TMPV

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)

May 21 (Reuters) - Stellantis says in slides STLAM.MI during the group's capital markets day:

• PARTNERING WITH TATA MOTORS TO LOOK FOR SYNERGIES ACROSS SUPPLY CHAINS, PRODUCTS AND MANUFACTURING IN EMERGING MARKETS

• TARGETS 10% REVENUE GROWTH IN SOUTH AMERICA, 40% IN MIDDLE EAST AND AFRICA, 100% GROWTH IN ASIA PACIFIC BY 2030

• TARGETS REDUCING PRODUCT DEVELOPMENT TIME TO 24 MONTHS FROM 40 MONTHS BY 2030

Further company coverage: STLAM.MI

(Reporting by Milan newsroom)

May 20 (Reuters) - Stellantis STLAM.MI and Britain's Jaguar Land Rover will consider jointly developing vehicles in the U.S., the French-Italian automaker said on Wednesday.

The two companies signed a preliminary agreement to explore collaboration opportunities in product and technology development.

They did not disclose any further details.

The potential collaboration would be the latest in a string of partnerships between global automakers as they look to cut production and R&D expenses and fill underutilized capacity.

Earlier in the day, Stellantis said it was planning a joint venture in Europe with China's Dongfeng 600006.SS that would explore production of electric vehicles.

For JLR, owned by India's Tata Motors Passenger Vehicles TAMO.NS, the U.S. collaboration with Stellantis as its financials have taken a large hit from U.S. President Donald Trump's tariffs.

The U.S. is a key growth market for JLR, where its Defender and Range Rover luxury SUVs are popular. However, it has no manufacturing presence in the country.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Sahal Muhammed)

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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)

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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))

By Jayshree P Upadhyay and Gopika Gopakumar

MUMBAI, May 15 (Reuters) - Tata Sons, the holding company of 31 group companies including TCS TCS.NS, Tata Motors TAMO.NS and Tata Steel TISC.NS, is facing pressure to go public - a discussion likely to come up at a board meeting on Saturday of two trusts that are major shareholders.

Until now, Tata Sons has remained unlisted. But there is now pressure to list from internal stakeholders, including its second largest shareholder, the Shapoorji Paloonji (SP) Group. Rules from the Reserve Bank of India may also require them to list unless they can secure an exemption.

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 hold 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.

WHAT WILL HAPPEN AT THE SATURDAY BOARD MEET?

On Saturday, the boards of two key trusts — Sir Dorabji Tata Trust and Sir Ratan Tata Trust — which together hold over 50% of Tata Sons, will meet.

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

Additional items include 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, first since the RBI's rules were revised, is 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.

($1 = 95.7150 Indian rupees)

(Reporting by Jayshree P Upadhyay and Gopika Gopakumar in Mumbai, editing by Ira Dugal and Raju Gopalakrishnan)

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

May 14 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:

• Q4 CONSOL NET PROFIT 57.83 BILLION RUPEES

• Q4 CONSOL TOTAL REV FROM OPS 1.05 TRLN RUPEES

• DIVIDEND 3 RUPEES PER SHARE

• SEES JLR INVESTMENT SPEND IS PLANNED TO REMAIN AT £18 BN OVER THE FIVE-YEAR PERIOD FROM FY24

• CONTINUE TO DELIVER PROFITABLE, INDUSTRY-BEATING GROWTH IN DOMESTIC BUSINESS

• WILL CONTINUE TO STEP-UP GROWTH AT JLR WITH DELIVERY OF LAUNCHES OVER NEXT 18 MONTHS

• TATA MOTORS PASSENGER VEHICLES ON JLR - WILL REDUCE BREAKEVEN VOLUMES TOWARDS 300K IN TWO YEARS BY FOCUSING ON £1.7BN OF SAVINGS

• TATA MOTORS PASSENGER VEHICLES ON JLR - PROFITABILITY IMPACTED BY ONGOING INCREMENTAL US TARIFFS AND INCREASED VME IN QTR

Further company coverage: TAMO.NS

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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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Rewrites throughout with industry executive's comments, background

By Kashish Tandon

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

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

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

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

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

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

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

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

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

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

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

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

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BENGALURU, May 4 (Reuters) - Indian engineering research and development (ER&D) firm Tata Technologies TATE.NS posted an 8.1% rise in fourth-quarter profit on Monday on broad-based growth across segments.

• Profit rose to 2.04 billion Indian ​rupees ($21.45 million) for the quarter ⁠ended March 31, from 1.89 billion Indian ​rupees a year ago.

• Tata Tech's profit was also helped by a one-time gain of 561.3 million rupees from partial reversal of charges related to India's labour codes

• The company expects double-digit organic growth in fiscal year 2027, chief executive officer Warren Harris said

• The firm provides engineering, product design and manufacturing digitalisation services to automotive, aerospace and industrial machinery clients

• Tata Technologies counts JLR and Tata Motors TATM.NS among its largest clients.

• The Tata group company's revenue rose 22.29% to 15.72 billion rupees, up from 12.86 billion rupees last year.

• Engineering research and development firms, which largely depend on orders from the U.S. and Europe, have been under pressure as global automotive clients cut back investments and R&D spending

• "This marks a clear inflection for the business, with growth broad-based rather than concentrated in any single customer or program," Harris said.

($1 = 95.09 Indian rupees)

(Reporting by Haripriya Suresh in Bengaluru; Editing by Ronojoy Mazumdar)

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Corrects paragraph 3 to show the company was established to 1997 (not founded in 1996

WUHU, China, April 28 (Reuters) - Chery, China's largest car exporter, is taking inspiration from two very different automakers - Toyota and Tesla - as it pursues expansion in Europe and beyond, its top executive told Reuters.

Chery 9973.HK is considering adding production capacity in Barcelona, Spain, where it has a joint venture. It is also looking for more opportunities to share production facilities with European car companies, Chairman Yin Tongyue said in an interview on Monday.

Established in 1997 on the banks of the Yangtze River, Chery's first car rolled off the assembly line in 1999. It was originally known as Cheery and billed itself as a cheerful, low-cost brand. Now it sees itself in the mold of Toyota 7203.T, synonymous with quality, and Tesla TSLA.O, which is known for its innovation.

"Our strategy, we call it 'double T,'" Yin said at Chery's global headquarters in the eastern city of Wuhu. "Toyota plus Tesla."

That means producing cars with both the quality to win over customers for the long term and the advanced technology to attract younger buyers, he said.

Chery and competitors BYD 1211.HK and Geely 0175.HK are among the Chinese automakers upending the global industry with cutting-edge electric vehicles at prices traditional automakers cannot match. China's annual auto show, held this year in Beijing and open to the public starting this week, is now the largest such event in the world.

Chery sold 2.8 million cars last year, up nearly 8% from a year earlier, according to industry data. It is building its Ebro brand of cars in Spain with a local JV at a former Nissan 7201.TO plant in Barcelona.

"Right now it's very good," Yin said of the Spanish operation, adding that Chery wanted to "enlarge this capacity in Barcelona" and potentially export cars to other markets.

However, it wasn't sustainable to ship cars from one country to others in large volumes, he said. Instead, Chery wanted to manufacture more in local markets and was actively looking to partner with other automakers in Europe to share production facilities, Yin said, without providing details on which countries it was considering.

"We can share profits, we can share models," he said of potential tie-ups.

GLOBAL SURGE

Chery's global sales have surged in recent years, almost quadrupling from 2020 to 2025. Still, the automaker remains well behind domestic rival BYD, which sold 4.6 million cars in 2025, becoming the world's No. 5 automaker by volume.

Chery launched two new international brands - Omoda and Jaecoo - in 2023. It sold 380,000 of the two brands combined last year and the company told dealers and staff over the weekend in Wuhu that it is targeting combined sales of 1 million vehicles in 2027.

The automaker hosted an "international business summit" in Wuhu over the past few days. Company representatives said some 4,000 people, including international dealers and suppliers, attended.

The Jaecoo 7 SUV has done particularly well in some markets and was Britain's top-selling car in March.

Chery's brands are heavily reliant on sport utility vehicles - 2.3 million out of the 2.8 million vehicles it sold last year worldwide were SUVs - and the company is now working on smaller models to broaden its lineup.

The push to build smaller is also a sign of Chery's global ambitions. Chinese consumers traditionally prefer large cars, unlike Europeans, Yin said.

Like the rest of its domestic rivals, Chery has to contend with a brutal price war at home, where there are more than 100 auto brands. But Yin said he believed a long-overdue shakeout in the industry was imminent.

"In a couple of years, maybe a very few can survive and be healthy," he said. "Right now, it's coming."

(Reporting By Nick Carey, David Dolan and Zhang Yan; Editing by Thomas Derpinghaus)

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April 28 (Reuters) - The U.S. National Highway Traffic Safety Administration (NHTSA) said on Tuesday it has upgraded its probe into Jaguar Land Rover vehicles to an engineering analysis, following reports that front aluminum steering knuckles could fracture.

The auto safety regulator said the investigation covers 331,559 vehicles, including Range Rover and Range Rover Sport models from the 2014 to 2022 model years.

(Reporting by Akanksha Khushi in Bengaluru; Editing by Sherry Jacob-Phillips)

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April 27 (Reuters) - Automakers in the world's third-largest car market are set to report robust quarterly earnings, while bracing for the fallout from the Iran war, which threatens to upend supply chains and spike raw material and fuel prices, analysts said.

Top Indian carmakers are expected to post revenue growth of about 11% to 26% in the fourth quarter, according to LSEG-compiled data, with steep tax cuts helping boost total sales to a record high in the fiscal year.

Industry leader Maruti Suzuki MRTI.NS will kickstart sectoral earnings on April 28.

IN THE FAST LANE

Maruti, which makes the popular compact SUV, Brezza, is expected to deliver one of its strongest quarters, supported by a richer export mix, analysts at Morgan Stanley said.

The carmaker is expected to post 25.5% revenue growth, per LSEG-compiled data.

For Thar-maker Mahindra & Mahindra MAHM.NS, a higher mix of electric SUVs and the price hikes taken in January are expected to support margins on a sequential basis, HDFC Securities said.

However, brokerages, including HDFC Securities, expect electric-vehicle-related spending and new model launch expenses to offset recent price increases.

Margins at Tata Motors Passenger Vehicles' TAMO.NS luxury unit Jaguar Land Rover are expected to recover sequentially as production restarted after the cyberattack at its UK plant last year.

The third-biggest carmaker was not included in the LSEG-compiled estimates after its October demerger from its commercial vehicles unit.

The overall industry's wholesale volumes grew 13.2% during the quarter, faster than the 2.4% growth recorded in the same period last year.

Hyundai Motor India HYUN.NS could be the outlier with profitability constrained by an adverse product mix, higher marketing spends and elevated input costs, analysts said.

The company is estimated to post revenue growth of around 11%, according to LSEG-compiled data.

RISK TO MARGINS

The months since India's tax cuts in September saw a revival in showroom footfalls and a volume-led recovery across price-sensitive small cars and sport utility vehicles, while lower discounts helped lift margins.

That cushion could be thinning.

Rising prices of steel and aluminium, as well as freight costs, are beginning to weigh on profitability, analysts said, as automakers remain wary of steep price hikes given competition and regulatory constraints.

Maruti had said it will likely raise prices, following in the footsteps of its global peers Mercedes-Benz MBGn.DE and BMW BMWG.DE.

HDFC Securities expects margins to soften sequentially across the sector.

Analysts at CLSA estimate that carmakers would have to increase prices by about 6% to soften the impact of soaring input costs.

"For upcoming quarters, the key risk is not demand collapse, but whether rising costs begin to outpace the industry's ability to protect margins," analysts at Motilal Oswal said in an earnings preview note.

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

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Adds dateline; no changes to text

April 23 (Reuters) - Jaguar Land Rover is recalling 170,169 vehicles in the U.S. due to loss of drive power, the U.S. National Highway Traffic Safety Administration said on Thursday.

The recall affects multiple models including Range Rover, Discovery, Range Rover Sport, Defender, etc., NHTSA said.

A failure of the DC-DC converter will stop the vehicle's 12-Volt system from charging and can lead to complete loss of drive power and exterior lighting, the auto regulator said.

The remedy for this recall is currently under development, NHTSA added.

(Reporting by Disha Mishra in Bengaluru; Editing by Nivedita Bhattacharjee)

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Adds Tesla executive comments and details throughout

By Dhwani Pandya

MUMBAI, April 22 (Reuters) - U.S. electric vehicle maker Tesla TSLA.O has launched a six-seater version of its best-selling Model Y in India as it tries to attract buyers in the world's third-largest car market where it has struggled to grow sales.

Tesla has sold just 350 Model Ys in India since starting deliveries in September, government data showed, with rivals including BYD 002594.SZ, Mercedes-Benz MBGn.DE and BMW BMWG.DE far outselling the U.S. company over the same period.

Its imported Model Y attracts a steep 100% import tariff, a level that chief Elon Musk has often criticised, meaning Tesla's cars are priced much higher in India than in other markets.

With the Model Y L, Tesla aims to tap a wider customer base as Indian buyers, especially families, increasingly turn to larger, premium vehicles equipped with touchscreen displays and sunroofs. This shift has helped propel demand for three-row SUVs in India, a segment currently dominated by Toyota Motor 7203.T and Suzuki Motor 7269.T.

The Model Y L, which has a longer driving range of 681 kilometers (423 miles), will be priced at about 6.2 million rupees, equivalent to $66,000. That is only slightly above the $64,000 price tag on the Model Y, but still far above a market where most cars are priced below $22,000.

Tesla introduced the Model Y L in China last year at a starting price of 339,000 yuan ($49,700).

Isabel Fan, a senior director at Tesla, told reporters at the vehicle's launch event in Mumbai on Wednesday that the company has mass-market models and it wants to increase accessibility.

"We continue to work on affordability," she said.

Tesla is developing a smaller, cheaper SUV after scrapping a highly anticipated low-cost EV project in 2024 to focus on robotaxis and humanoid robots, Reuters reported this month.

While the carmaker is aiming for full self-driving autonomy for all its models, there is a realisation that ⁠many global markets, including India, won't see meaningful adoption – nor regulatory acceptance – of driverless vehicles for years.

Electric vehicles made up less than 5% of total car sales in India last year, with local players including Tata Motors TAMO.NS and Mahindra MAHM.NS dominating the sector.

Musk has lobbied India's federal government for years to lower import tax on electric cars but Prime Minister Narendra Modi's administration rejected the proposals, instead pushing Tesla to manufacture locally. However, Tesla dropped plans to build cars in India, instead importing Chinese-made models.

Deliveries of the six-seater Model Y L will begin in the current quarter, Tesla's India General Manager Sharad Agarwal said at the event.

(Reporting by Dhwani Pandya in Mumbai and Mrinmay Dey in Mexico City, additional reporting by Aditi Shah in New Delhi; Editing by Sherry Jacob-Phillips, Kirsten Donovan)

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April 14 (Reuters) - India's auto industry body on Tuesday flagged concerns on the possible adverse impact of the Middle East war on automotive production, input and fuel prices, and freight rates.

Here are some key details:

• The West Asia conflict is expected to pose short-term challenges for the auto industry, Shailesh Chandra, president of Society of Indian Automobile Manufacturers (SIAM), said.

• Uncertainties arising from the West Asia conflict, particularly prices of crude oil and commodities, higher exchange rates and disruptions in shipping routes, remain a concern for the auto sector, the industry body said.

• In the near term, the conflict may weigh on export volumes, and the evolving situation reinforces the need for calibrated supply chains and diversification of energy inputs, analysts at Antique Stock Broking said.

• In the entry-level segment in April so far, buyer enquiries are strong, but converting them to sales is taking longer, the SIAM president said.

• Car sales by manufacturers to dealers in the world's third-largest car market rose 7.9% to 4.6 million units in the financial year 2026, industry data showed, compared to the previous fiscal year's 2%, as consumer sentiment improved due to tax cuts.

• 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.

• Total domestic two-wheeler sales in the financial year 2026 rose 10.7% on-year compared to 9.1% growth last year, the industry data showed.

(Reporting by Aditi Shah and Anuran Sadhu; Editing by Harikrishnan Nair)

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

By Shritama Bose

MUMBAI, April 8 (Reuters Breakingviews) - It's a tough time to be in the Tata group's cockpit. The $260 billion conglomerate was already buffeted by its own leadership turbulence. Now the CEO of its beleaguered carrier Air India has quit, the carrier confirmed on Tuesday. That complicates Chair N Chandrasekaran's bid to stay in the pilot's seat of the unlisted holding company, Tata Sons.

Campbell Wilson had more than a year left on his five-year contract at the de facto national airline. But financial losses and operational issues, including a deadly crash, have been piling up since the Tatas bought it from the Indian government in 2022. Chandrasekaran, or Chandra as he's widely known, oversaw Air India's purchase, but the acquisition was driven by the emotional attachment to the asset by Ratan Tata, Tata Sons' late chair emeritus, whose family founded the airline prior to its nationalisation.

Wilson's departure also looks badly handled. He had, the airline said on Tuesday, told Chandra in 2024 that he intended to step down this year. That was ample time to find a successor. The board held discussions with prospective candidates, yet he's leaving with no one to take the helm. By contrast, rival Interglobe Aviation INGL.NS, or IndiGo, quickly found a replacement last month for outgoing CEO Pieter Elbers in British Airways veteran Willie Walsh.

It's reminiscent of the inability to resolve lingering leadership issues at the airline's parent. Tata Sons holds stakes in 25 public companies and private units, including the carrier and a semiconductor-making venture. A board meeting in June will decide if Chandra will get a third five-year term at the powerful Indian business. His current stint is due to end in 2027.

A year ago a renewal was all but guaranteed for the 62-year-old executive, who led the group's cash cow outsourcer Tata Consultancy Services TCS.NS for eight years and oversaw a turnaround of group companies, including Tata Motors Passenger Vehicles TAMO.NS. But problems at a number of subsidiaries have brought pushback from Noel Tata, the new head of the charitable trusts that control the holding firm.

To win over opponents, Chandra may have to lay out a fresh plan for turning around underwater businesses like Air India and the struggling e-commerce unit Tata Digital, Moneycontrol reported on Monday, citing sources. He will also be under pressure to chart ways for TCS to regain its edge as artificial intelligence tools disrupt the business model of India's largest outsourcer.

That makes Wilson's departure even more inopportune, lengthening Chandra's emergency to-do list. It looks increasingly like the Tata group is fighting to break out of a succession doom loop.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Air India confirmed on April 7 that CEO Campbell Wilson has resigned. It came hours after Reuters reported the news, citing an unnamed source with direct knowledge of the matter.

Air India said Wilson made known in 2024 his intention to quit this year.

Tata Sons chair N. Chandrasekaran is expected to spell out a clearer path to profitability for businesses such as Air India, Tata Digital and the group’s electronics manufacturing ventures, Indian news website Moneycontrol reported on April 6, citing unnamed officials from the Tata group.

(Editing by Antony Currie and Una Galani; Production by Ujjaini Dutta)

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

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)

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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

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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

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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)

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Repeats to additional subscribers, with no change to text

By Aditi Shah

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

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

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

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

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

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

The ministry wants the sector to do more.

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

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

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

(Reporting by Aditi Shah, Editing by William Maclean)

(([email protected]; +91-11-4954 8023, +91-11-3015 8023; Reuters Messaging: twitter: @aditishahsays))

By Aditi Shah

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

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

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

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

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

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

The ministry wants the sector to do more.

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

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

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

(Reporting by Aditi Shah, Editing by William Maclean)

(([email protected]; +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

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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)

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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)

(([email protected];))

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)

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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

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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)

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