Tata MotorsPassenger

July 15 (Reuters) -

• INDIA AUTO INDUSTRY BODY SIAM - INDIA'S JUNE TOTAL DOMESTIC PASSENGER VEHICLE SALES 3,88,144 UNITS

• SIAM - INDIA'S JUNE 2-WHEELER SALES 18,51,400 UNITS

• SIAM - INDIA'S JUNE 3-WHEELER SALES 77,951 UNITS

• SIAM - OVERALL CONSUMER SENTIMENT AND DEMAND REMAIN STEADY AT PRESENT

• SIAM: INDUSTRY CONTINUES TO CLOSELY MONITOR GEOPOLITICAL DEVELOPMENTS AND PROGRESS OF MONSOON

Further company coverage: ASOK.NS

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Rewrites throughout with comments from president of auto dealers' body

By Kashish Tandon

July 6 (Reuters) - India's appetite for electric, hybrid and compressed natural gas vehicles accelerated after the Iran war triggered fuel price hikes, the president of the country's auto dealers' body said, with such models reaching a record share of passenger vehicle sales in June.

Alternative-fuel vehicles accounted for 40.35% of PV retail sales in June, up from about 38% a month earlier, as consumers increasingly sought cheaper running costs after petrol and diesel prices were raised several times in May.

"We need to watch whether this is an emotional knee-jerk reaction from customers or whether this growth is here to stay," C.S. Vigneshwar, president of the Federation of Automobile Dealers Associations (FADA), told Reuters on Monday.

Overall vehicle sales rose 21.8% to a record 2.6 million units, with PV sales rising 28.6% year-on-year to 410,853 units.

Among PVs, CNG models accounted for 24.3% of total sales, while hybrids made up 8.3% and electric vehicles 7.8%.

Industry leader Maruti Suzuki MRTI.NS said last month that bookings for its CNG cars jumped 40% since the fuel price hikes.

The share of electric vehicles among overall two-wheeler sales rose to 10.6%, hitting the double-digit mark for the first time, according to FADA.

While the worst of the crude shock and supply chain disruptions from the Iran war seemed to be over, a return to complete normalcy could still take "a few quarters" and may involve some cost implications, said Vigneshwar.

(Reporting by Kashish Tandon in Bengaluru; Editing by Rashmi Aich, Mrigank Dhaniwala and Janane Venkatraman)

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Tata Motors Passenger Vehicles Ltd informed the stock exchanges that it will hold a virtual group meeting on July 3, 2026, at 5:00 p.m. IST with a group of analysts and institutional investors. The list of attendees includes Helios Capital Management Pte. Ltd., along with several other asset managers and insurance companies. The company noted that the schedule is subject to change.

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By Aditi Shah

NEW DELHI, June 29 (Reuters) - India's capital New Delhi will offer a cash incentive of over$1,000 to car owners willing to scrap their old vehicle for an EV, according to a new policy finalised by the government on Monday in a move aimed at reducing high levels of air pollution.

New Delhi is one of the world's most polluted cities with air quality worsening in the winters when dense, stagnant air traps emissions from crops burning in neighbouring states, vehicle exhaust and construction dust.

Here are some details:

• The local government in New Delhi finalises new electric vehicle policy with an outlay of 150 billion rupees ($1.59 billion) over four years to incentivise buyers of electric two-wheelers, cars and small trucks, as well as setting up EV chargers.

• To offer $1,060 as scrapping incentive to those who trade in cars bought before April 1, 2020 for an EV.

• Those buying a battery EV priced at up to 3 million rupees will be exempt from paying road tax and registration fees, which typically amount to 4%-10% of the car's price.

• Buyers of electric scooters and motorbikes will get a cash incentive of 30,000 rupees in the policy's first year, reducing to 10,000 rupees by year three.

• Delhi government will only register electric two-wheelers from April 1, 2028, forcing buyers to move away from gasoline and other powertrains.

• Will also incentivise setting up 32,000 EV charging points across Delhi.

• Hybrid vehicles have not been included in the policy which is expected to come into effect from July 1.

• Policy will provide a big boost to EV players like Tata Motors TAMO.NS and Mahindra & Mahindra MAHM.NS as well as electric two-wheeler makers TVS Motor TVSM.NS, Bajaj Auto BAJA.NS and Ather Energy.

(Reporting by Aditi Shah; Editing by Susan Fenton)

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June 25 (Reuters) - Tata Motors-owned TAMO.NS Jaguar Land Rover is recalling 250,857 SUVs in the U.S. over an air bag defect that could increase the risk of injury in a crash, the U.S. National Highway Traffic Safety Administration said on Thursday.

• The recall covers certain Land Rover Defender, Discovery, and Range Rover SUVs, the U.S. auto safety regulator said.

• The driver's air bag clockspring connector may corrode, preventing the air bag from deploying as intended, it said.

• Dealers will apply a protective lubricant gel to the connector terminals free of charge, the regulator said.

(Reporting by Bipasha Dey in Bengaluru; Editing by Subhranshu Sahu)

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By Aditi Shah

NEW DELHI, June 24 (Reuters) - Chinese automakers may be shut out of India, but their electric-vehicle technology is starting to make inroads in the world's third-largest car market.

New Delhi has largely blocked Chinese companies from entering the market since 2020 and now Beijing is clamping down on the export of its tech know-how. Yet ties between the two countries' carmaking industry are only growing.

Tata Motors said earlier in June it will use Chery's carmaking platform to manufacture premium EVs in India. The deal doesn't involve an equity stake, and both companies stressed it is a supply arrangement without any transfer of technology know-how to Tata, highlighting the political sensitivities.

India ramped up scrutiny of Chinese businesses after a 2020 border clash between the two countries killed soldiers on both sides. While New Delhi and Beijing are working to improve ties, some friction remains.

"If India wants to expand its manufacturing sector and be a bigger part of the global supply chain, partnership with China is inevitable. If Chinese companies want to be global leaders, they cannot wish away India and its economic potential," said Santosh Pai, partner at law firm Dentons Link Legal.

For Tata, India's third-largest automaker, Chery's platform offers a quicker way to launch EVs. Tata plans to eventually shift from relying on imported kits from China to developing components locally - a move seen favourably by some Indian policymakers because it would boost Indian manufacturing.

"We are supportive of deals that lead to more local manufacturing or supply-chain shifts down the road. That is a good way to approach China," said a senior Indian government official.

For Chinese carmakers grappling with a slowdown at home and excess manufacturing capacity, such deals could be the answer to boosting revenue without violating Beijing's export control orders.

Tata TAMO.NS and Chery 9973.HK did not respond to requests for comment.

GROWING MARKET

The Tata-Chery deal shows that, despite its best efforts, India can't keep China's EV industry completely out.

The world's most advanced EV industry is likely to continue to make inroads into India, a huge and still growing market.

That's bad news for Japanese automakers and others who are investing big in India – in part because they don't face major competition from Chinese rivals there now.

Chinese EV makers understand the importance of gaining a foothold in India through such supply deals, said Gao Hua, a former director at China SAE and now an independent analyst.

"If Chinese firms don't participate, others from different countries will step in," Gao said.

Chinese partnerships are increasingly appearing in sectors long dominated by Japanese, Korean and European firms, and they are challenging the incumbents with technologies that many analysts say are cheaper and faster to deploy.

For instance, Indian component maker Uno Minda UNOI.NS has a joint venture with China's Inovance 301656.SZ to manufacture EV powertrains in India - a sector where Bosch BOSH.NS, Nidec 6594.T and Aptiv APTV.BN are already present.

BATTERY CO-OPERATION HALTED

Technology licensing deals between India and China started to gain traction in the aftermath of the 2020 investment restrictions.

But it wasn't all smooth sailing. In 2025, Beijing's export control curbs in retaliation to Trump's tariffs, forced Indian battery maker Amara Raja AMAR.NS to end its licensing deal with China's Gotion 002074.SZ for lithium-ion cell technology for EV batteries.

"All technical collaboration has stopped," Amara Raja's executive director Vikramadithya Gourineni told Reuters.

"The main things we were able to take away was understanding on factory and line layouts, technology roadmaps ... and connecting to the vendor base," Gourineni said.

Because the licensing deal was no longer possible, Amara Raja is instead ramping up investment in in-house R&D and talent, he said.

The company is now importing equipment, battery cells and other material from Chinese suppliers to meet its cell manufacturing ambitions, but it struggles to get enough visas for engineers to come from China for operational support.

CHERY'S OTHER INDIAN PARTNER

Last year, steel-to-cement billionaire Sajjan Jindal's maiden carmaking venture, JSW Motor, agreed to a partnership with Chery similar to Tata's.

Under the deal, JSW has secured rights to use and adapt multiple Chery platforms to build a range of hybrids and EVs for India, sources familiar with the plans told Reuters. This involves an upfront payment of about 20 billion rupees ($209 million) plus royalties, one of the people added.

JSW, which is investing $3 billion in the venture, is targeting sales of 300,000 vehicles by 2030, the sources said.

The initial vehicles will largely come as imported kits from Chery with JSW gradually building out an Indian supply chain and scaling up car production at its factory in western India, they added.

JSW Motor and Chery did not respond to requests for comment.

"This highlights the importance of nuanced approaches. Cutting ties is not always the best option," Gao said.

(Reporting by Aditi Shah in New Delhi and Zoey Zhang in Shanghai, additional reporting by Shivangi Acharya in New Delhi; editing by David Dolan and Stephen Coates)

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Tata Motors Passenger Vehicles Ltd laid out a five-year strategy targeting ₹1,40,000 crore in revenue by FY31, more than double the ₹58,500 crore it posted in FY26, with an EBITDA margin goal of 10%. The company plans to expand its product portfolio to 15 nameplates from the current nine, invest in capacity to reach 1.3 million units annually, and drive 5-6% cost reduction in internal combustion engine vehicles while deepening cost cuts in electric vehicles. Management also targeted a market share of 20% by FY31, up from around 14-15% currently, with electric vehicles expected to contribute 30% of its volumes. The strategy includes an accelerated network expansion to double sales outlets and triple service centres over five years.

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June 23 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• TATA MOTORS PASSENGER VEHICLES- EXPECTS 15% CAGR VOLUME GROWTH OVER FY26 TO FY31

• TATA MOTORS PASSENGER VEHICLES- EXPECTS 5%-6% INCREASE IN MARKET SHARE OVER FY26 TO FY31

• TATA MOTORS PASSENGER VEHICLES - SEES EBIT MARGIN AT 10% IN FY31

• TATA MOTORS PASSENGER VEHICLES- WILL EXPAND ANNUAL PRODUCTION CAPACITY TO 1.3 MILLION WITHIN 2–3 YEARS

• TATA MOTORS PASSENGER VEHICLES - SEES REVENUE OF MORE THAN 6 TRLN RUPEES IN FY31

Source text: ID:nBSE1QH3wd

Further company coverage: TAMO.NS

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Adds details of price hikes paragraph 2 onwards

June 18 (Reuters) - India's Tata Motors TATM.NS said on Thursday it would increase prices across its commercial vehicle range by up to 2.5%, effective July 1, its second hike in three months as automakers grapple with rising costs from the Middle East war.

The hike is aimed at partially offsetting the impact of rising commodity prices and other input costs, the demerged commercial vehicle arm of the Tata group said.

It had raised prices of its commercial vehicles by up to 1.5% from April 1, also citing higher input costs.

Automakers in India have raised prices in recent months as they seek to cushion the impact of higher raw material costs, including steel and other commodities, amid war-linked cost pressures.

Last week, Tata Motors Passenger Vehicles TAMO.NS said it would raise prices of its cars and SUVs, including electric vehicles, by up to 1.5% from July 1, its second hike in four months.

Rival automaker Maruti Suzuki MRTI.NS raised vehicle prices by up to 30,000 rupees ($314.42) from June, while Hyundai Motor India HYUN.NS also increased prices from June 1.

(Reporting by Chandini Monnappa in Bengaluru; Editing by Sonia Cheema)

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Recasts with details from the investor presentation

By Aditi Shah

NEW DELHI, June 17 (Reuters) - Jaguar Land Rover will prioritise growth in the U.S. as it seeks to counter weakness in its traditional stronghold of China, but will deliver only a 4% profit margin, it said on Wednesday, sending shares of its Indian parent Tata Motors tumbling.

The British carmaker's plan to rebuild profitability and cut costs fell short of investors' expectations, triggering a selloff with shares of Tata Motors TAMO.NS falling by as much as 10%. JLR contributes about 80% of Tata's revenues.

In line with weakness across the auto sector, the Range Rover manufacturer has navigated a difficult year. Challenges have included U.S. trade tariffs, a cyberattack that halted production, and cost and supply chain disruptions due to the Iran war.

JLR's profit margin fell to 0.7% last fiscal year from near double-digits in earlier years. While a 4% forecast for the current year is an improvement, it is far from the 10% margin the company had targeted.

A 'HYPER-FOCUS' ON THE US

JLR, however, said it hopes a "hyper focus" on the U.S., where a wealthy elite is boosting demand for luxury, will allow it to sell high-margin products and boost profits.

"Our aspiration, in the coming years, is to grow our U.S. business to the size of the entire JLR business as it exists today," CEO PB Balaji said in a press note.

Through its partnership with Stellantis, JLR will expand in the North American market where it has no manufacturing presence, marking a shift from China.

The world's largest car market, China was a major source of growth for JLR, but a combination of economic weakness there and a cutthroat local industry has made it much harder for international companies to compete.

The recovery plan also includes a diversification of its strategy for powertrains needed for EVs. The carmaker plans to invest in hybrid technology for its Range Rover, Defender and Discovery brands, which largely run on conventional fuel, as it seeks to counter a slowdown in electrification globally.

JLR reiterated plans to cut $2.3 billion in costs over two years and reduce volumes required for breakeven to 300,000 units from 425,000 units earlier. It maintained an £18 billion ($24.12 billion) investment plan from fiscal 2024.

($1 = 0.7462 pounds)

(Reporting by Aditi Shah, Urvi Dugar and Bharath Rajeswaran in Bengaluru; Editing by Harikrishnan Nair, Eileen Soreng and Barbara Lewis)

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June 16 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• TATA MOTORS PASSENGER VEHICLES ON JLR: EXTERNAL ENVIRONMENT REMAINS BOTH CHALLENGING AND VOLATILE

• TATA MOTORS PASSENGER VEHICLES: WILL RAMP UP PRODUCTION TO MEET DEMAND

• TATA MOTORS PASSENGER VEHICLES: GEOPOLITICAL DEVELOPMENTS REMAIN KEY MONITORABLE TO MITIGATE POTENTIAL SUPPLY-SIDE, COMMODITY PRICE RISKS

• TATA MOTORS PASSENGER VEHICLES: EXPECT TO BUILD ON MOMENTUM OF H2, CONTINUE TO DELIVER PROFITABLE GROWTH IN FY27

• TATA MOTORS PASSENGER VEHICLES: WILL MITIGATE MARGIN HEADWINDS THROUGH STRUCTURAL COST REDUCTIONS

• TATA MOTORS PASSENGER VEHICLES- INTENDS TO INVEST 90 BILLION RUPEES AT CO'S MANUFACTURING FACILITY IN TAMIL NADU

• TATA MOTORS PASSENGER VEHICLES - LOOKING AHEAD, DOMESTIC DEMAND CONTINUES TO SUSTAIN, LED BY GROWTH IN SUVS, CNG AND EV

• TATA MOTORS PASSENGER VEHICLES - IN DOMESTIC PV, EV BUSINESS, CO ASPIRES TO ACHIEVE 18-20% MARKET SHARE, DELIVER DOUBLE-DIGIT EBITDA MARGINS

• TATA MOTORS PASSENGER VEHICLES - COMMITTED TO INTRODUCING 5 NEW EV MODELS BY FY30 AS PART OF LONG-TERM ELECTRIFICATION STRATEGY

• TATA MOTORS PASSENGER VEHICLES - WILL PRIORITISE DEVELOPMENT OF SOFTWARE DEFINED VEHICLES, INCLUDING AUTONOMOUS, CONNECTED

• TATA MOTORS PASSENGER VEHICLES - PLAN TO INVEST 330-350 BILLION RUPEES FOR PV AND EV BUSINESS BETWEEN FY26-FY30

• TATA MOTORS PASSENGER VEHICLES - PV, EV INVESTMENT TO BE FUNDED VIA INTERNAL CASH ACCRUALS, ADDITIONAL NEEDS TO BE MET VIA DEBT, GOVERNMENT INCENTIVES

Source text: [ID:]

Further company coverage: TAMO.NS

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June 15 (Reuters) -

• INDIA AUTO INDUSTRY BODY SIAM - INDIA'S MAY TOTAL DOMESTIC PASSENGER VEHICLE SALES 4,38,854 UNITS

• SIAM - INDIA'S MAY 3-WHEELER SALES 70,720 UNITS

• SIAM - INDIA'S MAY 2-WHEELER SALES 19,02,209 UNITS

• SIAM - LOWER BASE EFFECT OF PREVIOUS MAY, DEMAND CREATED DUE TO REDUCED GST RATES GETTING REFLECTED IN HIGHER OFF-TAKE THIS MONTH

Further company coverage: ASOK.NS

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June 12 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• TATA MOTORS PASSENGER VEHICLES - TO INCREASE PRICES OF CARS AND SUVS FROM JULY 1, 2026

• TATA MOTORS PASSENGER VEHICLES - TMPV TO INCREASE PRICES OF ICE AND EV VEHICLES BY UP TO 1.5% FROM JULY 1, 2026

• TATA MOTORS PV- PRICE REVISION IS BEING UNDERTAKEN TO PARTIALLY OFFSET IMPACT OF RISING INPUT COSTS AND SUSTAINED INFLATIONARY PRESSURES

• TATA MOTORS PASSENGER VEHICLES - EXTENT OF PRICE INCREASE WILL VARY ACROSS MODELS AND VARIANTS

Source text: ID:nNSE6729hK

Further company coverage: TAMO.NS

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June 8 (Reuters) - Ashok Leyland Ltd ASOK.NS:

• INDIA AUTODEALERS BODY FADA: MAY OVERALL AUTO RETAIL SALES ROSE 9.55% Y/Y

• INDIA’S FADA:MAY PASSENGER VEHICLE RETAIL SALES ROSE 23.25% Y/Y

• INDIA’S FADA:MAY COMMERICAL VEHICLE RETAIL SALES ROSE 5.29% Y/Y

• INDIA’S FADA: MAY TWO-WHEELERS RETAIL SALES ROSE 7.54% Y/Y

Source text: [ID:]

Further company coverage: ASOK.NS

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Adds details from Tata statement in paragraphs 2 and 8

By Aditi Shah

NEW DELHI, June 3 (Reuters) - Tata Motors TAMO.NS plans to license an automaking platform from China's Chery 9973.HK, four people familiar with the matter told Reuters, as the Indian car company seeks to get its delayed premium EVs back on track.

Tata told Reuters in a statement it will leverage the Freelander platform produced in a joint venture between Chery and Jaguar Land Rover in China, with the cars being manufactured at its newly opened factory in Tamil Nadu in southern India.

While Chinese carmakers remain largely shut out of the world's third-largest auto market, their technology is quietly becoming hard to avoid, as local manufacturers lean on it to stay competitive in the global EV race.

Tata, India's biggest electric carmaker, will use Chery's platform to locally build EVs under its premium Avinya brand with plans for at least two cars, the first of which will be launched in 2027, three of the people said.

The strategy marks a pivot from Tata's original plan to use JLR's electrified modular architecture (EMA) for Avinya models targeted for 2025. That roadmap collapsed last year when JLR shelved plans to build EMA-based EVs in India, forcing Tata into a reset, Reuters previously reported.

Chery's platform deal is expected to make up for the lost time, granting Tata access to advanced features and technology it would otherwise take longer and more capital to develop, the people said.

The first Avinya model on Chery's platform is due in 2027 and will be shipped from China as a kit and assembled in India, two of the people said, with efforts to source localised components already underway. A second EV is due for launch in 2029, with scope for two more vehicles beyond that, one of them said.

"Avinya is being developed as a global premium brand. Our collaboration with JLR and its partners will be an important pillar of our global premium EV journey," Tata said, adding that this deal will deliver the desired proposition for its luxury EV segment at scale.

Chery told Reuters in a statement that its agreement with Tata builds on the success of its collaboration with JLR.

"Chery will act as a supplier to Tata Motors Passenger Vehicles. Each project operates under its own separate agreement with standard commercial terms," the Chinese carmaker said.

JLR has tapped Chery, a longtime partner, to develop and build electrified cars, including EVs and hybrids, under its resurrected Freelander brand. The cars will be based on the Chinese company's architecture and built at its factory in Changshu.

The deal with Chery is a "stop-gap arrangement" because without fresh products, Tata risks losing its EV lead, one of the people said, adding the company still intends to develop its own dedicated platform over time.

All of the people declined to be identified because they are not authorised to speak to the media.

INDIAN COMPANIES LEAN ON CHINESE TECH

Electric models make up 14% of Tata's total sales with a target to more than double that to 30% by 2030. But rivals Mahindra & Mahindra MAHM.NS and JSW MG Motor are closing in on its lead, exposing gaps in its EV line-up and raising the risk of further market share losses.

The deal talks reflect a broader shift underway in India's automotive industry. India's automakers are increasingly importing China's EV technology while avoiding deeper equity partnerships due to political sensitivities.

Since 2020, New Delhi has placed strict curbs on investment from neighbouring nations mainly targeted at China, effectively freezing large-scale participation in the auto industry. While restrictions have eased slightly in sectors like electronics, carmakers still face high barriers.

JSW Motor, the independent carmaking venture of steel-to-cement billionaire Sajjan Jindal, also has a similar platform licensing deal with Chery.

Indian car companies have increased their spending on research and development of new technologies and powertrains in recent years, but like many global peers they are unable to match China's speed, cost and tech prowess in EVs.

Chery, China's largest car exporter, has rapidly expanded its global footprint.

Drawing on inspiration from Toyota and Tesla, the Chinese automaker has pursued joint manufacturing arrangements with foreign companies across key markets, including Europe, Southeast Asia and Latin America.

(Reporting by Aditi Shah and Zhang Yan; Editing by David Dolan, Shri Navaratnam and Kevin Buckland)

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

By Shritama Bose

MUMBAI, June 2 (Reuters Breakingviews) - Forcing an initial public offering of the Tata conglomerate's holding company would be a clumsy application of rules designed to reduce shadow banking risks. It could also sting the Indian government as it would curb the financial flexibility of the $270 billion cars-to-chips group when New Delhi most needs agility from its corporate behemoths.

A listing risk has hung over Tata Sons since 2021, when the Reserve Bank of India refreshed its rulebook, following the collapse of Infrastructure Leasing & Financial Services, a major non-bank lender. The RBI enhanced capital requirements for large shadow banks and mandated listings to increase transparency. Tata Sons is registered as a core investment company, which the RBI counts as a category of shadow banks.

Tata Sons has since taken extensive steps to address potential risks. Last year it completed a $13 billion IPO of Tata Capital TATC.NS, a small non-bank financial company; cut its quasi-lending exposure by reducing the value of so-called “letters of comfort” issued to subsidiaries’ creditors by 60% in the two years to March 31, 2025; and moved from a net debt to net cash position as of March 2024. Yet the RBI’s latest update implies Tata Sons will still need to list after July 1.

The latest pushback comes from Noel Tata, chair of Tata Trusts which owns 66% of Tata Sons. He's written to the RBI saying a listing would shift the holding company’s priorities from long-term institution-building to catering to shorter-term market expectations, Moneycontrol reported on June 1, citing people familiar with the matter.

That's a real risk; Tata's big bet on building an indigenous chip industry may not have materialised if Tata Sons was a public company. What's more, a Tata Sons IPO would not significantly increase transparency. Most of its large investments already trade as public companies, including $85 billion Tata Consultancy Services TCS.NS, $38 billion Titan TITN.NS and $15 billion Tata Motors TAMO.NS.

But a forced IPO would crystallise a huge conglomerate discount. For investors, owning a holding company is usually less attractive than buying listed subsidiaries that provide direct exposure to a desired industry. In Asia, these discounts can be as high as 50%: Tata Sons held assets worth an estimated 1.75 trillion rupees ($18.42 billion) as of March 2025.

To be sure, Tata Sons has its problems. Minority shareholder Shapoorji Pallonji Group wants liquidity for its 18% stake and skirmishes among Tata Sons board members have intensified since the death of Ratan Tata, the group's chair emeritus. The RBI diktat is making matters worse.

New Delhi may also stand to lose from broadening out Tata Sons' shareholder base. The group's 2022 purchase of Air India, the bleeding national carrier that has lurched from crisis to crisis, would have been hard to justify to external investors. On balance, an IPO would enforce rules to the letter but achieve little else.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Tata Trusts Chair Noel Tata has written to the Reserve Bank of India opposing any potential listing of Tata Sons, news website Moneycontrol reported on June 1, citing unnamed people directly aware of the matter. He argued that going public could alter the long-term character of the Tata group’s holding company and disrupt the philanthropic objectives of the Trusts, the report added.

The RBI on April 29 expanded the definition of 'public funds' in its regulations for non-banking financial companies. The updated rules state that investment companies that have access to public funds indirectly through group entities or associates will not be exempted from the requirement to go public if they hold assets worth at least 1 trillion rupees ($10.5 billion).

The rules will come into effect on July 1.

(Editing by Una Galani; Production by Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

May 28 (Reuters) - India's Ashok Leyland ASOK.NS reported its highest ever quarterly profit on Thursday, helped by strong demand for commercial vehicles.

• The Hinduja Group flagship reported standalone profit of 14.05 billion rupees ($146.8 million) in the three months ended March 31, up 13% from 12.46 billion rupees a year ago.

• Revenue from operations jumped about 19% to a record 141.6 billion rupees in the fourth quarter

• Auto sector demand, including for commercial vehicles, continued stayed strong on momentum from last year's tax cuts

• Analysts, however, warned of margin pressures due to increased input costs amid the ongoing U.S.-Iran war.

• Ashok Leyland's input costs soared 29%, driving up expenses by 19%

• "Our CV and export volumes were at an all-time high... the company delivered significant growth in power solutions, aftermarket and electric mobility businesses," Chairman Dheeraj Hinduja said.

• Earlier this month, rival Tata Motors TATM.NS flagged near-term cost pressures due to the ongoing war even as it reported a near 70% jump in fourth-quarter profit.

($1 = 95.6863 Indian rupees)

(Reporting by Devika Nair in Bengaluru; Editing by Joyjeet Das)

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By Aditi Shah

May 26 (Reuters) - Greetings from New Delhi! For years, the global auto industry has tried to convince investors that the future will be defined by software, electric vehicles and self-driving technology.

This week, Stellantis STLAM.MI delivered a reality check.

The carmaker unveiled a €60 billion ($70 billion) strategy that leans heavily on partnerships and pragmatism over ideology. Meanwhile, Volkswagen VOWG.DE was forced to reassure workers that it was not handing over excess European factory capacity to Chinese rivals. And Japan found itself squeezed again by Beijing over rare earths - a reminder that the future of mobility still depends as much on geopolitics, supply chains and technology as it does on China.

In other news, the pressure from high fuel prices and shipping disruptions triggered by the Iran war is beginning to reshape markets from Pakistan to Japan and forcing India’s biggest carmaker Maruti Suzuki to adopt austerity measures.

Which brings us to today’s Auto File…

Stellantis’ new era of alliances under Antonio Filosa

Volkswagen tries to calm nerves over China

China tightens its grip on rare earths, again

Stellantis embraces partnerships in €60 billion reset

Stellantis laid out a sweeping €60 billion strategy this week that marks a clear shift under new CEO Antonio Filosa.

Unlike former CEO Carlos Tavares, whose strategy relied heavily on internal execution and aggressive cost cutting, Filosa is leaning into partnerships to reduce costs and accelerate product development timelines.

The group plans to launch 60 new models by 2030 spanning combustion engine, hybrid and electric vehicles, while also simplifying platforms and trying to monetize its chronic problem of excess factory capacity.

The list of partners says a lot about where the industry is heading.

On manufacturing, Stellantis is expanding ties with Chinese automakers Leapmotor and Dongfeng, while also working with Tata Motors and Jaguar Land Rover in the United States. On technology, it is relying on companies such as Qualcomm, Applied Intuition and British self-driving startup Wayve.

The message from Filosa is clear: legacy automakers can no longer afford to do everything themselves.

That may end up being the most important takeaway for others as well.

Recommended reading:

• Mercedes-Benz plans to launch its version of assisted driving in Germany by 2026-end as Europe’s autonomous driving race intensifies with Tesla in the lead

• Pakistan’s Lucky Motors has partnered with China’s GAC as it bets that war-triggered fuel shocks will accelerate EV adoption

• Geely will launch its first gasoline engine car in South Africa, with more to come, as it looks beyond EVs in a market where petrol still rules

• Ferrari’s long-awaited electric vehicle debut landed with a thud

Volkswagen walks a tightrope on China and overcapacity

Volkswagen CEO Oliver Blume used a workers’ assembly this week to publicly deny reports that the German automaker was in talks with Chinese manufacturers about using excess factory capacity in Europe. You can read more here.

The fact that he had to address the issue at all says a great deal about the anxiety inside Europe’s largest automaker. Volkswagen is grappling with a painful reality confronting much of Europe’s auto industry: too many factories, weak demand and rising Chinese competition.

Blume acknowledged that Volkswagen still has excess capacity in Europe and Germany and that the issue must be addressed to remain competitive. But he also tried to reassure workers that there were “currently no plans or discussions with Chinese manufacturers.”

But the economic pressure is only growing.

Stellantis has openly embraced partnerships with Chinese firms to help fill unused capacity. Volkswagen, for now, is trying to buy itself time.

China halts rare earth exports in tiff with Japan

China has halted exports of several heavy rare earth materials to Japan since January, according to Chinese customs data and industry sources, reviving memories of the geopolitical standoff between the two countries in 2010.

The timing is striking as it coincides with a broader deterioration in relations between Beijing and Tokyo over Taiwan and mirrors China’s restrictions with the United States during the recent trade tensions.

The move matters enormously for the auto industry. Japan remains the world’s largest producer of rare earth magnets outside China, but it is still heavily dependent on Chinese supply for key materials such as dysprosium and terbium used in electric motors, aerospace systems and advanced electronics.

For automakers already struggling with geopolitical fragmentation, tariff uncertainty and supply-chain shocks, rare earths are becoming another reminder that the transition to EVs is deeply tied to resource security, and China.

Fast laps

Japanese auto exports to the Middle East plunged more than 90% in April as the Iran conflict disrupted shipping routes through the Strait of Hormuz, highlighting how exposed global automakers remain to geopolitical shocks. This is a key region for the likes of Toyota and Nissan.

India’s Maruti Suzuki has introduced some austerity measures to curb the use of petrol as fuel prices remain elevated. Employees have been advised to work from home on some days, if possible, carpool to save fuel and cut down on non-essential air travel.

SpaceX unveiled plans for what could become the first trillion-dollar U.S. IPO, underscoring the growing financial and technological overlap between Elon Musk’s businesses, including Tesla.

(Editing by Emelia Sithole-Matarise)

Adds shares at close in paragraph 6, CEO comment on Chinese partnerships, paragraphs 11-12

By Nora Eckert, Giulio Piovaccari and Gilles Guillaume

AUBURN HILLS, Michigan, May 21 (Reuters) - Stellantis STLAM.MI on Thursday laid out a 60 billion euro ($70 billion) strategy that marks a shift under new CEO Antonio Filosa, combining a wave of new partnerships, a sharper focus on core brands and a push to better monetise excess factory capacity.

The five-year investment, which includes 60 new models by 2030 - among internal combustion engine, hybrid and fully electric - underscores a break from the approach of former CEO Carlos Tavares, with Filosa more open to external collaboration.

"The plan is grounded in reality... And it is designed to create a condition for profitable and sustainable growth," Filosa told investors at the group's capital markets day.

A string of announcements ahead of and during the event highlighted the new direction, with Stellantis expanding partnerships in both manufacturing and technology.

INVESTORS RESPOND CAUTIOUSLY

Investors reacted cautiously to the long-term nature of the targets and limited visibility on execution. After drops earlier in the day, New York-listed shares in the company closed roughly flat.

Fabio Caldato, a fund manager at Stellantis investor AcomeA, said investors were concerned about how quickly the group could deliver on its ambitions.

"Expectations were high, and the initial reaction primarily reflects execution risk and limited visibility regarding the implementation of the plan," he said, adding that there had been "no significant indication" on whether less strategic brands might be phased out.

GROWING RELIANCE ON PARTNERSHIPS

New partnerships include production tie-ups with Chinese groups Leapmotor 9863.HK and Dongfeng 600006.SS, as well as cooperation with Tata Motors TAMO.NS and its JLR unit in the U.S. In technology, Stellantis is working with firms such as Qualcomm QCOM.O, Applied Intuition and self-driving startup Wayve.

These Chinese partnerships have focused on Europe, and Filosa told reporters on Thursday that he does not expect their products to be available in the U.S. anytime soon.

The country has effectively barred these models with hefty tariffs and restrictions on certain foreign technologies. Still, he said there may be opportunities for the products to be sold in Mexico and Canada.

The strategy reflects a growing reliance on partners to share costs and accelerate development, particularly in expensive areas such as software and autonomous driving. Stellantis is also seeking to turn a long-standing weakness - excess manufacturing capacity - into a source of revenue by offering contract production to third parties, rather than bearing the cost of underused plants.

BRAND HIERARCHY AND AFFORDABLE OFFERINGS

Filosa set out a clearer hierarchy across Stellantis' 14-brand portfolio, the largest in the industry.

Around 70% of brand and product investment will be concentrated on Jeep, Ram, Peugeot and Fiat, along with its Pro One commercial vehicles division. Reuters first reported that the strategy would focus on these four brands.

Others, including Chrysler and Alfa Romeo, will be repositioned more regionally, with Lancia and DS shifting toward specialised roles under Fiat and Citroen.

The group's product push will centre on a broad range of more affordable models aimed at supporting volume growth, as well as profitability.

Brand leaders showcased several unreleased models in sessions with reporters, in an attempt to demonstrate how the company's new offerings will claw back market share from rivals.

In a crowded design dome with glittering starlights on the ceiling, executives showcased dozens of vehicles, some that were unveiled with booming music and puffs of smoke.

"This is more than a product strategy. It's a profit strategy," said Tim Kuniskis, head of North America brands.

Jim Walen, a Stellantis dealer in Seattle, on Thursday said he was in favor of plans for more affordable vehicles, especially a smaller pickup truck.

"I love it. It's spot on. It's exactly what the market needs," he said.

PLATFORM SHIFT

Stellantis said it would invest 24 billion euros in platforms, powertrains and technologies, while targeting 6 billion euros in annual cost cuts by 2028, compared with 2025.

It is targeting positive industrial free cash flow in 2027, increasing to 6 billion euros in 2030, and adjusted operating income margin of 7% by the end of the decade.

Stellantis on Thursday forecast 25% revenue growth in North America by 2030, with adjusted operating income margins of 8% to 10%, while Europe revenue is seen rising 15% with margins of 3% to 5%.

($1 = 0.8615 euros)

(Reporting by Nora Eckert in Auburn Hills, Giulio Piovaccari in Milan and Gilles Guillaume in Paris; additional reporting by Kalea Hall in Detroit; writing by Giulio Piovaccari; Editing by Susan Fenton, Louise Heavens, Nick Zieminski and Bill Berkrot)

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May 20 (Reuters) - Stellantis NV STLAM.MI:

• SIGNS MOU WITH JAGUAR LAND ROVER TO EVALUATE PRODUCT DEVELOPMENT COLLABORATION IN U.S.

• AIM OF MOU TO EXPLORE SYNERGIES IN PRODUCT AND TECHNOLOGY DEVELOPMENT

• EVENTUAL COMPLETION OF ANY DEALS COMING FROM DISCUSSION IS SUBJECT TO CUSTOMARY CLOSING CONDITIONS

Further company coverage: STLAM.MI

(Gdansk Newsroom)

(([email protected]; +48 58 769 66 00;))

May 18 (Reuters) - The following are the top stories on the business pages of British newspapers. Reuters has not verified these stories and does not vouch for their accuracy.

The Times

- British finance minister Rachel Reeves plans to announce next week that she will scrap a planned rise in tax on motor fuel that is due to take place in September.

- EY UK has paid more than 100 million pounds ($133.16 million) to the administrators of NMC Health Plc NMMCF.PK to settle claims it was negligent in its audits of the failed firm.

The Guardian

- Jaguar Land Rover and General Motors GM.N are considering an expansion into UK defence via a 900 million pound military contract, as the automobile companies are among a group of firms vying to make thousands of trucks for the armed forces to replace an ageing fleet of Land Rovers that have been out of production since 2016.

- An Ebola outbreak in the Democratic Republic of Congo and Uganda has been declared a public health emergency of international concern by the World Health Organisation, after 80 suspected deaths.

The Telegraph

- Investors in Britain's largest water supplier, Thames Water have told the government that a temporary nationalisation of the embattled company would slow its turnaround.

Sky News

- Britain's government will set out more detailed proposals next week to relax bank regulations that had been designed to stop a repeat of the 2008 financial crisis.

- Blastr, the preferred bidder for Liberty Steel, met the Official Receiver late last week to discuss the possibility of taxpayers underwriting risks associated with the purchase of Speciality Steel UK.

The Independent

- Greater Manchester Mayor Andy Burnham is expected to tone down his call to reverse Brexit as he faces a crunch by-election that could see him return to parliament.

($1 = 0.7510 pounds)

(Compiled by Bengaluru newsroom)

(([email protected]))

Updates to add state charity commissioner's order

By Jayshree P Upadhyay and Gopika Gopakumar

MUMBAI, May 16 (Reuters) - India's Tata Sons, the umbrella organisation for 31 companies including TCS TCS.NS, Tata Motors TAMO.NS and Tata Steel TISC.NS, is facing pressure to go public, even as the charitable trusts controlling two-thirds of the conglomerate grapple with internal differences.

Until now, Tata Sons has remained unlisted. But pressure to list is mounting from internal stakeholders, including its second largest shareholder, the Shapoorji Pallonji (SP) Group. Rules from the Reserve Bank of India may also require it to list unless an exemption is secured.

WHAT IS THE STRUCTURE OF THE TATA GROUP?

The 108-year-old salt-to-steel conglomerate is uniquely structured, where a combine of philanthropic organisations broadly known as the Tata Trusts holds 66% in Tata Sons. Debt-ridden construction and infrastructure conglomerate SP Group holds 18.4% of the company.

The Tata Trusts comprise 13 entities, seven of which directly hold shares in Tata Sons. The board of Tata Trusts consists of six trustees drawn from these entities.

Noel Tata, scion of the founding family, is the current chairman of Tata Trusts and is a director on the Tata Sons board.

WHO WANTS TATA SONS TO LIST?

Pressure for listing is coming from multiple quarters.

At least two of the six Tata trustees - Venu Srinivasan and Vijay Singh - have supported the listing of Tata Sons in media interviews, saying expansion, especially into new areas like semiconductors, will require large capital that cannot be generated internally.

The SP Group wants a listing so it can monetise or exit its holding, which is not freely transferable in the current structure. But the SP group is not represented among the trustees.

The key pressure is regulatory, stemming from RBI rules requiring large non-bank lenders above certain asset thresholds or with public funds to list.

WHAT ARE THE RBI RULES AND WHY DO THEY APPLY TO TATA SONS?

As the holding company of a number of businesses, Tata Sons is classified as a core investment company, which falls under the RBI's regulations.

Revised rules issued last month state that companies with assets exceeding 1 trillion rupees ($10.45 billion), or those with direct or indirect access to public funds, must list.

As of March 2025, Tata Sons' standalone assets stood at 1.75 trillion rupees.

The RBI retains discretion to determine which firms can be exempt from listing.

HAS RBI CLARIFIED ITS STANCE?

While analysts and legal experts say the revised rules make it harder for Tata Sons to remain private, the RBI has not publicly stated its position.

A request by Tata Sons for exemption is still under review. The company has reduced borrowings in an effort to avoid listing, but it remains unclear if that will suffice.

WHO IS OPPOSING THE LISTING?

Noel Tata has not made public comments, but has privately opposed converting Tata Sons into a listed entity. Media reports say he and other trustees unanimously opposed listing last year and asked the Tata Sons' chairman to engage with the RBI.

THE ISSUES AT TATA TRUSTS

India's Maharashtra state charity commissioner has ordered Tata Trusts to defer its board meeting after complaints triggered an inquiry into the trusts' governance. One of the complainants was Venu Srinivasan, a senior trustee at Tata Trusts.

On May 16, the boards of two key trusts — Sir Dorabji Tata Trust and Sir Ratan Tata Trust — which together hold over 50% of Tata Sons, were due to meet.

A central agenda item was to be the discussion of the RBI rules and their implications for a potential listing.

Additional items included increasing the Tata Trusts’ representation on the Tata Sons board, the reappointment of its chairman, and a review of Tata Sons’ performance.

The board meeting, the first since the RBI's rules were revised, was being keenly watched by the street for differences within the trustees on the listing of Tata Sons and how it may play out.

Under the Trusts' governance norms, resolutions are passed if a majority of trustees vote in favour. Therefore, if a majority of trustees support the proposal to list Tata Sons, the company would have to initiate the listing process.

(Reporting by Jayshree P Upadhyay and Gopika Gopakumar in Mumbai; Editing by Ira Dugal, Raju Gopalakrishnan and Muralikumar Anantharaman)

(([email protected]; 9920092491; Reuters Messaging: Twitter: @jaysh88))

Adds details from analysts notes

May 15 (Reuters) - Shares of India's Tata Motors Passenger Vehicles TAMO.NS jumped up to 8.3% on Friday, as investors looked past margin pressures stemming from the Middle East conflict, with Jaguar Land Rover (JLR) focusing on cost cuts and premium launches to protect margins.

The rally reflects investor confidence that Tata Motors can offset Middle East-driven cost pressures through the pricing power of JLR, its largest revenue generator, strong Western demand, and a $2.3 billion efficiency drive.

Shares were up 5.6% at 357.70 rupees as of 10:43 a.m. IST and were the top gainer on the benchmark Nifty 50 Index .NSEI and Nifty Auto Index .NIFTYAUTO, which were up 0.6% and 0.7%, respectively.

Brokerages also attributed the rally to optimism around a richer product mix and a resilient India business.

Jefferies said western demand is holding up, while the cost-cut plan is expected to lower break-even volumes to 300,000 units and earnings before interest, taxes, depreciation, and amortization (EBITDA) margins of 10%-10.5% for fiscal 2027-28. Its fiscal 2026 margin narrowed to 9.2%.

The launch of the Range Rover electric vehicle and Free-Lander in China could initially boost profitability in the near term, Ambit Capital said in a note, adding that success with these models is key to the much-awaited transition of the brand into a luxury brand.

Macquarie also said that better-than-expected margins in both the India passenger vehicle and JLR businesses could support near-term stock performance.

The automaker has already raised prices effective April 1 and may hike them again if cost pressures persist, Managing Director and CEO Shailesh Chandra said on Thursday in a post-earnings call, adding that commodity prices have risen about 5% over the past 9–12 months and remain volatile.

(Reporting by Urvi Dugar in Bengaluru; Editing by Rashmi Aich)

(([email protected]; +91 9558725583;))

May 14 (Reuters) - Indian carmaker Tata Motors Passenger Vehicles TAMO.NS posted a lower fourth-quarter profit on Thursday, as soaring raw material costs offset higher sales at its luxury JLR unit.

The Range Rover SUV manufacturer posted a profit of 57.83 billion rupees ($603.89 million) for the quarter ended March 31, against 84.7 billion rupees a year earlier.

($1 = 95.7625 Indian rupees)

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

(([email protected]; Mobile: +91 8800437922))

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

By Shritama Bose

MUMBAI, May 8 (Reuters Breakingviews) - India Inc's global M&A push is coming at an inopportune time for its government. Sun Pharmaceutical Industries SUN.NS last week agreed to buy U.S.-based Organon OGN.N for $11.8 billion, months after Tata Motors' TATM.NS $4.4 billion deal to acquire Iveco's IVG.MI trucks unit. A quest for new markets and technology promises more outbound approaches. That may eventually hand New Delhi reasons to feel displeased.

Cross-border acquisitions by Indian groups are on the rise. In 2025, large-ticket transactions like Tata Motors' Iveco purchase and IT firm Coforge's COFO.NS $2.4 billion acquisition of U.S.-based Encora contributed to a $26 billion splurge on overseas assets, the most active year by volume since 2010, per Dialogic.

It's sensible for Indian companies sitting on a large cash balance to deploy it in markets where valuation multiples are lower, rather than to acquire richly valued local peers. Sun Pharma trades at 33 times forward earnings and is paying just 4 times that metric for similarly sized Organon; smaller Indian rivals like Torrent Pharma TORP.NS and Divi's Laboratories DIVI.NS trade at much higher multiples.

Access to richer markets in Asia, Europe and the U.S. is also a big draw, as is technological know-how. Tata Motors' TAMO.NS 2008 buyout of Jaguar Land Rover helped build its local range of electric cars. The incentive to buy tech firms is especially high as India's own investment in R&D, at 0.7% of GDP, lags the global average of 2%.

Interest in external assets will intensify as advances in artificial intelligence force groups from outsourcers to drugmakers to level up. Manufacturers investing in areas like defence, vehicle components and consumer electronics will look to bridge India's capability gap with the rest of the world.

New Delhi has so far been sanguine about the trend, seeing it as a sign of India Inc's growing clout on the global stage. That could change as outbound fund flows add to rising pressures on external balances. With a surging energy import bill and fund outflows, India could be staring at a third straight financial year of a negative balance of payments in the 12 months to the end of March 2027.

Part of the cash being splurged overseas stems from a 2019 decision to sharply cut the corporate tax rate; officials hoped that would encourage firms to invest more locally to stimulate growth and employment. While private spending is showing signs of life, its contribution to GDP is below historical levels.

In time, New Delhi may find those dimensions of India Inc's overseas shopping spree unpalatable and act against them. Until then, there's little reason for companies to stop gazing outwards.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Sun Pharmaceutical Industries on April 27 said it will buy ​U.S. drugmaker Organon in an all-cash deal valuing the target at about $11.75 billion including debt, making it ‌the largest overseas acquisition by an Indian pharmaceutical company.

Indian IT services provider Coforge said on December 26 it would acquire artificial intelligence firm Encora at an enterprise value of $2.35 billion to boost its in-house artificial intelligence capabilities and expand its presence in the U.S. and Latin America.

(Editing by Antony Currie; Production by Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

May 7 (Reuters) - Italian truckmaker Iveco IVG.MI, set to be acquired by India's Tata Motors TATM.NS, said on Thursday its adjusted net result swung to a loss of 74 million euros ($87 million) in the first quarter, from a profit of 60 million euros a year ago.

Iveco also said that Tata Motors' tender offer was expected to close by the third quarter of 2026, and not in the second quarter as previously estimated.

• The negative results follow the sale of Iveco's defence unit to Italy's Leonardo DRS.O, which was finalised in March

• Q1 adjusted operating loss from industrial activities was 90 million euros, compared to a profit of 82 million euros in 2025

• Net revenue from industrial activities amounted to 2.8 billion euros in the quarter

($1 = 0.8510 euros)

(Reporting by Anna Uras in Gdansk, editing by Milla Nissi-Prussak)

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