HYUNDAI

April 1 (Reuters) - Hyundai Motor Co 005380.KS:

• HYUNDAI MOTOR INDIA LTD- ACHIEVED TOTAL Q4 SALES OF 2,08,275 UNITS IN JANUARY TO MARCH 2026 PERIOD, REPORTING YOY GROWTH OF 8.7%

• HYUNDAI MOTOR INDIA LTD - MARCH EXPORTS 13,940 UNITS; DOMESTIC SALES 55,064 UNITS

Source text: ID:nnAZN4SOGQJ

Further company coverage: 005380.KS

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Repeats to additional subscribers, with no change to text

By Aditi Shah

NEW DELHI, March 26 (Reuters) - India has asked automakers and parts suppliers to tighten production schedules to conserve fuel amid fears of shortages caused by disrupted oil and gas imports from the Gulf due to the Iran war, a government memo seen by Reuters shows.

The heavy industries ministry has also urged companies to shift factory operations from oil-based fuels to electricity and to use recycled aluminium or alternative materials as shortages and costs rise, according to the March 25 advisory.

For India, one of the world's largest oil and gas importers, the advisory underscores the government's mounting concern over the conflict and its disruption to energy flows, supply chains and availability of raw materials.

India's ministry of heavy industries did not immediately respond to a request for comment.

The government has already prioritised use of gas for households over industries, which get only about 80% of their average needs.

Some parts suppliers to India's leading carmakers like Maruti Suzuki MRTI.NS, Tata Motors TAMO.NS and Mahindra MAHM.NS are already reporting a shortage of gas to power operations at a time when vehicle sales are booming.

The ministry wants the sector to do more.

"Wherever technically feasible, a transition from oil-based fuels to electricity may be considered. Further, production schedules may be optimised to minimise idle and standby fuel consumption," the ministry said in its note.

The government wants companies to use recycled aluminium where possible and explore the use of alternative materials for packaging and other non-critical applications to reduce "demand pressure" amid shortages which are already affecting beer makers.

"I don't know how much we can change in the factory, but the takeaway is that this war is going to go on for a long time and we should be prepared," said an executive at an Indian carmaker.

(Reporting by Aditi Shah, Editing by William Maclean)

((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))

By Aditi Shah

NEW DELHI, March 26 (Reuters) - India has asked automakers and parts suppliers to tighten production schedules to conserve fuel amid fears of shortages caused by disrupted oil and gas imports from the Gulf due to the Iran war, a government memo seen by Reuters shows.

The heavy industries ministry has also urged companies to shift factory operations from oil-based fuels to electricity and to use recycled aluminium or alternative materials as shortages and costs rise, according to the March 25 advisory.

For India, one of the world's largest oil and gas importers, the advisory underscores the government's mounting concern over the conflict and its disruption to energy flows, supply chains and availability of raw materials.

India's ministry of heavy industries did not immediately respond to a request for comment.

The government has already prioritised use of gas for households over industries, which get only about 80% of their average needs.

Some parts suppliers to India's leading carmakers like Maruti Suzuki MRTI.NS, Tata Motors TAMO.NS and Mahindra MAHM.NS are already reporting a shortage of gas to power operations at a time when vehicle sales are booming.

The ministry wants the sector to do more.

"Wherever technically feasible, a transition from oil-based fuels to electricity may be considered. Further, production schedules may be optimised to minimise idle and standby fuel consumption," the ministry said in its note.

The government wants companies to use recycled aluminium where possible and explore the use of alternative materials for packaging and other non-critical applications to reduce "demand pressure" amid shortages which are already affecting beer makers.

"I don't know how much we can change in the factory, but the takeaway is that this war is going to go on for a long time and we should be prepared," said an executive at an Indian carmaker.

(Reporting by Aditi Shah, Editing by William Maclean)

((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))

** BOB Capital initiates coverage on Hyundai Motor India HYUN.NS with "Buy", PT of 2,287 rupees

** Says Pune plant's capacity expansion positions co for volume growth, supporting its premiumisation strategy, with SUVs accounting for ~70% of domestic sales

** Adds co emerging as key export hub for parent Hyundai Motor 005380.KS; 30% export-share target offers hedge during domestic slowdowns, supports margins

** Notes co's planned ~450 bln-rupee ($4.79 bln) capex over FY26-FY30 for R&D, capacity expansion expected to lift production capacity to 1.1 million units by FY28

** Believes GM India manufacturing plant acquisition adds flexibility for 26 launches, helping diversification, supporting volume growth without margin erosion

** HYUN up 1.3%; Nifty Auto .NIFTYAUTO index up 2.2%

($1 = 93.9210 Indian rupees)

(Reporting by Mridula Kumar in Bengaluru)

((Mridula.Kumar@thomsonreuters.com;))

MUMBAI, March 23 (Reuters) - Indian billionaire Mukesh Ambani's Reliance Jio Platforms is gearing up to file papers seeking regulatory approvals for a Mumbai listing, in what is likely to be the biggest-ever stock offering in the country.

Here are facts and numbers on Jio Platforms, which houses the world's second-largest telecom company by users after China Mobile 600941.SS.

TELECOM BUSINESS

Reliance Jio Platforms is a unit of Ambani's oil-to-retail conglomerate Reliance Industries RELI.NS. It is most known for the telecom business - Reliance Jio Infocomm, which is the country's biggest player with more than 500 million subscribers.

Launched in 2016, the telecom business, popularly just called Jio, hit rivals such as Bharti Airtel BRTI.NS and Vodafone-Idea VODA.NS hard by offering free voice and data plans initially.

The move, in line with Ambani's typical strategy of offering cut-throat prices to lure consumers, drove up its customer base and allowed many Indians to access platforms such as YouTube and Facebook for the first time.

Jio says it currently has a roughly 60% share of India's data traffic.

In recent years, Reliance Jio Platforms has diversified beyond telecom into AI, cloud and enterprise network services, as well as app development. In 2023, Nvidia NVDA.O announced AI partnership with Reliance to develop cloud infrastructure and language models.

THE LEADERSHIP

Mukesh Ambani, Asia's richest man, is the chairman of Jio Platforms. His three children - Akash, Anant and Isha - serve on its board. Akash Ambani, his elder son, is the chairman of the company's flagship telecom unit, Reliance Jio Infocomm.

Reliance Industries holds 66.43% stake in Jio Platforms.

Kiran Thomas is the CEO of Jio Platforms.

KEY FINANCIALS, VALUATION

Reliance Jio Platforms' operating revenue in the last financial year ending March 2025 stood at $13.65 billion. But 90% of that came just from the telecom business, which the company says has grown annually by 13% since 2020-21.

Reliance Jio Platforms posted a profit after tax of $2.8 billion in the year.

In November, investment bank Jefferies estimated that Reliance Jio's valuation stood at $180 billion. Sources told Reuters in January the IPO could be worth as much as $4 billion, though final numbers will only be decided later.

MARQUEE INVESTORS

In 2020, Jio Platforms raised more than $20.5 billion from 13 global investors in exchange for a roughly 33% equity stake, at a valuation range of $57 billion to $65 billion.

Global names such as Meta Platforms META.O, Alphabet GOOGL.O and KKR invested in the firm, as Ambani sought to turn Jio Platforms into the centerpiece of his technology ambitions.

Other investors include General Atlantic, Silver Lake and the Abu Dhabi Investment Authority. Meta owns a 9.9% stake in the company, followed by Google's 7.7% stake.

THE IPO JOURNEY

The company's IPO has been long delayed. In 2019, Ambani said Jio would "move towards" a listing within five years, but later the plans were delayed in 2025.

The company has hired 17 banks to manage its offering, which will see the company raise no new funds from the public and only allow exits for some shareholders.

(Reporting by Vibhuti Sharma and Aditya Kalra; Editing by Arun Koyyur)

((Vibhuti.Sharma@thomsonreuters.com;))

Adds details on structure, background in paragraphs 6-7, 13-16

By Vibhuti Sharma, Jayshree P Upadhyay and Aditya Kalra

MUMBAI, March 18 (Reuters) - Indian billionaire Mukesh Ambani's Reliance Jio Platforms has hired 17 banks to manage its Mumbai stock listing, which will see the company raise no new funds and allow exits for some shareholders, four sources familiar with the matter said.

The IPO will be executed as a so-called "offer for sale" in India, three of the sources said, where only existing shareholders sell their shares to the public.

Reliance did not respond to Reuters queries.

"We don't need new money," said one of the sources, explaining the decision not to raise funds from the IPO.

Over the past six years, Jio has diversified into AI and raised funds from investors including KKR KKR.N, General Atlantic, Silver Lake and the Abu Dhabi Investment Authority.

The offer-for-sale route is increasingly becoming a lucrative exit route for global investors and how large IPOs are executed in India. Other recent IPOs via this route included the 2024 listing of Hyundai Motor HYUN.NS and LG Electronics India LGEL.NS in 2025.

In November, investment bank Jefferies estimated that Reliance Jio's valuation stood at $180 billion.

LONG LIST OF INVESTMENT BANKS

The hiring of banks brings the parent of India's largest telecom operator Reliance Jio, with over 500 million users, closer to being possibly the country's largest IPO worth more than $4 billion.

Jio's roster of 17 advisors includes Wall Street giants Citigroup C.N and JPMorgan JPM.N, and Indian investment banks Axis Capital, ICICI Securities, IIFL IIFL.NS, and Kotak Mahindra Capital, said two of the sources, who added that the plan is to file for regulatory approval this month.

Other banks on the list include the securities arms of Goldman Sachs GS.N, Morgan Stanley MS.N and Bank of America BAC.N, they added.

Goldman Sachs and Bank of America declined to comment. The other investment banks did not respond to requests for comment.

The news on hiring of banks and prospectus filing timeline for Jio's listing come as the Mideast conflict has cast a cloud over global capital market deals, with a handful getting pulled.

Strong IPO momentum in India, however, seems intact with the largest exchange operator, the National Stock Exchange of India, saying last week it had hired 20 banks to manage its IPO.

It's not unusual for a large number of banks to vie for a mandate and get hired for large equity public offerings of private enterprises, as they compete for league table credit in a market where deals exceeding a billion dollars are rare.

In the country's largest-ever IPO mandate, 18 investment banks were involved in the public offering of shares by asset manager ICICI Prudential AMC in 2025, which saw a share sale of $1.2 billion.

(Reporting by Vibhuti Sharma and Jayshree P Upadhyay in Mumbai and Aditya Kalra in Delhi; Editing by Sumeet Chatterjee, Joe Bavier and Bernadette Baum)

((Vibhuti.Sharma@thomsonreuters.com;))

March 13 (Reuters) - India's domestic car dispatches to dealers rose for the fifth straight month in February, data from an industry body showed on Friday, helped by tax cuts that have lowered prices across most models.

"While the month of March has festive drivers... the recent conflict in West Asia remains a concern... could impact the manufacturing processes and exports," Rajesh Menon, Director General of Society of Indian Automobile Manufacturers (SIAM), said.

Here are some key details:

• Passenger vehicle dispatches jumped 10.6% to 417,705 units in February, compared with 377,689 units a year earlier.

• Tax reductions continue to fuel growth, extending momentum for fifth consecutive month.

• In September 2025, India slashed taxes on larger SUVs to 40% as an additional levy was dropped and on small cars and two-wheelers to 18% from 28%, helping support demand across segments.

• Vehicle sales picked up during the ongoing wedding season, supported by strong bookings, inventory build-up and new model launches.

• Domestic demand is expected to remain strong, though exports could soften on reduced shipments to Africa and the Middle East, analysts added.

• SIAM warns the ongoing Middle East crisis could hit production and exports if supply chains are disrupted.

• A shortage of gas - crucial for paint shops and component manufacturing - may affect production, analysts said, though they expect only near-term impact on Indian manufacturers due to inventory buffers.

• Domestic demand to stay robust but exports could weaken due to reduced shipments to Africa and the Middle East- Axis Capital

• India, the world's third-biggest car market, has an auto industry that accounts for 7.1% of its GDP.

• Tax cut-driven growth is likely to sustain for several quarters, a dealer's body said last week.

(Reporting by Meenakshi Maidas and Urvi Dugar in Bengaluru)

((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))

March 9 (Reuters) - Hyundai Motor Co 005380.KS:

• LAUNCHES THE NEW HYUNDAI VERNA AT A STARTING PRICE OF 1.1 MILLION RUPEES

Further company coverage: 005380.KS

((Reuters.Briefs@thomsonreuters.com;))

March 6 (Reuters) - The U.S.-Israel war with Iran, which entered its seventh day on Friday, threatens to disrupt the shipment of vehicles from Asia to the Middle East, a major export market for Asian automakers.

Chinese, Indian, South Korean and Japanese automakers export cars worth billions of dollars to the Middle East through the Strait of Hormuz and shipping along the route has ground to a halt over fears of attacks by Tehran.

CHINA

The Middle East is the second-largest overseas market for China-made vehicles and an increasingly important region for the Asian giant as it looks to offset weak demand at home.

Of the 8.32 million cars shipped overseas by Chinese automakers in 2025, 1.39 million, or one-sixth, were to Gulf countries like Saudi Arabia and the United Arab Emirates, according to the China Passenger Car Association.

Major car exporters include Chery Automobile 9973.HK, BYD 002594.SZ, SAIC Motor 600104.SS, Changan Automobile 000625.SZ and Geely 0175.HK.

China joint ventures of Kia 000270.KS, Hyundai Motor 005380.KS and Toyota Motor 7203.T are also among the top 10 car exporters to the Middle East, according to data from Gasgoo Automotive Research Institute, China's largest supply chain platform.

INDIA

India exported $8.8 billion worth of cars in 2025, of which 25% went to the Middle East, mainly Saudi Arabia, according to commercially available customs data.

Hyundai Motor is most exposed with half its 2025 global shipments of $1.8 billion from India going to countries in the Gulf region.

Toyota, too, has a large exposure with about two-thirds, or more than $300 million, of its total India exports of $470 million last year going to the Middle East, according to the data.

Maruti Suzuki MRTI.NS sends less than 15% of its exports by value to the Gulf region, the data showed. Of its total exports of $3.2 billion in 2025, cars worth $457 million were shipped to the region.

Nissan Motor's 7201.T exposure from India is about $318 million, or 38% of its total exports in 2025, the data showed.

SOUTH KOREA

South Korea's total car exports by value in 2025 hit a record $72 billion, of which $5.3 billion of vehicles were sent to the Middle East, up 2.8% from 2024, according to the Korea International Trade Association.

Hyundai Motor's exports to the Middle East and Africa accounted for 8% of its total wholesale sales in 2025 of 4.14 million units. This adds up to about 317,000 cars that were shipped to the combined region.

Kia shipped 8% of its 2025 wholesale sales of 3.1 million units to the Middle East and Africa.

JAPAN

Toyota exported 320,699 vehicles from Japan to the Middle East in 2025, which was a 5.4% increase over the previous year, according to data published by the company. This made up just over 15% of the company's total exports of over 2 million units last year.

The automaker will produce nearly 40,000 fewer vehicles bound for Middle East markets due to logistical concerns stemming from the U.S.-Israeli campaign against Iran, the Nikkei reported.

(Reporting by Aditi Shah in New Delhi, Zoey Zhang in Shanghai, Heekyong Yang in Seoul and Maki Shiraki in Tokyo; Editing by Miyoung Kim and Jamie Freed)

((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))

Rewrites, adds details, background, auto body president comment

By Meenakshi Maidas and Yagnoseni Das

March 5 (Reuters) - India's retail vehicle sales jumped 25.6% in February, as last year's tax cuts and a pick-up in weddings drove demand for two-wheelers and passenger vehicles, the auto dealers' body said on Thursday.

Analysts had expected double‑digit year‑on‑year growth in February, supported by price cuts, new model launches and firm rural demand, after India cut taxes on vehicles last September to boost consumption in the wake of steep U.S. tariffs.

Two-wheeler sales jumped 25% from a year ago in February, while passenger vehicle sales climbed 26.1%, the Federation of Automobile Dealers Associations said, adding that demand was supported by weddings with enquiries rising across rural and urban markets.

The dealer body's president, C.S. Vigneshwar, told Reuters that growth is likely to sustain for several quarters, if not years, noting that the industry had always expected the impact of the tax cuts to be "seismic" rather than seasonal.

Over two-thirds of dealers surveyed by the association expect retail sales to grow in March, buoyed by festival-driven demand and fiscal year-end purchases. However, dealers have flagged supply constraints for some models.

Vigneshwar said that there has been no immediate impact on logistics for vehicles from the Middle East war.

Passenger vehicle inventory, or the average time a car remained on the showroom floor, fell for a fifth consecutive month to 27–29 days from 32-34 days in January.

(Reporting by Meenakshi Maidas and Yagnoseni Das Bengaluru; Editing by Eileen Soreng and Mrigank Dhaniwala)

((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))

Feb 13 (Reuters) -

• INDIA AUTO INDUSTRY BODY SIAM - INDIA'S JAN TOTAL DOMESTIC PASSENGER VEHICLE SALES 4,49,616 UNITS

• SIAM - INDIA'S JAN 2-WHEELER SALES 19,25,603 UNITS

• SIAM - INDIA'S JAN 3-WHEELER SALES 75,725 UNITS

• SIAM: NEW BUDGET INITIATIVES, POLICY TAILWINDS EXPECTED TO DELIVER LONG-TERM BENEFITS, SUPPORT GROWTH IN MEDIUM TERM

((Reuters.Briefs@thomsonreuters.com;;))

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

By Shritama Bose

MUMBAI, Feb 10 (Reuters Breakingviews) - A record run of listings is doing little to shore up investment banking fortunes in India. Citi and JPMorgan passed up working on a $1.4 billion float last month by SBI Funds Management, India's largest asset manager, after the issuer set fees at 0.01% of the issue size, Bloomberg reported citing sources. Such state-backed issuers are usually stingy but the hottest private issuers in 2026 are likely to offer slim pickings too.

Fees are growing but remain well short of desirable levels. Net revenue from India's $23 billion of initial public offerings amounted to 1.7% of proceeds in 2025, up from 1.4% a year earlier, Dealogic data show. Underwriters in the U.S. typically command between 4% and 7%.

And while India is now delivering a consistent pipeline of sizeable deals, extracting the measly fees on offer is painful. ICICI Prudential Asset Management's IICL.NS $1.4 billion offering in December was shepherded by 18 banks.

Fees also are increasingly split into equal fixed and variable components tied to the quality of investors a bank brings to a transaction. Roughly one-fifth of the total payout is reserved as a discretionary bonus issuers can choose to hold back. In practice, robust demand for Indian stock means these incentives and bonuses are mostly paid but they suck up time to negotiate.

Firms working on prospective blockbuster deals - such as Reliance Industries' RELI.NS planned offering of Jio Platforms, handled by Morgan Stanley and Kotak Mahindra Bank, per a Reuters report, and National Stock Exchange - won't be spoilt for riches either.

Choosing deals well can be rewarding. Foreigners remain among the few willing to pay for advice. IT exporter Hexaware Technologies HEXW.NS, acquired by global private equity firm Carlyle CG.O in 2021, paid 2.5% to Kotak and Citi for its $1 billion listing, for example. Mandates on the Indian listings of multinationals' local subsidiaries, such as Hyundai Motor India HYUN.NS and LG Electronics India LGEL.NS, have been lucrative too.

Those fees, though, are unlikely to push much higher if the rest of the market is stingy.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Citi and JPMorgan pulled out of a planned $1.4 billion initial public offering by SBI Funds Management over low fees, Bloomberg reported on January 7, citing unnamed people familiar with the matter. SBI Funds later replaced Citi with Jefferies, the report added. Sellers State Bank of India and France’s Amundi offered fees of about 0.01% of the issue size after some domestic advisers quoted only a token fee for the mandate, the report said.

(Additional reporting by Aditya Srivastav; Editing by Una Galani; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on BOSE/shritama.bose@thomsonreuters.com))

Repeats February 6 story. No change to text.

By Aditi Shah

NEW DELHI, Feb 9 (Reuters) - India has scrapped a planned concession for small cars in upcoming fuel-efficiency rules after automakers including Tata Motors and Mahindra & Mahindra argued it would benefit only one company, a government document shows.

A September draft had proposed leniency for petrol cars weighing 909 kg (2,004 lb) or less - a carve-out widely seen as favouring Maruti Suzuki, which controls 95% of India's small‑car market.

India's Power Ministry has now removed that exemption and tightened other parameters, increasing pressure on all automakers to ramp up electric and hybrid car sales, according to the latest 41-page draft reviewed by Reuters.

The new rules curb over-compensation for vehicle weight, aim to level the field between light and heavy fleet manufacturers, and are designed to deliver real-world efficiency gains, the document said.

They introduce "a substantially steeper reduction pathway" for emissions, it added.

The power ministry did not respond to a request for comment.

PROMOTING ELECTRIC, HYBRID MODELS

Transport accounts for about 12% of India's energy use and is a major driver of petroleum imports and carbon emissions. Passenger vehicles make up nearly 90% of transport-related emissions, the document says.

Corporate Average Fuel Efficiency norms dictate permissible CO2 emissions across a manufacturer's fleet of passenger cars weighing less than 3,500 kg (7,716 lb). Updated every five years, they push automakers towards cleaner technologies including electrification, compressed natural gas and flex-fuel.

The new rules will apply from April 2027 for five years and are central to automakers' product and powertrain investment plans. It was not immediately clear when the rules will be finalised.

The September draft would have allowed fuel-consumption targets to rise faster with vehicle weight, easing compliance for makers of heavier cars such as Mahindra MAHM.NS, Tata TAMO.NS and Volkswagen VOWGp.DE, while tightening demands on lighter-fleet players such as Maruti MRTI.NS. That imbalance prompted the carve-out.

The revised plan reduces the extent to which heavier vehicles gain more relaxed targets.

"Manufacturers with heavier fleets ... are required to achieve stronger intrinsic efficiency improvements," the document said.

A credit system will reward companies that sell more EVs and plug-in hybrids, and pooling of fuel-consumption performance between companies will be allowed. Non-compliance will draw penalties of up to $550 per car.

The revised plan aims to cut average fleet emissions to about 100 grams/km over the five years to March 2032 from 114 grams/km. With credits, that could fall to as low as 76 grams/km if electric models reach 11% of total car sales by 2032.

(Reporting by Aditi Shah. Editing by Mark Potter)

((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))

By Aditi Shah

NEW DELHI, Feb 6 (Reuters) - India has scrapped a planned concession for small cars in upcoming fuel-efficiency rules after automakers including Tata Motors and Mahindra & Mahindra argued it would benefit only one company, a government document shows.

A September draft had proposed leniency for petrol cars weighing 909 kg (2,004 lb) or less - a carve-out widely seen as favouring Maruti Suzuki, which controls 95% of India's small‑car market.

India's Power Ministry has now removed that exemption and tightened other parameters, increasing pressure on all automakers to ramp up electric and hybrid car sales, according to the latest 41-page draft reviewed by Reuters.

The new rules curb over-compensation for vehicle weight, aim to level the field between light and heavy fleet manufacturers, and are designed to deliver real-world efficiency gains, the document said.

They introduce "a substantially steeper reduction pathway" for emissions, it added.

The power ministry did not respond to a request for comment.

PROMOTING ELECTRIC, HYBRID MODELS

Transport accounts for about 12% of India's energy use and is a major driver of petroleum imports and carbon emissions. Passenger vehicles make up nearly 90% of transport-related emissions, the document says.

Corporate Average Fuel Efficiency norms dictate permissible CO2 emissions across a manufacturer's fleet of passenger cars weighing less than 3,500 kg (7,716 lb). Updated every five years, they push automakers towards cleaner technologies including electrification, compressed natural gas and flex-fuel.

The new rules will apply from April 2027 for five years and are central to automakers' product and powertrain investment plans. It was not immediately clear when the rules will be finalised.

The September draft would have allowed fuel-consumption targets to rise faster with vehicle weight, easing compliance for makers of heavier cars such as Mahindra MAHM.NS, Tata TAMO.NS and Volkswagen VOWGp.DE, while tightening demands on lighter-fleet players such as Maruti MRTI.NS. That imbalance prompted the carve-out.

The revised plan reduces the extent to which heavier vehicles gain more relaxed targets.

"Manufacturers with heavier fleets ... are required to achieve stronger intrinsic efficiency improvements," the document said.

A credit system will reward companies that sell more EVs and plug-in hybrids, and pooling of fuel-consumption performance between companies will be allowed. Non-compliance will draw penalties of up to $550 per car.

The revised plan aims to cut average fleet emissions to about 100 grams/km over the five years to March 2032 from 114 grams/km. With credits, that could fall to as low as 76 grams/km if electric models reach 11% of total car sales by 2032.

(Reporting by Aditi Shah. Editing by Mark Potter)

((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))

** Hyundai Motor India HYUN.NS misses quarterly profit estimates, hurt by higher raw material costs nL4N3YY0RX

** Shares flat at 2,198.6 rupees

NEAR-TERM WEAKNESS FROM COMPETITION

** Jefferies ("underperform", PT cut to 1,900 rupees) says weak results and increased competition from Maruti Suzuki India MRTI.NS and Tata Motors Passenger Vehicles TAMO.NS to HYUN's top-selling Creta SUV cloud margin outlook; adds valuation expensive with market share at 25-year low

** Nomura ("buy," PT cut to 2,698 rupees) says under first Indian CEO, Tarun Garg, HYUN will focus on being more agile to meet 2030 domestic market share target of 15%

** Slate of new model launches from October 2026 to help improve growth trajectory "sharply" - Nomura

** Motilal Oswal ("buy", PT cut to 2,567 rupees) says while ramp-up of new Pune facility to hurt margins in near term, SUV-heavy lineup makes co well-positioned to benefit from premiumisation trend

** UBS ("buy", cuts PT to 2,690 rupees) says despite elevated costs, HYUN's broader outlook remains constructive on a strong launch pipeline and healthy exports momentum

(Reporting by Nandan Mandayam in Bengaluru)

((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))

Feb 2 (Reuters) -

• HYUNDAI MOTOR INDIA Q3 CONSOL PAT 12.34 BILLION RUPEES; IBES EST. 13.93 BILLION RUPEES

• HYUNDAI MOTOR INDIA Q3 CONSOL TOTAL REVENUE FROM OPERATIONS 179.73 BILLION RUPEES

Further company coverage: 005380.KS

((Reuters.Briefs@thomsonreuters.com;))

Corrects paragraph 3 to say Hyundai India IPO was in 2024, not last year

By Amy-Jo Crowley, Jayshree P Upadhyay, Kane Wu and Aditya Kalra

LONDON/MUMBAI/HONG KONG, Jan 9 (Reuters) - Reliance Jio Platforms is considering an initial public offering this year that would float 2.5% of the company, people familiar with the matter said, a move that could make it the country's largest-ever IPO worth more than $4 billion.

The company, led by Mukesh Ambani, is the parent of India's largest telecom operator Reliance Jio - with more than 500 million users. Its debut is the country's most highly anticipated IPO this year.

In November, investment bank Jefferies estimated that Reliance Jio's valuation stood at $180 billion. At that valuation, a 2.5% stake sale would raise $4.5 billion, dwarfing Hyundai Motor India's HYUN.NS $3.3 billion IPO in 2024.

Over the past six years, Jio has diversified into artificial intelligence and raised funds from well-known investors including KKR KKR.N, General Atlantic, Silver Lake and the Abu Dhabi Investment Authority.

Reliance would like to list only 2.5% of Jio's shares given the large size of the company, the sources said, even though a proposal from India's market regulator to reduce the minimum size of share sales for large companies seeking IPOs to 2.5% from 5% is awaiting approval from the finance ministry.

"The preference is to list 2.5% at this point if the law gets changed as a smaller amount creates more pricing tension," one of the sources with direct knowledge said, adding that some bankers were pitching a valuation of $200 billion to $240 billion for the business, though Reliance hasn't decided on a firm number.

Reliance RELI.NS did not respond to Reuters requests for comment. The sources declined to be named as they were not authorised to speak publicly.

It has not been decided if the Jio IPO would be a so-called offer-for-sale, which allows existing shareholders to sell their shares to the public, or if it would also involve the issuance of new stock. Hyundai's India IPO, for example, was an offer-for-sale and did not raise new funds.

The Jio listing would add to strong momentum in India's IPO market over the last couple of years; it ranked as the world's No. 2 primary equity issuance market in 2025, raising $21.6 billion as of December 18, according to LSEG data.

TWO BANKS WORKING ON PROSPECTUS

In 2019, Ambani first flagged plans to list Jio within five years. Last year, Reuters reported that he delayed the offering beyond 2025 as the company wanted a higher valuation by expanding into other niche digital businesses.

Reliance Jio is also set to lock horns with Elon Musk, who is expected to launch the Starlink internet service in India in the coming months. Jio has also partnered Nvidia NVDA.O to develop AI infrastructure.

In August, Ambani said Jio would list in the "first half of 2026." The listing timeline depends on market conditions, one of the sources said.

Although formal appointments have yet to be made, bankers from Morgan Stanley MS.N and India's Kotak are already working with Reliance on drafting the IPO papers, which can be a drawn-out process, a fifth source with direct knowledge of the situation said.

Reliance is waiting for the 2.5% public float rule to be cleared by the finance ministry and the size of the sale could change in the coming months, the person added.

Reliance expects many foreign investors who invested in the company in recent years to seek an exit via the IPO, the person said.

Morgan Stanley and Kotak did not respond to Reuters requests for comment.

(Additional reporting by Vibhuti Sharma; Editing by Sumeet Chatterjee and Thomas Derpinghaus)

((Email: aditya.kalra@tr.com; X: @adityakalra;))

Jan 6 (Reuters) - INDIA AUTODEALERS BODY FADA:

• DEC’25 AUTO RETAIL AT 20,28,821 UNITS

• DEALER SENTIMENT REMAINS FIRMLY POSITIVE, WITH OUR SURVEY INDICATING 70.48% EXPECTING GROWTH

• OVER NEXT 3 MONTHS, RETAIL OUTLOOK REMAINS DECISIVELY UPBEAT

• DEC’25 AUTO RETAIL UP 14.63% YOY

((Reuters.Briefs@thomsonreuters.com;))

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

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

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

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

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

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

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

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

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

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

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

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

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

((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))

Dec 31 (Reuters) - Hyundai Motor India HYUN.NS:

• TO INCREASE PRICES BY 0.6% FROM JAN 1, 2026

• PRICE INCREASE DUE TO RISE IN COST OF PRECIOUS METALS AND COMMODITIES

• ANNOUNCES A MINOR PRICE INCREASE

Source text: ID:nBSE4qzXpg

Further company coverage: HYUN.NS

((Reuters.Briefs@thomsonreuters.com;;))

Dec 30 (Reuters) - Hyundai Motor India HYUN.NS:

• ENTERS COMMERCIAL MOBILITY SEGMENT WITH PRIME TAXI RANGE

Source text: ID:nNSE4lgzG2

Further company coverage: 005380.KS

((Reuters.Briefs@thomsonreuters.com;;))

By Aditi Shah

NEW DELHI, Nov 28 (Reuters) - India's biggest carmakers including Tata Motors and Hyundai want the government to scrap a weight-based emission concession for small cars under planned new efficiency rules, a move they say would benefit just one company, letters seen by Reuters show.

Tata TAMO.NS, Mahindra & Mahindra MAHM.NS, JSW MG Motor and Hyundai HYUN.NS are concerned that a weight-based relief risks hurting India's EV goals while helping a single player, according to individual letters they wrote to the government.

They did not name the player but industry data shows and three auto executives told Reuters that Maruti Suzuki MRTI.NS would be the main beneficiary.

Maruti, the biggest seller of small cars in India, told Reuters that global car markets like Europe, the U.S., China, Korea and Japan all had some provisions in their emission regulations to protect the "very small cars".

'LIMITED POTENTIAL FOR EFFICIENCY IMPROVEMENTS'

Under India's current Corporate Average Fuel Efficiency norms, the quantity of permissible carbon dioxide emissions applies to all passenger cars weighing less than 3,500 kg (7,716 lb).

The new rules propose tightening average CO2 emissions to 91.7 grams/km from an earlier target of 113 grams/km. This will make it tougher for small cars to meet the target compared with large SUVs, pushing companies to sell more EVs.

In its latest draft, India has proposed leniency for petrol cars weighing 909 kg or less, measuring under four meters in length and with engine capacity of 1200 cc or below as they offer "limited potential for efficiency improvements".

This has created a sharp split between India's leading EV-focused companies and Maruti - for whom 16% of sales come from cars weighing under 909 kg - causing delays in finalising the regulation that is crucial for automakers to plan future product portfolios and investments in powertrain technology.

Three company executives told Reuters the 909 kg threshold was arbitrary and did not align with any global standards, alleging that the move only benefitted Maruti Suzuki.

In a letter to India's power ministry, which is drafting the rules, Mahindra requested omission of a "special category" or definitions based on size or weight.

"(This) can have adverse effects in terms of the nation's progress towards safer, cleaner cars, and can alter the level playing field for industry players," it said.

RISKS TO INDUSTRY STABILITY AND CUSTOMERS

Hyundai told the industries ministry in its letter that the exemption may be perceived internationally as a step backward, at a time when global markets are converging toward stricter fuel-efficiency and zero-emission standards.

"Abrupt policy changes favouring a specific segment risk undermining industry stability and customer interests, as future investments and technology rollouts are planned on the basis of established norms," Hyundai said in a statement to Reuters.

JSW MG Motor said that over 95% of cars under 909 kg come from a single carmaker, without naming anyone.

"A relaxation restricted to this weight band would disproportionately benefit one manufacturer," it said in its letter to the road transport ministry dated November 21.

Tata, Mahindra and JSW MG Motor did not respond to a request for comment. India's power, transport and industries ministries also did not respond to requests.

Maruti told Reuters that small cars consume much less fuel and emit less carbon dioxide than bigger cars, so having this "safeguard" will help both CO2 reduction and fuel saving.

About 16% of its sales in India are of cars weighing less than 909 kg but demand has been falling as buyers choose bigger SUVs.

(Reporting by Aditi Shah; Editing by Emelia Sithole-Matarise)

((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))

Nov 14 (Reuters) - INDIA AUTO INDUSTRY BODY SIAM:

• INDIA'S OCT TOTAL DOMESTIC PASSENGER VEHICLE SALES 4,60,739 UNITS

• INDIA'S OCT 3-WHEELER SALES 81,288 UNITS

Further company coverage: ASOK.NS

((Reuters.Briefs@thomsonreuters.com;))

Rewrites throughout, adds chairman's comment in paragraphs 3,7

By Kashish Tandon and Meenakshi Maidas

Oct 31 (Reuters) - Maruti Suzuki MRTI.NS, India's top carmaker, expects small car sales to grow faster than SUVs, driven by recent tax cuts aimed at reviving sluggish domestic demand, its chairman said on Friday, after the firm missed quarterly profit estimates.

India simplified its goods and services tax (GST) structure on September 22, lowering the levy on small cars to 18% from 28%, while raising it on larger vehicles to 40%. The move is aimed at spurring demand in the price-sensitive segment that has been under pressure,

"The retail sales of vehicles in the 18% GST category are likely to grow faster than those in the 40% category," Chairman, R.C. Bhargava said, adding that about 70% of Maruti's production falls under the lower tax bracket.

Maruti, like most Indian automakers, has been grappling with weak domestic demand, mirroring an industry-wide slowdown that has led to single-digit profit growth for five straight quarters.

Domestic sales dropped 4.8% in the first half of the fiscal that began in April, including an 11.5% dip in the September quarter and small car sales falling 4.3%.

Exports, however, surged 42.2% to 110,487 units.

"Export business is going to be a major part of our operations and is contributing significantly to profitability," Bhargava said, adding that Maruti, India's largest exporter of cars, expects to export over 400,000 vehicles this fiscal year, 20.3% higher than last year.

Maruti's second-quarter profit rose 7.3% to 32.9 billion rupees ($374.3 million), missing analysts' estimate of 35.93 billion rupees, per data compiled by LSEG.

Its operating margin contracted to 8.5% from 10.3% a year earlier, hit by higher commodity and marketing costs.

Shares fell as much as 1.6% on Friday, but are up 49% so far this year, hitting record highs in August after the tax cuts were first announced.

Maruti, majority-owned by Japan's Suzuki Motor 7269.T, has been expanding its SUV portfolio to fend off competition from Hyundai HYUN.NS and Tata Motors TAMO.NS.

On Thursday, Hyundai Motor India said it was on track to exceed its export target for fiscal 2026 and was seeing improved demand following the tax reforms.

($1 = 87.8950 Indian rupees)

(Reporting by Chandini Monnappa, Kashish Tandon and Meenakshi Maidas in Bengaluru; Editing by Mrigank Dhaniwala and Sonia Cheema)

((Chandini.M@thomsonreuters.com; https://www.linkedin.com/in/chandini-monnappa-8a37b013b/;))

BENGALURU, Oct 14 (Reuters) - LG Electronics India LGEL.NS made a stellar stock market debut on Tuesday, listing at a premium of 50% to its issue price of 1,140 rupees per share.

This is the best listing for a billion-dollar Indian initial public offering since Eternal ETEA.NS, the parent company of food delivery and restaurant-listing platform Zomato, debuted in 2021.

Here's a look at how India's other billion-dollar IPOs have done this decade:

SBI CARDS AND PAYMENT SERVICES (MARCH 2020)

The credit card arm SBIC.NS of India's largest lender, State Bank of India SBI.NS, slid about 13% in market debut, as the COVID-19 pandemic worries dampened enthusiasm for one of the country's largest public listings.

ETERNAL, FORMERLY KNOWN AS ZOMATO (JULY 2021)

The food and grocery delivery platform listed at a premium of 51.3% to its issue price, giving the startup a valuation of about $13 billion and setting the stage for other domestic startups waiting in the wings with listing plans of their own.

ONE97 COMMUNICATIONS (NOVEMBER 2021)

The parent of digital payments start-up, Paytm PAYT.NS, made one of the worst major Indian stock market debuts as its shares listed at a 9% discount and closed the first day 27% below its offer price due to concerns over profitability and lofty enterprise value.

LIFE INSURANCE CORPORATION OF INDIA (MAY 2022)

Shares of India's biggest insurer LIFI.NS slid nearly 9% in market debut amid broader market volatility and concerns over its market share loss to rivals.

HYUNDAI MOTOR INDIA (OCTOBER 2024)

The automaker's shares HYUN.NS fell 1.5% on listing after retail investors gave a lukewarm reception to the country's biggest-ever IPO amid concerns about a lofty valuation and an auto industry slowdown.

SWIGGY (NOVEMBER 2024)

The SoftBank-backed food and grocery delivery platform SWIG.NS listed at a 5.6% premium and extended gains through the day, signaling growing investor confidence in the segment.

NTPC GREEN ENERGY (NOVEMBER 2024)

The renewable energy firm's shares NTPG.NS jumped as much as 14% on their debut, as investors bet on the country's growing clean energy needs and the company's diversified portfolio.

HDB FINANCIAL SERVICES (JULY 2025)

Non-banking financial lending arm HDBF.NS of the country's largest private lender HDFC Bank HDBK.NS jumped about 13% on listing, notching a valuation of $8.2 billion, as investors bet on long-term growth prospects in the world's most populous country.

TATA CAPITAL (OCTOBER 2025)

India's third-largest non-bank lender TATC.NS made a muted debut, listing slightly higher than its issue price at a $15.78 billion valuation, with investors seemingly not that keen on the Tata Group's first IPO in two years due to a crowded IPO market and lack of valuation discount to listed peers.

(Reporting by Vivek Kumar M; Editing by Rashmi Aich)

((vivekkumar.m@thomsonreuters.com))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Refiles to add topic codes.

By Ujjaini Dutta

BENGALURU, Oct 9 (Reuters Breakingviews) - Rich valuations are a defining feature of Indian equities. So, it’s eye-catching when a global company listing its subsidiary in the South Asian market shuns the lofty multiples on offer. That’s the decision South Korea’s LG Electronics 066570.KS took this week.

Few global brands are as embedded in Indian homes as the maker of refrigerators, microwaves, televisions and air conditioners. It is the country’s biggest white-goods retailer by sales and LG Electronics India LGEL.NS is more profitable than its rivals. Instead of leveraging that advantage, the South Korean group is accepting a steep valuation discount on the $1.3 billion offering of its shares in the unit.

The $9 billion market capitalisation it's set to secure almost matches its parent’s but values the subsidiary at about 35 times its trailing earnings. That is close to the multiple of distant rival Whirlpool India WHIR.NS, which is half as profitable, and compares to 65 times Havells India HVEL.NS and 57 times for Voltas. It's so cheap that the offer was fully subscribed on the first day of bidding; BlackRock and the sovereign funds of Abu Dhabi, Singapore and Norway led the charge.

True, competition in India is heating up. Over the last three years, LG Electronics India's market share has slipped just about two percentage points in its leading product segments as global brands from Haier to Samsung Electronics 005930.KS muscle in. Yet LG is growing in the emerging market in other ways. It’s opening a third factory, plans to export Made-in-India goods to Europe, and generates oodles of cash to fund those ambitions. New Delhi’s effort to sign more free trade agreements also will support its goals.

The South Korean group may have wanted to secure a strong secondary market performance but Hyundai Motor India HYUN.NS did that without short-changing existing owners: the stock is up nearly 30% on the offer price since its October debut. Investors in LG Electronics may ultimately feel the company gave away too much value.

Follow Ujjaini Dutta on LinkedIn and X.

CONTEXT NEWS

LG Electronics' initial public offering of its Indian business was fully subscribed on the first day of bidding on October 7.

The offering, comprised entirely of existing shares, is worth up to 116 billion rupees ($1.3 billion). At the upper end of the price band, the company will have an IPO market capitalisation of $8.73 billion.

(Editing by Una Galani; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on DUTTA/ujjaini.dutta@thomsonreuters.com))

Adds details paragraph 2 onwards

Oct 7 (Reuters) - Indian dealers' auto sales grew 5.2% year-on-year in September, with upbeat growth across two-wheelers and passenger vehicles, as tax cuts boosted demand during the festive season, the Federation of Automobile Dealers Associations said on Tuesday.

While sales were muted in the first three weeks of September, they surged after September 22, when the revised goods and services tax rates took effect, the auto dealers association said.

Two-wheeler sales climbed 6.5% from a year earlier, while passenger vehicle sales grew 5.8%.

Dealers posted record high sales during the nine-day Navratri festival, the association said, with a 34% year-on-year jump during the period, as a wave of new customers entered showrooms and existing ones upgraded their vehicles, taking advantage of lower taxes and festive schemes.

The auto dealers body expects an above-normal monsoon, strong harvest, and steady lending rates to boost purchasing power of consumers, driving demand.

It also expects "peak sales" during the Diwali festival in October, when Indians typically tend to make high-value purchases.

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

((Kashish.Tandon@thomsonreuters.com; 8800437922;))

Rewrites throughout, adds details for more automakers

By Yagnoseni Das

Oct 1 (Reuters) - Three out of four of India's top carmakers posted a year-on-year rise in dispatches to dealers in September, snapping a four-month streak of falling sales, as higher footfalls during the festive season and consumption tax cuts fueled a demand rebound.

New Delhi slashed the goods and services tax on sports utility vehicles (SUVs) with engine capacities above 1,500 cc to 40% from an effective rate of 50% as part of its effort to boost consumption and support growth amid headwinds from trade tensions with the United States.

Tax on small petrol and diesel cars also went down to 18% from 28%.

Tata Motors TAMO.NS posted a 47% jump in sales to dealers, and Hyundai Motor India HYUN.NS reported a 10% rise, its first since November 2024.

Both companies attributed the surge to a rise in SUV sales, with Tata adding that its compact SUV Nexon recorded the highest-ever monthly sales for any model in the company’s history.

Mahindra & Mahindra MAHM.NS, which has a line-up comprised entirely of SUVs, also reported a 10% rise in sales after posting its first decline in August in over three years. Sales grew 60% after September 22, when the tax cuts came into effect.

However, market leader Maruti Suzuki reported a more than 8% decline, dragged by lower SUV sales for a fourth straight month, even as sales of small cars rose 4.6%.

Vehicles dispatched on September 22, the first day of the local festival Navratri, were still in transit due to logistics delays, compressing deliveries into a short window and limiting retail sales for the month, its sales and marketing head Partho Banerjee said in a call on Wednesday.

Maruti Suzuki, Mahindra & Mahindra, Hyundai Motor India and Tata Motors are India's four largest carmakers, and account for about 80% of sales.

(Reporting by Yagnoseni Das in Bengaluru; Editing by Janane Venkatraman)

((Yagnoseni.Das@thomsonreuters.com;))

** Hyundai Motor India HYUN.NS gains 4.2% to 2,838 rupees

** Nomura keeps "buy" rating, 2,846 rupees PT on strong model cycle, rising SUV mix benefits

** Notes GST cuts to help segments including compact SUVs to gain market share

** Export margins for HYUN also higher than domestic margins and thus a rising exports mix will support margins - Nomura

** Brokerage expects HYUN's EPS CAGR of 27% over FY26-28

** Avg rating by 23 analysts on HYUN at "buy"; median PT is 2,430 rupees - data compiled by LSEG

** Stock extends YTD gains to 57%

(Reporting by Kashish Tandon in Bengaluru)

((Kashish.tandon@thomsonreuters.com))

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

By Ujjaini Dutta

BENGALURU, Sept 11 (Reuters Breakingviews) - Prime Minister Narendra Modi’s administration is undermining its own electric-vehicle policy - again. The goal, set in 2017, is for battery-powered rides to make up 30% of new vehicle sales by 2030, from the current 7.6%. That was already looking tough. New Delhi’s decision last week to slash goods and sales taxes on petrol, diesel and hybrid rides makes it even more difficult.

There are logical reasons for reducing the GST – to 18% from 28% for small cars and to 40% from effectively up to 50% for larger models like SUVs. Perhaps chief among them is that crawling real income growth has left the world’s third-largest market for new vehicles sputtering, with passenger vehicles expanding just 2% overall in the 12 months to the end of March, according to the Society of Indian Automobile Manufacturers, compared with 8.4% in the year ended March 2024 and 26.7% in March 2023.

The prospect of the changes kickstarting sales has boosted carmakers. Shares in India's leading small-car maker Maruti Suzuki MRTI.NS have soared nearly 17% since Modi first mentioned impending tax cuts last month, while those of Hyundai Motor India HYUN.NS jumped over 11%. Last week’s inclusion of large cars in the tax break had Mahindra & Mahindra’s MAHM.NS stock quickly catch up, too.

On the face of it, the GST reductions might not seem to matter for EVs, whose levy remains unchanged at the lowest 5% rate. And the battery-powered models currently available in the market target less price-sensitive customers, an analyst at HDFC Securities told Breakingviews.

But a sudden reduction in sticker prices for fossil fuel-powered cars across the board has several negative effects for EVs. It makes it even harder for them to break into the cheaper end of the market: India’s entry-level electric cars cost nearly double Maruti Suzuki’s popular small-car models, for instance.

Meanwhile, lower sticker prices for higher-end models could sway those wavering between an EV and a petrol-powered SUV. The more buyers plump for internal combustion engines and hybrids, the more delays there could be in reducing the Indian EV market’s headwinds, from limited models to choose from to patchy charging infrastructure.

That adds to speed bumps New Delhi and regional governments have already put in the way, like offering subsidies or removing registration fees for hybrid vehicles. Cheaper gas guzzlers makes Modi’s 2030 target look even more remote.

Follow Ujjaini Dutta on Linkedin and X.

CONTEXT NEWS

Indian Finance Minister Nirmala Sitharaman on September 3 announced goods and services tax cuts on consumer items, including small cars, simplifying the system to a two-rate structure of 5% and 18%, instead of four rates currently.

GST on small cars is reduced to 18% from 28%. Mid-size and large cars are now taxed at 40%, down from as much as 50%. Electric vehicles are still taxed at 5%. The new rates will be effective September 22.

(Editing by Antony Currie; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on DUTTA/ujjaini.dutta@thomsonreuters.com))