M&M

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

• MAHINDRA MAHINDRA - MOICML SELLS REMAINING 3.58% STAKE IN CIE AUTOMOTIVE S.A FOR EUR 126 MILLION

Further company coverage: MAHM.NS

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

MUMBAI, May 12 (Reuters) - India's M&M Financial accepted bids worth 8.55 billion rupees ($89.5 million) in a sale of bonds maturing in one year and nine months, three bankers said on Tuesday.

The non-bank lender will pay a coupon of 7.9% and had invited commitment bids for the issue on Monday, they said.

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

Here is the list of deals reported so far on May 12:

* Size includes base plus greenshoe for some issues

($1 = 95.5325 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Mrigank Dhaniwala)

((Dharamraj.dhutia@tr.com, khushi.malhotra@tr.com))

Rewrites throughout with company's comments from earnings call

By Kashish Tandon

May 8 (Reuters) - Hyundai Motor India HYUN.NS said on Friday that it expects domestic sales to grow 8-10% in the current fiscal and plans to invest $794 million to double capacity at its Maharashtra plant, as the carmaker rides a demand boost following tax cuts.

Vehicle sales in India have picked up since New Delhi lowered consumption taxes last September, lifting showroom footfalls.

Last month, however, the company said it would increase prices of its vehicles by up to 1% from May to combat rising commodity costs linked to the Iran war, joining domestic leader Maruti Suzuki MRTI.NS and global peers such as Mercedes-Benz MBGn.DE and BMW BMWG.DE.

The Creta SUV maker said it plans to double capacity at its Talegaon plant, near Pune city, to 320,000 units by the end of fiscal year 2027 and will also launch two new models, including a new electric SUV.

The market environment shifted meaningfully in the second half of fiscal 2026 following the government's tax overhaul, CEO Tarun Garg said in a post-earnings call.

For fiscal 2026, domestic sales were down 2.3%, underscoring the subdued demand that carmakers were seeing before the tax cuts took effect.

India cut levies on small cars and vehicles measuring less than four meters to 18% from 28%, lowering prices and lifting demand for price-sensitive models.

Exports have remained a bright spot for Hyundai, with fiscal 2026 exports rising 16.4%.

The Indian unit of South Korea's Hyundai Motor 005380.KS reported consolidated profit of 12.56 billion rupees for the fourth quarter, down from 16.14 billion a year earlier, but above analysts' estimate of 12.37 billion rupees, according to data compiled by LSEG.

Revenue rose 5.4% to 189.16 billion rupees.

($1 = 94.4800 Indian rupees)

(Reporting by Kashish Tandon in Bengaluru; Editing by Nivedita Bhattacharjee and Sonia Cheema)

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

Rewrites throughout with industry executive's comments, background

By Kashish Tandon

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

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

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

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

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

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

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

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

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

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

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

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

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

By Neha Arora

NEW DELHI, April 28 (Reuters) - India's secondary aluminium producers, which rely on imported scrap, are facing shortages as the Middle East conflict disrupts supplies and drives up costs that are likely to be passed on to automakers, industry executives said.

India, one of the world's largest aluminium scrap importers, produces nearly half of its 4.2 million metric tons of aluminium through its secondary sector. The country depends heavily on scrap from the European Union, the U.S. and the Middle East, which accounts for about 30% of shipments.

"Various units are running at lower capacities and there are production cuts of 20-40%," said Jayant Jain, managing director at G. R. Metalloys, a leading producer based in the western city of Ahmedabad.

Scrap prices have jumped by nearly 30% since the Iran conflict began earlier this year, executives said, squeezing margins and depleting inventories.

"There is a hand-to-mouth situation in scrap plants because of shortages and price increase," said Sandeep Jain, managing director at Sunalco Alloys, adding that most companies have exhausted stocks.

The strain is expected to ripple through to the auto sector, dominated by companies such as Maruti Suzuki MRTI.NS, Tata Motors TATM.NS, Mahindra & Mahindra and Hyundai Motor India HYUN.NS, which together consume about 60% of domestically produced secondary aluminium.

"Due to the squeeze in scrap supplies, prices have been impacted, which will eventually be passed on to carmakers and ultimately, the buyers," said Dhawal Shah, managing partner at Metco Ventures.

India's auto industry body warned earlier this month of potential production disruptions, as well as higher input, fuel and freight costs due to the Middle East conflict.

Secondary producers are also grappling with a 2.5% import levy on scrap, which executives say is exacerbating cost pressures. A recyclers' body has sought intervention from the Prime Minister's Office to remove the tax, Reuters reported last week.

The government is studying the industry's request, Mines Secretary Piyush Goyal said.

A European industry lobby group has also asked India to exempt a 10% import duty on glass bottles and aluminium cans amid shortage fears linked to the Iran war. The conflict has already caused a shortage of Diet ​Coke, which is sold only in aluminium cans in India.

(Reporting by Neha Arora. Editing by Mayank Bhardwaj and Mark Potter)

((neha.dasgupta@tr.com; X: neha_5;))

April 27 (Reuters) - Mahindra Holidays and Resorts India MAHH.NS reported a 43% drop in fourth-quarter profit on Monday, pressured by sluggish travel demand amid geopolitical tensions.

• The company, which operates the premier Club Mahindra brand, derives a significant share of its revenue from vacation properties in Finland, Sweden and Spain, which have been hit by flight disruptions and elevated fuel prices following the Iran war.

• Many flights between India and Europe transit through Dubai or other major hubs in the Middle East, which faced airspace closures in the quarter.

• "Our international operations continued to be impacted by geopolitical headwinds, a slowdown in the Finnish economy and adverse weather conditions during the year," Managing Director and CEO Manoj Bhat said.

• The company's consolidated net profit fell to 415.6 million rupees ($4.41 million) for the quarter ended March 31, compared with 730.8 million rupees a year ago.

• Total income from its overseas unit, Holiday Club Resorts, fell to 38.7 million euros ($45.45 million) from 39.7 million euros a year ago.

• However, resort revenue rose 11% to 120 million rupees from a year ago, helping offset some of the impact, as more customers shifted toward domestic travel.

• The number of members added, a key revenue driver, decreased sequentially by 445, with total memberships standing at nearly 304,000 in the quarter. Membership upgrades grew by 930 million rupees, though, a 33% rise from a year ago.

• Overall quarterly revenue climbed 5.3% to 8.2 billion rupees, while total expenses rose 10.5%.

• Shares of Mahindra Holidays fell 4.6% after the results.

($1 = 94.1537 Indian rupees)

($1 = 0.8514 euros)

(Reporting by Abhirami G in Bengaluru; Editing by Sumana Nandy and Shreya Biswas)

((abhirami.g@thomsonreuters.com))

India File is published every Tuesday. Think your friend or colleague should know about us? Forward this newsletter to them. They can also subscribe here.

By Ira Dugal

Once again, India's vast army of mom-and-pop investors is punching above its weight. While foreign funds rushed for the exits in March and shares in Asia's third-biggest economy logged their steepest monthly fall in six years, retail clients doubled down on their bets.

Are they spotting value early, or missing risks that foreign funds see? Write to me at ira.dugal@thomsonreuters.com.

And, the Reserve Bank of India puts banks under its radar for acting against the interests of the country's forex markets. Scroll down for more on that.

THIS WEEK IN ASIA

** US, Iran leave door open to dialogue after tense Islamabad talks

** Singapore tightens monetary policy as Iran war fuels inflation risks

** Iran war leaves crisis-scarred countries counting the cost

** China's factories snap years-long deflation spell on Iran war price shock

** Protracted Iran war narrows BOJ's rate hike options

CORRECTION VIEWED AS A BUYING OPPORTUNITY

In the central Indian town of Indore, 24-year-old Yash Raj Verma rubbed his hands in glee when markets took another dive in March as missiles flew in the Middle East war. "When everyone is selling, you should buy, I have understood that," said the home tutor who increased his monthly investments into stock funds by a quarter to 25,000 rupees ($268.49).

Millions of small-time investors like Verma remained unfazed in March when India's equity benchmark index Nifty 50 .NSEI fell 11% - the biggest monthly drawdown in six years. By contrast, foreign funds exited at a record pace.

The retail investors, who have pumped in an average of $2 billion a month over the past five years, have become crucial to Indian equity markets and are currently the main shock absorber for stocks as global money pulls back.

With Indian equity indices correcting rapidly since the Iran war began and threatening to magnify last year's underperformance - the worst in decades - analysts are watching closely to see if this class of investor buckles.

Data from the Association of Mutual Funds in India suggests they did not, at least in the month of March.

Equity-oriented mutual funds recorded net inflows of 404.5 billion Indian rupees in March 2026, up from 259.78 billion rupees in February. Inflows through monthly contribution plans like the one that Verma subscribes to, known as Systematic Investment Plans (SIPs), rose over 7% to a record 321 billion rupees.

While one-off factors like financial year-end contributions for tax saving may have helped, analysts said that investors used the fall in the market to bottom-fish.

Tarun Surana, a Mumbai-based independent distributor of mutual funds, said most of his clients had chosen to top up monthly investment plans during March's fall in equity markets.

"The correction appears to have been viewed as a buying opportunity rather than a trigger for risk aversion, leading to a meaningful pickup in equity inflows during the month," said Himanshu Srivastava, analyst at Morningstar Investment Research India.

PRESSURE ON COMPANY EARNINGS

The Iran war, now into its second month, has impacted sectors ranging from ceramics to glass manufacturing and restaurants, which have already seen business curtailed. Sentiment indicators like the HSBC India Purchasing Managers' Index have also declined.

Foreign investors expect that weakened growth will weigh on earnings of Indian firms, leaving equity indices looking overvalued despite the decline in prices.

Citing these concerns, Goldman Sachs downgraded India to 'market weight' from 'overweight' in a note dated March 26.

The negative sentiment has been reflected in flows, with foreign investors selling nearly $18 billion in Indian stocks in March and so far in April.

Domestic investors, though, see it differently.

The Nifty 50 typically trades at a 50% price-to-earnings premium to the MSCI Emerging Markets index .MSCIEF, Edelweiss Mutual Fund said in an April report, but that gap has now halved, pointing to a favourable medium-term outlook for Indian equities.

"We have seen many cycles and the market always comes back," said Lokesh Tiwari, a 43-year-old Abu Dhabi-based finance professional who typically invests 100,000 to 200,000 rupees a month in Indian equities but bought funds worth nearly 12 times that last month by repatriating his overseas money.

"Every time a correction happens, I look for opportunities."

MARKET MATTERS

India's central bank is looking into the unwinding of rupee arbitrage trades by banks after a recent order asking them to cut positions.

Banks offloaded a chunk of these positions to corporates, who are not allowed to take arbitrage bets, drawing the Reserve Bank of India's scrutiny.

The RBI is also likely to push ahead with a plan to ask lenders to report all offshore trades involving the Indian rupee, after a ballooning of arbitrage was seen to accelerate depreciation of the South Asian currency.

Read that Reuters Exclusive here.

THIS WEEK'S MUST-READ

The northern state of Haryana, home to the auto hub of Manesar, raised the minimum wage by 35% after factory workers protested rising living costs ‌as a result of the U.S.-Israeli war on Iran.

While retail prices of petrol and diesel have not been raised in India, cooking gas costs have risen.

Protests were also seen in nearby Noida, which also houses thousands of industrial units.

Higher wage costs will hurt Indian auto firms such as Tata Motors TATM.NS and Mahindra MAHM.NS, and push up prices in an economy where inflation is currently modest.

($1 = 93.1120 Indian rupees)

(Reporting by Ira Dugal; Editing by Muralikumar Anantharaman)

((Ira.Dugal@thomsonreuters.com; +91-9833024892;))

April 10 (Reuters) - Mahindra and Mahindra Ltd MAHM.NS:

• MAHINDRA & MAHINDRA - UNIT ENTERS INTO AGREEMENT WITH HISARLAR MAKINA SANAYI VE TICARET A.Ş., OGUZHAN SAHINKAYA AND MR. BUNYAMIN SARIOGLU

• MAHINDRA & MAHINDRA - MAHINDRA OVERSEAS INVESTMENT CO AND ERKUNT TRAKTOR TO SELL ENTIRE STAKE IN ERKUNT SANAYI ANONIM ŞIRKETI

• MAHINDRA & MAHINDRA - CONSIDERATION TO BE RECEIVED BY MOICML, ERKUNT TRAKTOR IS TURKISH LIRA 100,000

• MAHINDRA & MAHINDRA - MOICML AND ERKUNT TRAKTOR TO SELL THEIR ENTIRE 99.04% STAKE IN ERKUNT SANAYI ANONIM ŞIRKETI

Source text: ID:nBSE3v4HLN

Further company coverage: MAHM.NS

((reuters.briefs@thomsonreuters.com;))

Adds details, background from paragraph 2

April 6 (Reuters) - India’s auto dealers on Monday warned of possible supply or dispatch disruptions in the near term as the West Asia conflict drove up raw material costs, even as the fiscal year's total sales hit a record high.

The broader operating environment is clouded by the conflict, the Federation of Automobile Dealers Associations (FADA) said in a statement.

The war has pushed up oil and gas prices, raising fuel and logistics costs across the auto supply chain, while also driving up prices of key metals such as aluminium, copper and steel used in vehicle manufacturing.

Last week, India's top carmaker, Maruti Suzuki MRTI.NS, said that it will likely raise prices as the war pushed up commodity prices.

A FADA survey showed that more than half of the dealers experienced some form of supply or dispatch disruption linked to the ongoing conflict, with 17.1% reporting significant delays of three or more weeks.

On the fuel-price front, 36.5% of dealers reported that rising fuel prices are moderately to significantly affecting customer purchase decisions, it added.

While the impact was most pronounced in the commercial vehicle segment, passenger vehicle and two-wheeler dealers have also flagged selective delays based on different variants.

Indian retail auto sales rose 25.28% in March, the association said.

Passenger vehicle sales rose 21.48% year-over-year in March, while two-wheeler sales rose 28.68% and commercial vehicle sales rose 15.12%, closing the financial year on a strong note on sustained momentum from tax cuts that improved affordability, FADA said.

The total retail sales for the financial year rose 13.3%.

FADA also said passenger vehicle inventory, or the average time a car remained on the showroom floor, fell for a sixth consecutive month, to about 28 days in March, compared to 52 days in March last year.

(Reporting by Meenakshi Maidas in Bengaluru; Editing by Harikrishnan Nair)

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

April 2 (Reuters) - Mahindra and Mahindra Ltd MAHM.NS:

• MAHINDRA & MAHINDRA- ANNOUNCED INCREASE IN PRICES OF UP TO 2.5% FOR ICE SUV AND CV RANGE WITH AN AVERAGE HIKE OF 1.6% ACROSS PORTFOLIO

• MAHINDRA & MAHINDRA- PRICE INCREASE, EFFECTIVE 6 APRIL 2026, IS ATTRIBUTED TO A COMBINATION OF COST ESCALATIONS.

Source text: [ID:]

Further company coverage: MAHM.NS

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

April 1 (Reuters) - Mahindra and Mahindra Ltd MAHM.NS:

• MAHINDRA & MAHINDRA - CLOCKS 60,272 SUVS AND 99,969 TOTAL VEHICLE SALES IN MARCH 2026

• MAHINDRA & MAHINDRA - MARCH TOTAL VEHICLE SALES STOOD AT 99,969 UNITS, A 21% YOY GROWTH

Source text: [ID:]

Further company coverage: MAHM.NS

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

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))

By Aditi Shah

NEW DELHI, March 19 (Reuters) - India's automakers and parts suppliers are bracing for production slowdowns and assembly-line disruptions as the Iran conflict chokes gas availability, threatening growth in the world's third-largest car market.

Some parts suppliers to India's leading carmakers like Maruti Suzuki, Tata Motors and Mahindra are already reporting a shortage of gas to power operations, an early sign that supply chain issues are developing, according to two dozen executives at car companies, part makers and dealers.

The disruption comes at a time when India's car demand is soaring to record levels, with sales expected to cross 4.5 million units in the current fiscal year to March 31, leaving little excess inventory with manufacturers and dealers.

"At this point in time it is about survival. First and foremost we need to ensure production continues. The buffer stocks will not last long," said a senior executive with a leading carmaker.

INDIA MOST EXPOSED TO WEST ASIA CONFLICT

India relies heavily on the Middle East for energy supplies, importing 50% of its natural gas needs mostly from Qatar, which has been forced to shut its refinery after a wave of Iranian attacks.

Shipments of oil and gas through the Strait of Hormuz have also tanked after Iranian attacks on vessels.

While India is working to secure gas from the U.S., Norway and Russia, the government has prioritised supplies for homes over factories. In auto sector plants, the fuel is critical to high-heat processes like forging and casting, and in the paint shop.

Suppliers Reuters spoke to in India's western and northern car manufacturing belts said production will be managed until end-March. But the stress in the system is showing, with at least four executives saying Tata and Mahindra are operating some factories below capacity.

Mahindra said in a statement that the company has not lost any production this month versus its "plan to date", while a spokesperson for Tata Motors said operations at its plants are "near normal".

Tata said it is working with suppliers to ensure continuity and optimising production where required.

Small and medium manufacturing units, which form the car industry's backbone, are most vulnerable, as they rely more on gas and are unable to switch to other sources quickly.

Kirloskar Ferrous KRFI.BO, a supplier of iron castings, told an Indian stock exchange this week it has stopped some production at a factory in Western India "until further notice".

Metal producer Hindalco HALC.NS declared force majeure to some of its customers last week, warning them of potential disruptions amid gas shortages.

Both companies count Mahindra as a customer. Mahindra did not offer a direct comment about the two suppliers, but said its teams are working on the supply chain and taking action as needed.

CARMAKERS YET TO OFFICIALLY CUT PRODUCTION SCHEDULES

Automakers are operating in a state of high-alert diplomacy with their suppliers to keep assembly lines moving, and have not officially cut production schedules yet.

"We have received some information about challenges in energy supply for our in-house and our suppliers' production operations," said Rahul Bharti, senior executive officer for corporate affairs at Maruti MRTI.NS, India's biggest carmaker.

"As of now, our operations are running as per plan," he told Reuters.

S&P Global Mobility has already begun slashing its India outlook, now forecasting 6.3% growth in light vehicle production for 2026, down from 7.4% projected before the war.

"Depending on when the conflict ends, we may need to further revise the forecast," said S&P's Gaurav Vangaal.

(Reporting by Aditi Shah; Editing by Jan Harvey)

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

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;))

By Gabriel Araujo

SAO PAULO, March 9 (Reuters) - Brazilian planemaker Embraer EMBJ3.SA could roll out E175-E1 regional jets from a potential production line in India as early as 2028, but the plan hinges on orders for at least 200 aircraft, CEO Francisco Gomes Neto told Reuters on Friday.

Earlier this year, Embraer and India's Adani Group had announced a memorandum of understanding to establish a final assembly line for the Brazilian firm's first-generation jetliners in India.

Such a move would mark a significant win for the Indian government, which has urged planemakers to build jets locally, and a geographic shift for Embraer, which currently produces commercial jets only in Brazil.

"Of course, we will not start a significant investment without orders. That's the first point, we need the orders. And what we're saying is this: to set up an assembly line, we need at least 200 aircraft to be produced there," Gomes Neto said.

If orders are secured by the end of 2026, the company would be able to start delivering planes in 2028, he added.

"It's roughly 24 months, which we believe is enough to begin making it happen. They know that, it's clear to us," the CEO said.

Gomes Neto said Embraer has identified at least 1,800 Indian routes that could be operated by E1s – jets that seat up to 88 people and are essential to U.S. regional aviation but have lacked demand elsewhere in recent years.

The executive noted that a plant in India would help Embraer boost production while filling its hybrid line in Brazil with orders for the newer E2 family, which has seen strong global demand.

Embraer, which initially targeted reaching 100 commercial aircraft deliveries in a single year in 2028, now sees scope to hit the milestone in 2027, the CEO said.

SAUDI ARABIA NO LONGER A C-390 HOTSPOT

In addition to commercial aircraft, Embraer has also partnered in India with Mahindra on the C-390 military cargo jet, calling the country a "strategic market" for its defense unit.

Saudi Arabia, the European Union, and the United States also earned that label in 2024, but Gomes Neto said prospects have now dimmed for an order from the Middle Eastern country.

"It continues to be a business front, but it's not in the hotspot for us right now," he said, adding that Embraer is instead focusing on India and the United States.

Embraer had hoped to replace Saudi Arabia's aging fleet of Lockheed Martin's C-130. In 2023, when President Luiz Inacio Lula da Silva visited the country, it signed a deal with SAMI, which has the backing of Saudi public wealth fund PIF, to explore a potential C-390 assembly line there.

"We have a good product there, but I believe they had the vision of having a larger aircraft," Gomes Neto said. "It's still on our radar, but no longer in the hotspot."

(Reporting by Gabriel Araujo
Editing by Nick Zieminski)

((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))

March 3 (Reuters) - Mahindra and Mahindra Ltd MAHM.NS:

• CLARIFICATION ON MEDIA REPORT ABOUT INDONESIA PUTS CO'S VEHICLE IMPORTS ON HOLD

• CO HAS NOT RECEIVED ANY COMMUNICATION FROM INDONESIA ABOUT SUSPENSION OF ORDER FOR SUPPLY OF VEHICLES

Source text: ID:nBSE45Xp1

Further company coverage: MAHM.NS

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

March 2 (Reuters) - Indian automaker Mahindra & Mahindra MAHM.NS said on Monday that its Japan-based unit will exit the agricultural machinery business by the first half of fiscal year 2027 as losses continue to mount.

Mitsubishi Mahindra Agricultural Machinery Co (MAM) plans to dissolve and proceed with liquidation, but will continue to operate the business that supplies spare parts to existing customers.

The unit has incurred losses despite multiple structural measures aimed at restoring profitability, Mahindra & Mahindra said, adding that it would be difficult to continue the business sustainably.

MAM's agricultural machinery portfolio includes products such as tractors, combine harvesters and rice transplanters.

MAM generated revenue of 20.94 billion rupees ($228.9 million) for the year ended March 31, 2025, accounting for 1.13% of the group's consolidated turnover, Mahindra said.

($1 = 91.4650 Indian rupees)

(Reporting by Komal Salecha in Bengaluru; Editing by Sonia Cheema)

((Komal@thomsonreuters.com;))

By Aditi Shah

NEW DELHI, Feb 20 (Reuters) - Tata Motors TAMO.NS is betting that its new low-priced Punch EV will succeed in cracking the dominant budget segment of the world's third-largest car market for electric vehicles, its CEO said ahead of the model's launch on Friday.

Around 65% of the 4.6 million passenger vehicles sold in India last year were priced below $13,200. But, of those affordable cars, just 1.6% were EVs, compared to 10% of those in higher price categories.

There currently are only a small number of EV models available in the lower price range in India. And range anxiety and concerns around their slow charging times and battery life reliability are holding back buyers, Shailesh Chandra told reporters.

"The real challenge is the entry segment. Until we crack this, we will not be able to mainstream EVs," Chandra said.

The new Punch EV is priced from $10,650, with a long-range variant that can cover a distance of 350 kilometres (217 miles) on a single charge selling for $13,850.

The Punch can be charged from a 20% battery level to 80% in 26 minutes with a fast charger, the company says, and comes with a lifetime battery warranty.

Tata is also offering an option to decouple the price of the car from the battery, reducing the EV's upfront cost to $7,100. The battery can then be paid for separately at a price of 3 cents per km.

GOVERNMENT WANTS MORE EV ADOPTION, BUT SALES LAGGING

India's government is pushing to increase EV sales to 30% of the total market by 2030 from around 5% currently to reduce the country's dependence on imported fuel and bring down high levels of pollution in its cities.

However, EV sales growth has slowed, pushing carmakers to offer discounts.

Chandra said Tata Motors is sacrificing margins "to some extent" on its EV range to ensure there is long-term progress towards electrification, but added that profits are not far below its combustion engine car business.

"EVs have moved from being experimental to being a serious play," he said.

Tata, India's largest seller of electric vehicles, competes with JSW MG Motor, SAIC's 600104.SS India venture, and Mahindra & Mahindra MAHM.NS.

Maruti Suzuki MRTI.NS, India's biggest carmaker, is the latest to enter the EV segment with its e-Vitara SUV, priced from around $12,000 for the base variant in which the battery is leased separately and $22,000 for the long-range model.

(Reporting by Aditi Shah; Editing by Joe Bavier)

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

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

• MAHINDRA & MAHINDRA - EMBRAER AND MAHINDRA ANNOUNCE MRO CAPABILITY IN INDIA

• MAHINDRA & MAHINDRA - EMBRAER AND MAHINDRA PARTNER TO PRODUCE C-390 IN INDIA

Source text: ID:nBSE5pQGLV

Further company coverage: MAHM.NS

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

PARIS, Feb 18 (Reuters) - French car parts maker Valeo VLOF.PA unveiled plans to increase its sales in India, with its new initiatives announced alongside President Emmanuel Macron's trip to India this week which is expected to yield new deals for French companies.

Valeo said it would be investing more than 200 million euros ($236.7 million) in the coming years to expand its presence in India and that these new investments were aimed at tripling Valeo's sales in India to around 700 million euros by 2028.

Valeo added it had been selected to supply electric powertrains for a range of vehicles under the 'Born Electric’ passenger vehicle platform of Indian company Mahindra & Mahindra MAHM.NS and that this strategic partnership had a total order value of close to $1 billion.

"India is a key pillar of Valeo's global growth and innovation roadmap, and we are committed to significantly expanding our engineering centers and industrial footprint," said Valeo CEO Christophe Perillat in a statement.

($1 = 0.8449 euros)

(Reporting by Gilles Guillaume; Editing by Sudip Kar-Gupta)

((sudip.kargupta@thomsonreuters.com;))

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;;))