ($17.29) to 32,500 rupees for several models last month.

($1 = 86.7740 Indian rupees)

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

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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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Feb 25 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:

• COMMISSIONS PHASE I OF KHARKHODA FACILITY

• COMMENCES COMMERCIAL PRODUCTION AT KHARKHODA FACILITY

• COMMISSIONED PHASE I OF MANUFACTURING FACILITY WITH CAPACITY OF 250,000 UNITS PER ANNUM

Source text: ID:nBSE8ZCJjQ

Further company coverage: MRTI.NS

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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))

** Shares of carmaker Maruti Suzuki India MRTI.NS fall as much as 2.3% to 12,395 rupees, set for worst day since October 29 2024

** MRTI top percentage loser on both Nifty 50 index .NSEI and Nifty auto index .NIFTYAUTO

** Parent Suzuki Motor 7269.T said it expects to launch 4 battery electric vehicles (EV) in India by fiscal 2030, scaling back a previous goal of rolling out six nL2N3PB028

** Adds, co aims for 50% market share as market leader in Indian automobile industry from the current ~40%

** Analysts' mean rating on stock is 'buy', same as rivals Tata Motors TAMO.NS, Mahindra and Mahindra MAHM.NS and Hyundai Motor India HYUN.NS; MRTI's median PT is 14,024 rupees - data compiled by LSEG

** MRTI rises 16.8% YTD, compared to 4.2% fall in Nifty auto index

(Reporting by Meenakshi Maidas in Bengaluru)

(([email protected];))

This is a repeat of an item issued on Wednesday

By Aditya Kalra, Aditi Shah and Nikunj Ohri

NEW DELHI, Feb 12 (Reuters) - India's demand for back taxes running into a record $1.4 billion from Volkswagen, after 12 years of scrutiny, is reigniting concerns that lengthy investigations and litigation could sour the plans of foreign firms in the fastest-growing major economy.

Automakers such as Maruti Suzuki MRTI.NS, Hyundai 005380.KS, Honda 7267.T and Toyota 7203.T face demands for about $6 billion collectively in disputes on income-tax, customs and other payments that go back years, a Reuters analysis shows.

Although Prime Minister Narendra Modi has been courting foreign investors with promises to simplify regulations and uproot bureaucratic hurdles, lengthy tax investigations remain a sore point, often triggering lawsuits that stretch over years.

In one high-profile incident, telecoms company Vodafone won its case against a $2-billion retrospective Indian tax demand after more than a decade of legal battles with New Delhi, including international arbitration at the Hague.

Now, Volkswagen's move on January 29 to sue India for $1.4 billion in tax that the firm called "impossibly enormous" is making foreign companies jittery.

Tax advisers and lawyers say they are fielding nervous queries from clients about how years-old tax cases could come back to haunt them.

Calls are also growing for an amnesty scheme for cases running for years, as India set a three-year window on February 1 to conclude reviews of customs shipments, but the rule excludes old disputes running into billions of dollars.

"The government clearly recognised this now and redressed it, but it is unlikely old tax demand notices will be given any benefit," said Ameya Dadhich, a tax associate at global law firm DLA Piper.

"Such instances can deter foreign companies from investing heavily in India," he added. "An amnesty scheme will be helpful given that around 40,000 tariff disputes are pending."

India's finance ministry did not respond to queries from Reuters.

Modi wants to turn India into a manufacturing hub, but many electronic and auto companies rely on assembly operations using parts for high-end cars or smartphones imported from markets such as China and Europe, often spurring investigations.

Government data shows total pending arrears of service tax, customs and excise levies stood at nearly $53 billion in November 2024, with a whopping 70% disputed in litigation.

In the category of import tariff, or customs disputes alone, India had made tax demands of $4.5 billion by March 2024, with a third of those pending for more than five years.

One tax adviser and a lawyer for a foreign automaker in India said the Volkswagen news sparked a flurry of calls from companies to gather updates on scrutiny of their shipments, to ensure their imports are classified correctly for tax.

TAX BACKLOG

In a move seen as aimed at placating U.S. President Donald Trump, who once called India a "tariff king", New Delhi cut average tariffs on February 1 to 11% from 13%, though they still exceed those of China, Japan and the United States.

Imports of fully built luxury cars face Indian taxes and levies of about 100%, while the rate is 150% for Scotch whisky and wine.

In the highly competitive auto sector, Volkswagen VOWG_p.DE is not alone in facing tax scrutiny.

Maruti has $2.4 billion of tax demands in dispute, with at least one case concerning transactions from 1986. Volkswagen is locked in tussles over $1.2 billion, apart from the most recent demand, while Hyundai faces $488 million in such demands.

India's appeals tribunal for customs, excise and service tax faced a backlog of 80,000 cases, Sanjay Malhotra, then the revenue secretary, said in 2023. With about 20,000 new cases each year, he said, "We are not able to reduce the backlog."

In the case of Volkswagen, New Delhi accuses it of having imported most parts of 14 models in separate shipments before assembling them locally, paying tax ranging from 5% to 15%.

That strategy circumvented the tax of 30% to 35% payable if the same items were imported in a single shipment as a completely knocked down (CKD) unit.

In its court filing to be heard this month in the financial capital of Mumbai, Volkswagen is blaming Indian officials for their "inaction and tardiness" in taking years to review shipment records, some stretching back to 2012.

Had New Delhi wrapped up its reviews earlier, Volkswagen says, it could have challenged the move or re-evaluated its import strategy, but the tax notice now puts "at peril the very foundation of faith and trust" foreign investors desire.

Two government officials who spoke on condition of anonymity said the slowness of Indian bureaucracy and a lack of adequate documentation from Volkswagen both contributed to the delay.

"Long pendency like in Volkswagen's case has a detrimental effect on business," said Shashi Mathews, head of indirect tax practice at Indian law firm, IndusLaw.

"We are seeing an increase in queries from clients wanting to know the fate of their shipment reviews."

(Reporting by Aditi Shah, Nikunj Ohri and Aditya Kalra; Additional reporting by Arpan Chaturvedi; Editing by Clarence Fernandez)

((Email: [email protected]; X: @adityakalra;))

By Aditya Kalra, Aditi Shah and Nikunj Ohri

NEW DELHI, Feb 12 (Reuters) - India's demand for back taxes running into a record $1.4 billion from Volkswagen, after 12 years of scrutiny, is reigniting concerns that lengthy investigations and litigation could sour the plans of foreign firms in the fastest-growing major economy.

Automakers such as Maruti Suzuki MRTI.NS, Hyundai 005380.KS, Honda 7267.T and Toyota 7203.T face demands for about $6 billion collectively in disputes on income-tax, customs and other payments that go back years, a Reuters analysis shows.

Although Prime Minister Narendra Modi has been courting foreign investors with promises to simplify regulations and uproot bureaucratic hurdles, lengthy tax investigations remain a sore point, often triggering lawsuits that stretch over years.

In one high-profile incident, telecoms company Vodafone won its case against a $2-billion retrospective Indian tax demand after more than a decade of legal battles with New Delhi, including international arbitration at the Hague.

Now, Volkswagen's move on January 29 to sue India for $1.4 billion in tax that the firm called "impossibly enormous" is making foreign companies jittery.

Tax advisers and lawyers say they are fielding nervous queries from clients about how years-old tax cases could come back to haunt them.

Calls are also growing for an amnesty scheme for cases running for years, as India set a three-year window on February 1 to conclude reviews of customs shipments, but the rule excludes old disputes running into billions of dollars.

"The government clearly recognised this now and redressed it, but it is unlikely old tax demand notices will be given any benefit," said Ameya Dadhich, a tax associate at global law firm DLA Piper.

"Such instances can deter foreign companies from investing heavily in India," he added. "An amnesty scheme will be helpful given that around 40,000 tariff disputes are pending."

India's finance ministry did not respond to queries from Reuters.

Modi wants to turn India into a manufacturing hub, but many electronic and auto companies rely on assembly operations using parts for high-end cars or smartphones imported from markets such as China and Europe, often spurring investigations.

Government data shows total pending arrears of service tax, customs and excise levies stood at nearly $53 billion in November 2024, with a whopping 70% disputed in litigation.

In the category of import tariff, or customs disputes alone, India had made tax demands of $4.5 billion by March 2024, with a third of those pending for more than five years.

One tax adviser and a lawyer for a foreign automaker in India said the Volkswagen news sparked a flurry of calls from companies to gather updates on scrutiny of their shipments, to ensure their imports are classified correctly for tax.

TAX BACKLOG

In a move seen as aimed at placating U.S. President Donald Trump, who once called India a "tariff king", New Delhi cut average tariffs on February 1 to 11% from 13%, though they still exceed those of China, Japan and the United States.

Imports of fully built luxury cars face Indian taxes and levies of about 100%, while the rate is 150% for Scotch whisky and wine.

In the highly competitive auto sector, Volkswagen VOWG_p.DE is not alone in facing tax scrutiny.

Maruti has $2.4 billion of tax demands in dispute, with at least one case concerning transactions from 1986. Volkswagen is locked in tussles over $1.2 billion, apart from the most recent demand, while Hyundai faces $488 million in such demands.

India's appeals tribunal for customs, excise and service tax faced a backlog of 80,000 cases, Sanjay Malhotra, then the revenue secretary, said in 2023. With about 20,000 new cases each year, he said, "We are not able to reduce the backlog."

In the case of Volkswagen, New Delhi accuses it of having imported most parts of 14 models in separate shipments before assembling them locally, paying tax ranging from 5% to 15%.

That strategy circumvented the tax of 30% to 35% payable if the same items were imported in a single shipment as a completely knocked down (CKD) unit.

In its court filing to be heard this month in the financial capital of Mumbai, Volkswagen is blaming Indian officials for their "inaction and tardiness" in taking years to review shipment records, some stretching back to 2012.

Had New Delhi wrapped up its reviews earlier, Volkswagen says, it could have challenged the move or re-evaluated its import strategy, but the tax notice now puts "at peril the very foundation of faith and trust" foreign investors desire.

Two government officials who spoke on condition of anonymity said the slowness of Indian bureaucracy and a lack of adequate documentation from Volkswagen both contributed to the delay.

"Long pendency like in Volkswagen's case has a detrimental effect on business," said Shashi Mathews, head of indirect tax practice at Indian law firm, IndusLaw.

"We are seeing an increase in queries from clients wanting to know the fate of their shipment reviews."

(Reporting by Aditi Shah, Nikunj Ohri and Aditya Kalra; Additional reporting by Arpan Chaturvedi; Editing by Clarence Fernandez)

((Email: [email protected]; X: @adityakalra;))

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

(([email protected];;))

By Nikunj Ohri, Aditya Kalra and Aditi Shah

NEW DELHI, Feb 5 (Reuters) - India has accused South Korea's Kia of evading taxes of $155 million by misclassifying component imports but the carmaker has denied wrongdoing, the latest fight by a foreign automaker with New Delhi over tariffs, according to a document and two sources.

Kia competes with Hyundai 005380.KS and Maruti Suzuki MRTI.NS in the world's third-largest auto market, where it has a share of 6% of roughly 4 million units a year, and its Kia Seltos and Sonet SUVs are among the top sellers.

Foreign companies in India face headaches from high taxes and long-drawn-out investigations.

For example, Tesla TSLA.O has publicly complained about high taxes on imported EVs and Volkswagen VOWG_p.DE last week sued over a demand for a record $1.4 billion in back taxes that it called "impossibly enormous".

Tax officers sent a confidential notice to Kia's Indian unit in April 2024, flagging alleged tax evasion of 13.5 billion rupees, according to a government notice Reuters is reporting for the first time.

The offence centred on incorrect declaration of imports of components for the assembly of the carmaker's luxury Carnival minivan, the notice showed.

In a statement to Reuters, Kia India said it made "a detailed response, supported by comprehensive evidence and documentation to substantiate" its stand and the authorities were still reviewing the matter.

Kia India is committed to complying with all regulations and has "consistently cooperated with" authorities, it added.

India's finance ministry and customs officials did not respond to Reuters queries.

In its 432-page notice, the government said tax authorities found Kia's Carnival "car model was being imported in parts or components in separate lots" via different ports, with the "intent to discharge lesser customs duty".

Kia devised the strategy to ensure the imports "could not (be) detected by customs," it added in the notice, issued by a customs commissioner in the southern city of Chennai.

Two sources said Kia's 000270.KS case was similar to that of Volkswagen, accused of evading a higher tax of 30% to 35% applicable on parts imported in "completely knocked down" or CKD form in a single shipment, instead shipping separate parts over days, making them eligible for a tax rate of just 10% to 15%.

During the investigation, Kia's website showed the Carnival model sold in India as being in "CKD" form, with retail sales of 9,887 units between 2020 and 2022, the tax notice said.

The Volkswagen investigation spanned 14 car models from the Skoda Kodiaq to the Audi A3 and the Volkswagen Tiguan.

In contrast, Kia's case concerns only the Carnival model, a seven-seater priced around $73,500, which is among its most expensive cars in India.

KIA COULD FACE $310 MLN PAYOUT

Indian tax rules could require Kia to pay up to $310 million if it loses the dispute, or roughly double the amount evaded, due to penalty and interest.

The latest available corporate filings in India show Kia's domestic annual sales of $4.45 billion in fiscal 2022/23 were its highest ever, up 53% on the year, for net profit of $243 million.

Last week, India slashed import duties on fully-built high-end motorcycles to 30%, in a move widely seen as looking to placate U.S. President Donald Trump, who has in the past called India a "tariff king".

But fully-assembled imported cars still attract a levy of more than 100%.

Kia has deposited 2.78 billion rupees ($32 million) "under protest" as it continues to fight the Indian tax notice, which is still proceeding, said a government source who declined to be named as the matter is private.

In 2022, authorities searched Kia offices and a factory in the southern state of Andhra Pradesh and took statements from India executives, some of whom the document identifies as Chief Procurement Officer Lee Sang Hwa, and Chief Finance Officer Kiho Yoo.

During the investigation, Kia executives "changed their stance and have made efforts to mislead," the tax notice stated, referring to statements on imports, manufacturing and taxation.

Kia was accused of importing more than 90% of the parts for Carnival, constituting a car in CKD form, which attracts higher tax, it added.

India's head of indirect taxes, Sanjay Kumar Agarwal, told Reuters the law was clear and some automakers were flouting it by not paying applicable CKD duties.

"If they are on the wrong side, then the department will have to issue a notice," he said in an interview on Tuesday.

(Reporting by Nikunj Ohri, Aditya Kalra and Aditi Shah; Additional reporting by Munsif Vengattil; Editing by Clarence Fernandez)

((Email: [email protected]; X: @adityakalra;))

** Indian auto stocks .NIFTYAUTO decline least among 13 Nifty sectoral indices, down 0.3%

** Index heavyweights Maruti Suzuki India MRTI.NS and Mahindra & Mahindra MAHM.NS cap losses; up 1.6% and 1.9%, respectively

** TVS Motor TVSM.NS and Eicher Motors EICH.NS top gainers on index, up 3.7% and 2.3%, respectively

** No other stocks trading higher in 15-member Nifty Auto .NIFTYAUTO index

** Jefferies upgrades car market leader MRTI to "Buy" from "Hold" and raises PT to 15,000 rupees, after India slashes personal taxes in union budget

** Brokerage also raises growth estimates for car sales to dealers to 8%, from 6% for FY26 and 10%, from 9% for FY27

** MRTI to be "key beneficiary" of improving demand outlook - Jefferies

** Keeps MAHM, EICH and TVSM as its top sectoral picks, citing market share gains and resilience against competition

** Above mentioned stocks "Buy" on avg - LSEG

** All four stocks outperform index's 1.8% rise so far this year, led by MRTI's ~21% jump

(Reporting by Nandan Mandayam in Bengaluru)

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

Feb 1 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:

• SOLD A TOTAL OF 212,251 UNITS IN JAN

Source text: ID:nBSE779nfY

Further company coverage: MRTI.NS

(([email protected];;))

Jan 31 (Reuters) - TS Tech Co Ltd 7313.T:

• JAPAN'S TS TECH CO - SIGNED MOU WITH MARUTI-SUPPLIER KRISHNA GROUP INDIA TO ESTABLISH JV IN AROUND 2025

Source text: ID:nTSme88a87

Further company coverage: 7313.T

Jan 29 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:

• APPROVED THE SCHEME OF AMALGAMATION OF SMG INTO AND WITH THE COMPANY AND THEIR RESPECTIVE SHAREHOLDERS AND CREDITORS

Further company coverage: MRTI.NS

(([email protected];))

Jan 28 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:

• MARUTI SUZUKI - GOT TAX ORDER UPHOLDING DEMAND OF 539.6 MILLION RUPEES

• MARUTI SUZUKI - TAX ORDER UPHOLDS LEVYING INTEREST, PENALTY OF 539.6 MILLION RUPEES

Source text: ID:nBSE3qMYhM

Further company coverage: MRTI.NS

(([email protected];))

Jan 23 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:

• MARUTI SUZUKI- PLANS TO INCREASE CAR PRICES STARTING ON FEBRUARY 1,2025

• MARUTI SUZUKI- PRICE HIKE DUE TO RISING INPUT COSTS AND OPERATIONAL EXPENSE

Further company coverage: MRTI.NS

(([email protected];))

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.

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(Editing by Tomasz Janowski)

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Jan 17 (Reuters) -

• MARUTI SUZUKI CEO: INVESTED OVER 21 BILLION RUPEES TO MANUFACTURE E VITARA IN INDIA

• MARUTI SUZUKI CEO: TO ESTABLISH FAST CHARGERS IN INDIA’S TOP 100 CITIES WITH A CHARGER EVERY 5-10 KM

• MARUTI SUZUKI CEO: WILL INSTALL 1500 CHARGERS AT SERVICE STATIONS ACROSS INDIA

Further company coverage: MRTI.NS

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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)

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Jan 14 (Reuters) - India's car sales by manufacturers to dealers grew 4.2% in 2024, their slowest pace in four years, industry data showed on Tuesday, as demand for new cars cooled off amid high inflation.

Sales of passenger vehicles, which include small cars, sedans and sport utility vehicles (SUV), rose to a record 4.27 million units from January to December last year, compared to 4.11 million units in 2023, according to the Society of Indian Automobile Manufacturers, an industry body.

However, sales of small cars dipped 14.4% as their prices exceeded the income levels of their target customers, car manufacturers said. Sales of SUVs and large cars, on the other hand, grew 16.8% last year, albeit slower than the 22% jump they clocked in 2023.

Small cars comprise one-third of total car sales in India, while SUVs and other big cars form the rest.

Manufacturers and dealers were forced to dish out higher discounts in the latter half of 2024.

Analysts expect car sales growth to pick up pace in 2025 on the back of new model launches that are expected to boost demand as well as expectations of an interest rate cut.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Sonia Cheema)

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Jan 7 (Reuters) - Maruti Suzuki India Ltd MRTI.NS:

• ANNOUNCES 'E FOR ME' ELECTRIC MOBILITY BLUEPRINT

Source text: ID:nBSE1pytmJ

Further company coverage: MRTI.NS

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Updates with data from Maruti Suzuki, Hyundai India and Tata Motors throughout

By Meenakshi Maidas and Nandan Mandayam

Jan 1 (Reuters) - Indian carmakers Mahindra & Mahindra and Tata Motors reported a rise in sales to domestic dealers in December on steady sport utility vehicle demand, while year-end discounts helped Maruti Suzuki record its first small-car sales growth in 20 months, company data showed.

Market leader Maruti Suzuki's MRTI.NS domestic sales rose 24% in December and Mahindra & Mahindra MAHM.NS clocked a 16% jump, the two companies reported on Wednesday.

Sales for Maruti's small cars, which include the 'Swift' and 'Alto 800' models known as "hatchbacks", rose 29% in December.

While SUVs are currently India's favourite choice of cars - forming a little over 50% of sales - the small car segment remains key for Maruti, contributing 50% to its sales volumes in its current fiscal year.

The top three spots for Maruti have been taken by hatchbacks in December, which has done better numbers, Partho Banerjee, head of marketing and sales at Maruti said in a monthly sales call.

After two years of rapid growth, Indian automakers came under pressure through most of 2024 due to sluggish demand for new cars and rising costs, forcing them to offer larger discounts.

Analysts expect some growth to return with a series of launches slated to kick off later this month.

Mahindra, India's second-biggest SUV maker by market share, has remained resilient amid the slowdown. Its SUV sales jumped 18%, with analysts attributing that to demand outpacing supply for its newer SUV models, such as the 'Thar ROXX' and the 'XUV 3X0'.

However, Hyundai Motor India HYUN.NS continued to face heat from competition, with domestic sales dropping 1.3% in December, its second straight monthly drop. Tata Motors TAMO.NS reported a 2% rise.

The two have lost SUV customers to one of Mahindra's latest entrants in the SUV segment, the 'XUV 3X0', analysts said.

Last month, Maruti, Mahindra and Hyundai Motor India HYUN.NS each revealed plans to increase prices starting January.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Janane Venkatraman)

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Adds Toyota chairman's quotes, paragraphs 28-30

By Chang-Ran Kim

TOKYO, Dec 27 (Reuters) - Osamu Suzuki, an ingenious pennypincher who led Japan's Suzuki Motor 7269.T for more than four decades and played a key role in turning India into a flourishing auto market, has died aged 94.

He died on Christmas Day of lymphoma, said the company, which he steered ambitiously, during his time as either chief executive or chairman, out of its primary market of minivehicles.

The inexpensive, boxy, 660-cc cars specific to Japan benefited from generous tax breaks, but demanded a stringent reining-in of costs that proved to be a key part of the automaker's DNA.

Even so, Suzuki's thriftiness was legendary: he would order factory ceilings lowered to save on air-conditioning and fly economy class on airplanes even at an advanced age.

"Forever," or "until the day I die," were signature humorous responses with which he parried queries about how long he would stay at the company, on which he retained a tight grip into his 70s and 80s.

Born Osamu Matsuda, Suzuki took his wife's family name through adoption in a practice common among Japanese families lacking a male heir.

The former banker joined the company founded by her grandfather in 1958 and worked upwards through the ranks to become president two decades later.

In the 1970s, he saved the company from the brink of collapse by convincing Toyota Motor 7203.T to supply engines that met new emissions regulations, but which Suzuki Motor had yet to develop.

More success followed with the 1979 launch of the Alto minivehicle, which became a massive hit, boosting the automaker's bargaining power when it tied up with General Motors GM.N in 1981.

INDIA

Suzuki then took a big and risky decision to invest a year's worth of the company's earnings to build a national car maker for India.

His personal interest was motivated by a strong desire "to be number one somewhere in the world", he would later recall.

At the time, India was an automotive backwater with annual car sales below 40,000, mainly British knock-offs.

The government had just nationalised Maruti, set up in 1971 as a pet project of Sanjay Gandhi, son of then-Prime Minister Indira Gandhi, to produce an affordable, "people's car" made in India.

Maruti needed a foreign partner but early collaboration with Renault fell through as the sedan being considered was deemed too expensive and insufficiently fuel-efficient for domestic needs.

The Maruti team knocked on many doors but was snubbed widely by brands including Fiat and Subaru 7270.T and - by accident - Suzuki Motor.

The partnership only came about after a Suzuki Motor director in India saw a newspaper article about a potential Maruti deal with Japanese small-car rival Daihatsu.

He telephoned headquarters to learn that the Maruti team had been turned away. Suzuki then telexed Maruti and hastily invited the team back to Japan, asking for a second chance.

A letter of intent was signed within months.

The first car, the Maruti 800 hatchback based on the Alto, was launched in 1983, becoming an instant success.

Today, Maruti Suzuki MRTI.NS, majority-held by Suzuki Motor, still commands roughly 40% of India's car market.

In class-conscious India, Suzuki also ushered in change, insisting on equality in the workplace, ordering open-plan offices, a single canteen and uniforms for executives and assembly-line workers alike.

Not all endeavours were a success, however.

A month shy of his 80th birthday, Suzuki clinched a multi-billion-dollar tie-up with giant Volkswagen in December 2009.

Touted as a match made in heaven, it soon faltered, with Suzuki Motor accusing its new top shareholder of trying to control it, while VW objected to the Japanese firm's purchase of diesel engines from Fiat.

Suzuki Motor took VW to an international arbitration court in less than two years, eventually succeeding in buying back the stake of 19.9% it had sold to the German automaker.

Suzuki, who often cited golf and work as the keys to his health, finally passed the baton as CEO to his son Toshihiro in 2016, and stayed on as chairman for another five years until age 91, keeping an advisory role until the end.

Since 2016, his company has deepened ties with the world's biggest carmaker Toyota, which acquired a 5% stake in Suzuki Motor in 2019. Maruti Suzuki is set to supply electric cars for Toyota from next year.

"To me, he was more than an admired business leader: he was like a father," Toyota chairman Akio Toyoda said in a Friday statement, honouring Suzuki as a trailblazer of minivehicles.

"He was a father figure who developed Japan's kei car (minivehicle) and nurtured it into Japan's people's car."

(Reporting by Chang-Ran Kim; Editing by Edwina Gibbs, Clarence Fernandez, Peter Graff)

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

• INDIA'S NOV TOTAL DOMESTIC PASSENGER VEHICLE SALES 3,47,522 UNITS - INDUSTRY BODY

• INDIA'S NOV 2-WHEELER SALES 16,04,749 UNITS - INDUSTRY BODY

• INDIA'S NOV 3-WHEELER SALES 59,350 UNITS - INDUSTRY BODY

Source text: [ID:]

Further company coverage: ASOK.NS

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Dec 12 (Reuters) - Indian automaker Tata Motors TAMO.NS said on Thursday it will increase prices of its commercial vehicles, including trucks and buses, by up to 2% from January.

The company had previously said it would raise prices of its cars by 3% in January.

WHY IT'S IMPORTANT

Indian automakers are grappling with rising costs due to strong global commodity prices, high import duties on raw materials and supply chain disruptions.

They have also struggled with slowing sales after years of surging growth, forcing them to offer bigger discounts and moderate sales to dealers.

KEY CONTEXT

Earlier this month, Maruti Suzuki MRTI.NS, India's top carmaker by sales, JSW MG Motor and Hyundai Motor India HYUN.NS also said they would raise prices from January.

BY THE NUMBERS

($1 = 84.8690 Indian rupees)

(Reporting by Manvi Pant in Bengaluru; Editing by Savio D'Souza)

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Dec 6 (Reuters) - India's top carmaker Maruti Suzuki MRTI.NS on Friday said it will hike car prices by up to 4% to tackle rising raw material and operational costs, as it joins rival Hyundai Motor India HYUN.NS.

Maruti's shares rose as much as 1.7% to the day's high of 11,375.95 rupees after the announcement, its second one this year.

The hike, which is set to vary depending on the model, will come into effect from Jan. 1, 2025 and is higher than its 0.45% hike in January.

Hyundai India on Thursday also said it would raise prices across its models by up to 25,000 rupees ($295.37).

Indian automakers are grappling with higher costs from rising global commodity prices, high import duties on raw materials, and disruptions in supply chains.

Many carmakers, like Maruti, have also struggled with slowing sales as demand for new cars has cooled after successive years of surging sales.

($1 = 84.6410 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru; Editing by Abinaya Vijayaraghavan)

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Nov 15 (Reuters) - INDIA AUTO DEALERS' BODY FADA:

• NEARLY HIT OUR FORECASTED TARGET OF 4.3 MILLION VEHICLES DURING 42 DAYS FESTIVE PERIOD

• AUTO INDUSTRY YET TO FULLY BENEFIT FROM GOVERNMENT PUSH IN INFRASTRUCTURE SPENDING

• EXPECTS GOVERNMENT PUSH IN INFRASTRUCTURE SPENDING TO BOLSTER COMMERCIAL VEHICLE SALES

• COULD HAVE MET 4.5 MLN UNITS TARGET IF NOT FOR UNSEASONAL HEAVY RAINS IN SOUTH INDIA

• ANTICIPATES CAR STOCK LEVELS WILL REDUCE FURTHER FROM OCTOBER LEVELS

• URGES OEMS TO FOCUS ON LIQUIDATING 2024 STOCK AHEAD OF YEAR END

• LOOKING AHEAD, TRACTORS TO PERFORM BETTER, SUPPORTED BY GOOD RAINFALL, RISE IN MSP OF CROPS

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

• INDIA'S OCT TOTAL DOMESTIC PASSENGER VEHICLE SALES 393,238 UNITS - INDUSTRY BODY

• INDIA'S OCT 2-WHEELER SALES 2,164,276 UNITS - INDUSTRY BODY

• INDIA'S OCT 3-WHEELER SALES 76,770 UNITS - INDUSTRY BODY

Further company coverage: ASOK.NS

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