TMPV

April 6 (Reuters) - India’s auto dealers warned of possible supply disruptions in the near term, from the West Asia conflict, even as Indian retail vehicle sales rose 25.28% in March, closing the financial year on a strong note on sustained momentum from tax cuts that improved affordability, the Federation of Automobile Dealers Associations (FADA) said on Monday.

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%, FADA said.

(Reporting by Meenakshi Maidas in Bengaluru)

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

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

• JLR Q4 SALES BOUNCE BACK AFTER CYBER INCIDENT

• JLR Q4 FY26 WHOLESALES 95,300 UNITS, DOWN 14.5% YOY

• JLR RETAIL SALES IN Q4 FY26 WERE 92,700 UNITS

• JLR Q4 FY26 RETAIL SALES 92,700 UNITS, DOWN 14.3% YOY

• JLR FULL YEAR VOLUMES IMPACTED BY US TARIFFS, CHINA MARKET CHALLENGES

• JLR FY VOLUMES IMPACTED BY US TARIFFS, CHINA MARKET CHALLENGES AND PLANNED WIND DOWN OF LEGACY JLR, PRODUCTION STOPPAGES

Source text: ID:nBSE2R6N38

Further company coverage: TAMO.NS

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

April 1 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• TATA MOTORS PASSENGER VEHICLES - MAR'26 TOTAL SALES 66,971 UNITS

• TATA MOTORS PASSENGER VEHICLES - INDUSTRY WILL NEED TO CLOSELY MONITOR GEOPOLITICAL DEVELOPMENTS TO MITIGATE POTENTIAL SUPPLY-SIDE RISKS

• TATA MOTORS PASSENGER VEHICLES - EXPECT TO DELIVER INDUSTRY-BEATING GROWTH IN FY27

Source text: ID:nBSE7ZKxWn

Further company coverage: TAMO.NS

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

By Nick Carey, Rachel More and Giulio Piovaccari

LONDON/BERLIN/MILAN, March 30 (Reuters) - A laser-engraved hood inspired by Arabian architecture and a matching wood-trim interior are among the luxuries Rolls-Royce featured in a one-off Phantom Arabesque model commissioned by a Dubai customer it showcased in February before the Iran war.

Now the Middle East market, which in volume terms accounts for less than 10% of sales at most luxury carmakers but punches far above its weight in profit, is under threat just as demand is weakening almost everywhere around the globe.

A standard Rolls-Royce Phantom starts at about 430,000 pounds ($572,416), but the addition of bespoke features for wealthy Gulf buyers can push prices far above that - for some models bespoke additions can double or triple the price tag.

Rolls-Royce Motor Cars, owned by Germany's BMW BMWG.DE, revealed the Arabesque just a week after opening its second Dubai showroom, before U.S.-Israeli strikes on Iran followed by Iran's strikes on the Gulf sent shockwaves across the region.

"It's the best market in the world," Bentley CEO Frank-Steffen Walliser said earlier this month of the Middle East.

But many luxury dealerships in the Gulf closed temporarily after war broke out on February 28. Ferrari RACE.MI and Stellantis STLAM.MI unit Maserati paused deliveries this month, although both say showrooms have since reopened.

In an emailed response to questions, Rolls-Royce said it was "closely monitoring" the situation in the Middle East.

"Given the fluidity of the situation, it would be premature to speculate on longer-term impacts," the automaker added.

Meanwhile, F1rst Motors in Dubai, which sells all the top luxury car brands, shut its doors for the first few days after the war started, but has since reopened.

Director Chris Bull said the showroom is best known for its selection of Ferraris and Bugattis and sells vehicles ranging from about $250,000 all the way up to $14 million.

Bull said since F1rst Motors reopened, business is down about 30%, although sales of cars priced at more than $1.4 million have stabilised and its sales outside the United Arab Emirates remain robust.

"Obviously, there are fewer people walking in the front door ... But we're still managing to maintain a good level of business," Bull said, adding some buyers will pay up to 30,000 euros ($34,512) to fly a $7 million car out of the country.

'IT'S VERY HIGH MARGIN'

Brands including Lamborghini, like Bentley a unit of Volkswagen VOWG_p.DE, Italy's Ferrari RACE.MI, Tata Motors' TAMO.NS Jaguar Land Rover and Germany's Porsche P911_p.DE are watching nervously, hoping for a swift end to the conflict.

"It's very high margin," Volkswagen CEO Oliver Blume said of Middle East sales in a media briefing earlier this month, adding of the Iran war: "We will see an impact there for sure".

Most luxury and premium automakers do not break out profit margins by region and some, including Bentley and Rolls-Royce, no longer publish global sales numbers.

But Ferrari reported volumes in the Middle East made up 4.6% of overall sales last year, more than it sold in China and up from 3.5% in 2024. The Italian sports car maker's sales in the region are stable for now, a spokesperson said.

A hallmark of the region is limited-edition runs that allow automakers to charge hefty premiums for special wood trims, mother-of-pearl inlays or even gold leaf finishes.

In 2024, for instance, JLR sold 20 "Sadaf" edition Range Rover Sport SV vehicles for about 330,000 pounds each - around three times the starting price in Britain.

Former Aston Martin AML.L CEO Andy Palmer said that during his tenure the first calls would be to offer wealthy collectors in the Middle East high-margin special editions.

"You almost didn't need to ask," Palmer told Reuters.

Now this bespoke business in the region has all but ground to a halt, industry executives said.

"People in the Middle East have other thoughts than looking for a new Bentley at the moment," Bentley CEO Walliser said.

'IT'S AN UTTER DISASTER'

As their U.S. sales have been hit by uncertainty over tariffs, demand in China and Europe has slumped, leaving high-end automakers with few remaining sources of growth and even contemplating the possibility of cutting production.

Even before the Iran war, Bentley's sales fell 5% last year, although the carmaker's CFO Axel Dewitz told reporters this month the company does not yet see the need to cut production.

"However, if the current crisis endures for a couple of weeks, I think we would need to revisit the situation," he said.

Lamborghini CEO Stephan Winkelmann said this month it has faced many challenges since the COVID-19 pandemic, adding that "there is no new American market out there that we can tap into to boost our sales volumes".

Sales in Russia halted after Moscow's invasion of Ukraine in 2022, the luxury market in China has "collapsed", tariffs have hit Lamborghini's most important market in the United States and now business is at a standstill in the Middle East, he said.

For former Aston Martin CEO Palmer, the situation is like no other he can remember.

"For a manufacturer of premium and luxury cars in particular, it's an utter disaster."

($1 = 0.7512 pounds)

($1 = 0.8693 euros)

(Reporting by Nick Carey;
Editing by Josephine Mason and Alexander Smith)

((nick.carey@thomsonreuters.com; +44 7385 414 954;))

March 27 (Reuters) - The following are the top stories in the Financial Times. Reuters has not verified these stories and does not vouch for their accuracy.

Headlines

• Pernod Ricard and Jack Daniel’s owner in talks to combine operations

• Jaguar Land Rover to shut UK plant for almost two weeks after supplier fire

• EU to impose fines on online platforms importing unsafe products

• Heathrow warns that third runway costs risk an HS2-style spiral

Overview

• French drinks maker Pernod Ricard PERP.PA is in talks to combine its business with the US owner of Jack Daniel's BFb.N whiskey in a deal that could create a transatlantic premium alcohol group.

• Tata Motors-owned Jaguar Land Rover TAMO.NS will shut down a UK plant for nearly two weeks due to a fire at its supplier in Norway in a fresh blow to the carmaker following last year’s one-month shutdown caused by a cyber attack.

• The European Union has agreed to allow member countries to impose fines on ecommerce platforms that import unsafe products into the bloc, in an effort to stem a flood of cheap Chinese goods from platforms like Temu and Shein.

• Heathrow has warned that the costs of its third runway project risk spiralling like High Speed 2, rail budget unless it puts in place greater safeguards over its spending.

(Compiled by Bengaluru newsroom)

((globalnewsmonitoring@thomsonreuters.com))

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))

March 20 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• TATA MOTORS - TO INCREASE PRICES OF PASSENGER VEHICLES FROM APRIL 1, 2026

• TATA MOTORS - WEIGHTED AVERAGE PRICE INCREASE OF 0.5% FOR ICE PORTFOLIO FROM APRIL 1, 2026

• TATA MOTORS PASSENGER VEHICLES - REVISION IS BEING UNDERTAKEN TO PARTIALLY OFFSET CONTINUED INCREASE IN INPUT COSTS

Source text: ID:nBSE8hsnJg

Further company coverage: TAMO.NS

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

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 16 (Reuters) - Tata Motors TATM.NS will raise prices of its commercial vehicles by up to 1.5% from April 1, the auto maker said on Monday, citing higher input costs.

This follows a price hike announced by Mercedes-Benz India MBGn.DE last week.

Here are some details:

* The price increase will be up to 1.5% across Tata Motors’ commercial vehicle range

* Hikes will vary depending on the model and variant

* The increase is aimed at partially offsetting rising commodity prices and other input costs

(Reporting by Aleef Jahan in Bengaluru; Editing by Mrigank Dhaniwala)

((aleefjahan.cs@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) -

• JAGUAR LAND ROVER: MAY OFFER USD‑DENOMINATED SENIOR NOTES IN UP TO TWO SERIES, WITH A 3‑YEAR AND/OR 5‑YEAR TENOR

Source text: https://media.jaguarlandrover.com/news/2026/03/jaguar-land-rover-automotive-plc-proposed-offering-senior-notes

Further company coverage: TAMO.NS

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

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;))

March 1 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• TATA MOTORS PASSENGER VEHICLES - FEBRUARY 2026 TOTAL SALES STOOD AT 63,331 UNITS

Further company coverage: TAMO.NS

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

Feb 24 (Reuters) -

• TATA SONS DEFERS BOARD MEETING - ET CITING SOURCES

• TATA SONS EXECUTIVE CHAIRMAN CHANDRASEKARAN ASKED FOR A DEFERMENT OF TALKS ON HIS REAPPOINTMENT - ET

Further company coverage: TATAS.UL

((Reuters.Briefs@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 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;;))

Feb 12 (Reuters) - Italian truck-maker Iveco IVG.MI posted a 28% drop in its full-year adjusted operating profit on Thursday, hit by weaker European truck demand and delays at a French bus plant.

The group, which is set to be acquired by India's Tata Motors TAMO.NS, said its adjusted operating profit fell to 645 million euros ($765 million) last year, from 892 million euros in 2024.

($1 = 0.8432 euros)

(Reporting by Laura Contemori; Editing by Milla Nissi-Prussak)

((Laura.Contemori@thomsonreuters.com;))

Feb 10 (Reuters) - Jaguar Land Rover is recalling 2,278 I-PACE SUVs in the U.S. as a high voltage battery may overheat, increasing the risk of a fire, the U.S. National Highway Traffic Safety Administration said on Tuesday.

"As an interim repair, the battery software will be updated by a dealer, or through an over-the-air (OTA) update to limit the state of charge to 90%", NHTSA said, adding that the final remedy is currently under development.

(Reporting by Rishabh Jaiswal in Bengaluru; Editing by Mrigank Dhaniwala)

((rishabh.jaiswal@thomsonreuters.com; +91 9916719147))

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))

Feb 5 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• TATA MOTORS PASSENGER VEHICLES Q3 CONSOL NET LOSS 34.86 BILLION RUPEES

• TATA MOTORS PASSENGER VEHICLES Q3 CONSOL TOTAL REV FROM OPS 701.08 BLN RUPEES

• TATA MOTORS PASSENGER VEHICLE ON JLR: FY26 GUIDANCE IS REAFFIRMED

• TATA MOTORS PASSENGER VEHICLE ON JLR: FY26 GUIDANCE OF EBIT MARGIN IN THE RANGE OF 0% TO 2% AND FREE CASH OUTFLOW OF £2.2BN TO £2.5BN

• TATA MOTORS PASSENGER VEHICLE ON JLR: INVESTMENT SPEND IS EXPECTED TO REMAIN AT £18BN OVER THE FIVE-YEAR PERIOD FROM FY24

• TATA MOTORS PASSENGER VEHICLE ON JLR: BUSINESS WELL POSITIONED FOR SIGNIFICANTLY IMPROVED PERFORMANCE IN Q4

• TATA MOTORS PASSENGER VEHICLES - OVERALL, WE EXPECT A SHARP IMPROVEMENT IN Q4, LED BY NORMALIZATION OF JLR VOLUMES

• TATA MOTORS PASSENGER VEHICLES - TATA MOTORS PV IS WELL POISED TO ACCELERATE ITS GROWTH TRAJECTORY IN FY27

• TATA MOTORS PASSENGER VEHICLES - Q3 RESULTS INCLUDE 15.97 BLN RUPEES ONE-TIME CHARGE

Further company coverage: TAMO.NS

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

The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Refiles to fix typo in advisory.

By Una Galani

HONG KONG, Feb 3 (Reuters Breakingviews) - Investment banking is a daunting business in Asia Pacific. The regional bosses of some Wall Street giants liken their job to corralling a loose confederation of mercenaries, or battling a three-headed monster. Such are the challenges of running a sprawling geography full of first-time fee payers, with mixed levels of financial sophistication among clients. As activity rebounds, though, the region seems to be at a positive inflection point, with many of its major markets firing up at once.

Globally, the art of dealmaking is back. The world's top executives are eyeing big acquisitions as borrowing costs fall and the shock of U.S. President Donald Trump's trade war recedes. In Asia Pacific, total investment banking revenue across deal advice, equity and debt underwriting hit almost $17 billion in 2025, according to Dealogic. That was below 2021's $22 billion level but better than in the intervening years. Volumes so far in 2026 look set to outpace the peak four years ago.

The investment banking business in Asia has changed since the slump. While China and Australia once dominated the action for Western firms, tensions between Washington and Beijing killed off the most lucrative businesses: Chinese outbound acquisitions and U.S. listings by firms from the People's Republic. That was a space Goldman Sachs GS.N and Morgan Stanley MS.N dominated, thanks to their powerful technology-industry franchises among other things.

Today, the fees up for grabs are more broad-based. Chinese firms have a pent-up demand for capital, especially in the booming innovation economy spanning artificial intelligence, biotechnology and robotics. Down Under, miners are riding another mergers and acquisition boom: JPMorgan JPM.N is among the advisers to Rio Tinto RIO.L on its hoped-for Glencore GLEN.L deal, which would create by far the world's largest mining company worth more than $200 billion.

There's also a steady stream of sizable deals coming from historically quieter countries. Take India, where the debut of Jio in Mumbai will likely take the crown for the region's largest 2026 initial public offering. Bankers are hoping to win Mukesh Ambani's telecom giant a valuation as high as $170 billion. In Japan, meanwhile, corporate governance reforms have stirred up a domestic M&A boom, making the country a top destination for buyout barons, led by Bain Capital and KKR KKR.N.

Helped by these two markets, Citigroup C.N closed 2025 with its best revenues in Asian investment banking for over a decade. The U.S. firm, which is turning itself around under CEO Jane Fraser, advised on Nippon Steel's 5401.T acquisition of U.S. Steel, and won mandates when South Korean firms Hyundai 005380.KS and LG 003550.KS listed their Indian businesses in Mumbai. Morgan Stanley for the second year running generated the most fees in the region, encompassing M&A, equity and debt underwriting. Among Western banks, JPMorgan followed.

The locals are growing ever more powerful, however, with Chinese banks like CITIC Securities 600030.SS rising up the rankings because of their dominance in certain onshore businesses that global firms don't compete for. It means the real addressable market for Wall Street firms in Asia is probably around half the overall regional pie.

In equity underwriting, fee rates are compressing, instead of trending higher towards U.S. levels. As a percentage of total proceeds, revenue plunged from nearly 3% in 2000 to barely 1.5% in 2024, LSEG data shows. Bankers say fees on convertibles and block trades remain resilient. But Hong Kong IPO activity is also now dominated by secondary listings by firms whose shares already trade on mainland bourses. That's less demanding work, and so it pays less. Morgan Stanley Asia Pacific CEO Gokul Laroia admits the problem, though stabilising, is "pretty systemic".

Quirky brokerage fees have helped to cushion the blow for banks. Investors buying shares in Hong Kong IPOs pay 1% to firms handling stock sales. The charge was rarely talked about in the good times. It was introduced over 30 years ago when brokers owned the bourse that is now operated by Hong Kong Exchanges and Clearing. The fee is not enough to compensate for wider compression, though. CATL's Hong Kong offering paid a 0.9% fee and 1% brokerage, for example, turning a derisory sum into one that's still nothing to brag about.

Meanwhile, outbound Chinese acquisitions - including Zijin Mining's 2899.HK bid for Allied Gold - are likely to remain a trickle given political sensitivities in Europe and North America. And other cross-border deals, such as UK drugmaker AstraZeneca's AZN.L licensing of weight-loss drugs from China's CSPC 1093.HK, involve only small upfront payments, capping the reward for bankers. In India, tycoons and state companies remain stingy fee payers and insist on building incentives into remuneration for capital-market deals. These clauses, which include variable components paid out depending on which investors are brought to a deal, are time-consuming to negotiate. Banks that are picky about their clients are better off. Hexaware HEXW.NS, backed by U.S. private equity firm Carlyle, paid a 2.5% fee for its Mumbai IPO. By contrast, Reliance's mega offering will offer banks more prestige than pay.

The biggest shift is in Japan. High levels of private equity-led M&A mean the country is taking a bigger slice of regional fees. Here, Morgan Stanley is the envy of its peers. Its joint venture since 2008 with Mitsubishi UFJ Financial 8306.T, which connects the Japanese lender's clients to investment bankers worldwide, underpins the Wall Street giant's top regional position. It also gives the U.S. investment bank extra heft outside of Japan: the duo came together to provide a $4.5 billion bridge loan for Tata Motor's TAMO.NS acquisition of Italy's Iveco, for example.

Morgan Stanley's partnership was underestimated when it was formed as part of a capital call for the U.S. bank during the global financial crisis. Replicating it now looks tricky. So to compete in Japan, global firms are ramping up their headcount and expanding their coverage - especially for the middle market, where the bulk of buyouts happen. Goldman's decision last year to combine its investment banking businesses in Australia, Japan, and the rest of Asia into a single, unified regional unit underscores the shifting pressures and opportunities for the bank run by David Solomon.

Geopolitical tension between the U.S. and China is also reshaping fortunes. Washington is allowing U.S. banks a wide berth: Morgan Stanley and Goldman, for example, advised on the Hong Kong IPO of artificial intelligence startup MiniMax this year. But Chinese clients are being selective. If they opt to have any international advisers on deals, they increasingly insist on using at least one non-U.S. firm. That's a tailwind for Switzerland's UBS UBSG.S and Deutsche Bank DBKGn.DE.

Investment banking activity in Asia may be lifting off. But extracting fees won't be easy for Wall Street firms.

Follow Una Galani on Linkedin and X.

CONTEXT NEWS

Asia Pacific core investment banking fees amounted to $16.5 billion in 2025, according to Dealogic. Core investment banking comprises equity capital markets, mergers and acquisitions and debt capital markets. It excludes loans. Fees peaked at a total of $21.8 billion in 2021.

(Editing by Liam Proud; Production by Shrabani Chakraborty)

((For previous columns by the author, Reuters customers can click on GALANI/ una.galani@thomsonreuters.com))

Feb 1 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• TATA MOTORS PV - SALES REACH 71,066 UNITS IN JANUARY 2026

Source text: ID:nNSEWg5QQ

Further company coverage: TAMO.NS

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

Jan 29 (Reuters) - India's top commercial vehicle maker Tata Motors TATM.NS reported a 60.4% decline in third-quarter profit on Thursday, hurt by a one-time charge.

The truck and bus manufacturer reported a profit of 5.61 billion rupees ($61 million) for the quarter to December 31, down from 14.17 billion rupees the year before.

The company took a one-time charge of 15.45 billion rupees due to demerger related costs and India's recently enacted labour code.

($1 = 91.9980 Indian rupees)

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

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

Repeats story from Wednesday, January 28 with no changes to text

By Shivangi Acharya and Aditi Shah

NEW DELHI, Jan 28 (Reuters) - India will immediately slash duties on high-end European cars to 30% from as high as 110% under its new trade deal with the EU, an official said, opening the tightly controlled market to luxury carmakers like BMW BMWG.DE and Mercedes-Benz MBGn.DE.

India and the European Union finalised a long-delayed deal on Tuesday that will cut tariffs on most goods and boost trade, at a time when governments worldwide are seeking to hedge against fickle U.S. policy and manage growing trade tensions.

India is the third-largest car market globally by sales after the United States and China. But its domestic auto industry has been among the world's most protected, with the government levying tariffs of between 70% and 110% on imported cars.

PRICIEST EUROPEAN CARS BENEFIT FROM BIGGEST DUTY CUTS

While India agreed under the deal to reduce import tariffs on cars above an import price of 15,000 euros ($17,963) to 10% over time, details of how the reductions will be implemented were not disclosed publicly.

A senior Indian government official, however, said New Delhi agreed to immediately reduce import duties on 100,000 traditional internal combustion engine cars annually split between three price categories.

European cars with an import price of 15,000 euros to 35,000 euros will see tariffs reduced to 35%, with annual imports capped at 34,000 units, said the official, who asked not to be named as the deal still requires legal vetting.

Cars priced 35,000 euros to 50,000 euros will be charged a 30% duty, with imports limited to 33,000 units a year, the official said. And 33,000 cars priced over 50,000 euros will also be subject to a reduced tariff of 30%.

The two highest price categories will see the largest tariff reductions. And the cap for all three categories combined will be raised to 160,000 units over 10 years, the official said.

India's trade ministry did not immediately respond to a request for comment on the details of the agreement.

MORE INDIANS DEVELOPING A TASTE FOR LUXURY

At a time when a growing number of Indians are developing a taste for opulence - from expensive homes to watches and even bathroom fittings - luxury cars made up less than 1% of the 4.4 million passenger vehicles sold in the country last year.

While executives have said that lower tariffs are unlikely to translate into immediate price cuts, they said the reductions will allow them to bring more vehicles to the market.

Lower import taxes should also be a boost for other European automakers such as Volkswagen VOWG.DE, Renault RENA.PA and Stellantis STLAM.MI, which have said increased trade will also result in increased technology transfer and shared supply chains.

LOCAL EV MANUFACTURERS TO REMAIN PROTECTED FOR NOW

India will, meanwhile, also cut import duties to 30% to 35% on a total of 20,000 European-made electric vehicles, the official said, but only five years after the trade deal is implemented.

Those tariff cuts will only apply to EVs priced above 20,000 euros in order to protect domestic players like Tata Motors TAMO.NS and Mahindra MAHM.NS.

Similar to combustion engines, the duty on EVs will reduce to 10% over five years and the annual import quota will rise to 90,000 units, the official added.

($1 = 0.8367 euros)

(Reporting Shivangi Acharya; Editing by Joe Bavier)

((shivangi.acharya@thomsonreuters.com))

Repeats with no changes to text

By Aditi Shah and Philip Blenkinsop

NEW DELHI/BRUSSELS, Jan 25 (Reuters) - India plans to slash tariffs on cars imported from the European Union to 40% from as high as 110%, sources said, in the biggest opening yet of the country's vast market as the two sides close in on a free trade pact that could come as early as Tuesday.

Prime Minister Narendra Modi's government has agreed to immediately reduce the tax on a limited number of cars from the 27-nation bloc with an import price of more than 15,000 euros ($17,739), two sources briefed on the talks told Reuters.

This will be further lowered to 10% over time, they added, easing access to the Indian market for European automakers such as Volkswagen, Mercedes-Benz and BMW.

The sources declined to be identified as the talks are confidential and could be subject to last-minute changes. India's commerce ministry and the European Commission declined to comment.

PACT ALREADY DUBBED 'MOTHER OF ALL DEALS'

India and the EU are expected to announce on Tuesday the conclusion of protracted negotiations for the free trade pact, after which the two sides will finalise the details and ratify what is being called "the mother of all deals.

The pact could expand bilateral trade and lift Indian exports of goods such as textiles and jewellery, which have been hit by 50% U.S. tariffs since late August.

India is the world's third-largest car market by sales after the U.S. and China, but its domestic auto industry has been one of the most protected. New Delhi currently levies tariffs of 70% and 110% on imported cars, a level often criticised by executives, including Tesla chief Elon Musk.

New Delhi has proposed slashing import duties to 40% immediately for about 200,000 combustion-engine cars a year, one of the sources said, its most aggressive move yet to open up the sector. This quota could be subject to last-minute changes, the source added.

Battery electric vehicles will be excluded from import duty reductions for the first five years to protect investments by domestic players like Mahindra & Mahindra MAHM.NS and Tata Motors TAMO.NS in the nascent sector, the two sources said. After five years EVs will follow similar duty cuts.

MARKET CURRENTLY DOMINATED BY SUZUKI AND LOCAL MAKERS

Lower import taxes will be a boost for European automakers such as Volkswagen VOWG.DE, Renault RENA.PA and Stellantis STLAM.MI, as well as luxury players Mercedes-Benz MBGn.DE and BMW BMWG.DE which locally manufacture cars in India but have struggled to grow beyond a point in part due to high tariffs.

Lower taxes will allow carmakers to sell imported vehicles for a cheaper price and test the market with a broader portfolio before committing to manufacturing more cars locally, said one of the two sources.

European carmakers currently hold a less than 4% share of India's 4.4-million units a year car market, which is dominated by Japan's Suzuki Motor 7269.T as well as homegrown brands Mahindra and Tata that together hold two-thirds.

With the Indian market expected to grow to 6 million units a year by 2030, some companies are already lining up new investment.

Renault is making a comeback in India with a new strategy as it seeks growth outside Europe, where Chinese carmakers are making strong inroads, and Volkswagen Group is finalising its next leg of investment in India through its Skoda brand.

(Reporting by Aditi Shah and Philip Blenkinsop; Additional reporting by Lili Bayer in Brussels, with Shivangi Acharya in New Delhi; Editing by David Holmes)

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

Adds graphics, no change to text

By Gilles Guillaume and Aditi Shah

PARIS/NEW DELHI, Jan 23 (Reuters) - France's Renault RENA.PA is banking on the cult following of its Duster SUV to help revive its Indian business, bringing back a nameplate that had better brand-recognition than the automaker itself before regulatory change led to its demise.

The smallest by sales of so-called legacy automakers plans to elevate its line-up to more premium models under new CEO Francois Provost, who is tasked with growing Renault globally as Chinese rivals make inroads into its core European market.

Under the strategy, which has not previously been reported in detail, Renault will target wealthier rather than entry-level drivers as it seeks to recover market share that has dwindled over the past decade to less than 1% from a high of 4%.

It will begin on January 26 - India's Republic Day - by unveiling a Duster built to current safety and emission regulations as well as latest tastes and needs, Reuters has learned in interviews with Provost as well as five company sources and suppliers. That will be followed by a larger SUV like its Dacia Bigster and an electric vehicle, sources said.

"Previously, our strategy was to offer a car to all Indians. That is not my strategy," Provost, CEO since the summer when Renault lowered its profit forecasts, said in an interview. "I am targeting the middle class, which is growing in India and wants competitively priced but attractive cars."

Renault will also begin sourcing components in India for vehicles built in other markets, mainly South America, Provost said, akin to peers such as Stellantis STLAM.MI, Volkswagen VOWG.DE and Honda 7267.T.

The automaker now has full ownership of a factory in southern India that it once shared with Nissan and which has an annual capacity of 500,000. It will continue building cars for Nissan until 2032 and is evaluating the potential for export.

INDIA SET FOR GROWTH SURGE

The India revival is aimed at increasing sales beyond Europe. Last year Renault derived almost 70% of sales from the slow-growing region, made increasingly competitive with the influx of Chinese entrants such as EV leader BYD 002594.SZ.

Renault has launched a number of bestselling vehicles in recent years but profit margin pressure has weighed on its share price, dragging its valuation to around 10 billion euros ($11.69 billion), less than half that of Stellantis.

Last year, the French carmaker lifted non-European sales by nearly 12% by expanding in Latin America and South Korea. However, prospects in India could be even greater.

Sales in the world's third-largest car market are set to touch 6 million by 2030, up 36% from 2025, S&P Mobility data showed, with a rapid increase in demand for SUVs and premium vehicles. That forecast takes into account tough investment rules that shut out Chinese carmakers.

"Renault needs to solidify its market share in its high-growth markets," said Alexis Albert, equity fund manager at DNCA Finance, a Renault investor. Mature markets like Europe are unlikely to grow significantly, he said.

RISE OF THE SUV

Renault entered India in 2005 and had its first hit in 2012 as the competitively priced Duster SUV stood out in a market dominated by hatchbacks and sedans.

By 2016, it held 4% of the passenger vehicle market, making India one of its top 10 locations. However, it pulled the Duster almost five years ago, baulking at the cost of bringing it in line with new emissions standards.

In the meantime, India has seen a raft of SUVs from domestic makers such as Mahindra & Mahindra MAHM.NS and Tata Motors TAMO.NS, as well as South Korea's Hyundai Motor >.

The category accounts for more than half of the Indian market versus 10% when the Duster first launched, Renault said.

"This will be Renault's third attempt" at making a splash in India after the Duster and ultra-low-cost Kwid, said former Nissan COO Andy Palmer. "I think four times would be beyond everybody, because then everybody knows that you're not serious about doing it properly."

MAKE OR BREAK

Renault plans to at least double its India line-up, which consists of the Kwid and small cars Kiger and Triber.

Sales of the Duster are likely to begin in February and will be available with a hybrid powertrain for the first time in India, said one of the sources, who all declined to be identified as they were not authorised to speak with media.

Considering the faith placed in the Duster name, that SUV represents a make-or-break proposition, the person said.

Renault expects Duster production to reach 130,000 to 140,000 vehicles annually, three suppliers said, potentially more than tripling its 2025 India sales.

Like all automakers, Renault needs to update or introduce new models every six months to keep customers engaged, said S&P Global auto analyst Gaurav Vangaal. There is also the need for "an aggressive sales strategy supported by a robust customer follow-up process" to keep the momentum going, he said.

Under its broader international game plan, Renault said it will spend 3 billion euros by 2027 launching Renault-brand models in India, Latin America, South Korea, Turkey and North Africa. It declined to comment on how much it will commit only to India, a market where rival Suzuki 7269.T plans to invest $8 billion and Hyundai $6 billion.

Provost, a 57-year-old insider who previously ran operations in Russia, South Korea and China, said capturing even a small slice of the Indian market would be a game-changer for Renault.

"I would be delighted to achieve 5% of a 6 million car market," Provost said.

(Reporting by Gilles Guillaume and Aditi Shah; Additional reporting Nick Carey in London; Editing by Dominique Patton, David Dolan and Christopher Cushing)

((dominique.patton@thomsonreuters.com))

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

By Shritama Bose

MUMBAI, Jan 15 (Reuters Breakingviews) - China-India ties are beginning to thaw. New Delhi may lift a five-year-old ban on companies from the People's Republic bidding for official contracts to revive commercial ties with its neighbour. That potentially paves the way to further lift curbs on Chinese investments too, but any easing will be capped by both sides.

India is planning to scrap restrictions, imposed after a deadly 2020 border clash, on Chinese bidders in government infrastructure and other projects, Reuters reported on January 8, citing sources. Alongside smoother visa approvals, it signals willingness to reciprocate China's gradual easing of export curbs on rare earth magnets after Indian Prime Minister Narendra Modi's visit to China in September.

The urgency to go further is rising. Net foreign direct investment into the country fell in the year to March 2025, though that is starting to pick up. Even so, strained bilateral ties with Washington mean the $4 trillion economy is grappling with a 50% tariff on exports to the United States, its top trading partner.

Moreover, despite border tensions, India's trade deficit with China has doubled over the last five years to $99 billion for the year ended March 2025. Under the current policy of applying extra scrutiny on Chinese-origin investments, the approval rate is just 15%, a person familiar with the matter told Breakingviews, implying a decent pipeline of investments waiting in the wings.

An easy place to start would be in manufacturing. Local smartphone operations from Apple AAPL.O to Xiaomi 1810.HK, for example, rely on mostly low-tech machinery, chips, displays, batteries and other inputs imported from China. Allowing some of those suppliers to set up factories in India makes sense. The same is true for textiles and plastics.

Yet trust issues persist. New Delhi is unlikely to open the floodgates in strategic sectors where it wants to protect its own domestic firms. In solar power, Adani Enterprises ADEL.NS has invested huge sums but remains highly dependent on Chinese panel makers. That might open a door for firms like JinkoSolar JKS.N and Longi Green Energy 601012.SS to establish a toehold in the market.

But in other areas like electric vehicles, India's appetite for Chinese investments will reach its limits. The $120 billion BYD 002594.SZ is hoping to manufacture in India but faces opposition from established groups like Mahindra & Mahindra MAHM.NS and Tata Motors Passenger Vehicles TAMO.NS.

Officials might demand BYD build its marques and batteries from scratch locally, potentially in partnership with an Indian group. That would require a degree of technology transfer that Chinese firms are unlikely to agree to: Bloomberg reported on Monday, citing sources, that Reliance Industries RELI.NS has paused plans to build lithium-ion batteries after it failed to license technology from Xiamen Hithium Energy, which the Indian group denies.

India's courting of Chinese capital only goes so far.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

India's Ministry of Finance plans to scrap five-year-old restrictions on Chinese firms bidding for government contracts, Reuters reported on January 8, citing two unnamed official sources.

New Delhi is weighing a proposal to exempt offshore investments for holdings of up to 26% in local companies from additional screening requirements introduced in 2020, Mint newspaper reported on January 1, citing two unnamed people familiar with the matter. The exemption will apply as long as the foreign entity exercises no management control and holds no seat on the company’s board, the report added.

(Editing by Robyn Mak; Production by Ujjaini Dutta)

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