South Africa is considering imposing tariffs on auto imports in response to  US President Donald Trump’s tariff threats. The move aims to protect local manufacturers and counter potential trade pressure.

South Africa To Levy Duties on Foreign Cars; Indian, Chinese Automakers Face Tariff Threat

As US President <a href="https://www.wionews.com/donald-trump" rel="dofollow noopener" target="_blank">Donald Trump's</a> tariffs bite into exports, Chinese car manufacturers are turning to Russia and the Middle East to cushion the impact, with fresh numbers revealing just how dominant China&rsquo;s auto industry has become on the world stage.
Despite rising trade barriers from the United States, Europe, and others, China remains a powerful force in car production, with domestic sales thriving and exports continuing to expand.
Watch: <a href="https://www.wionews.com/videos/china-made-toys-75-of-us-imports-face-cost-hikes-8988682" rel="dofollow noopener" target="_blank">China-made toys, 75% of US imports, face cost hikes</a>
<h2>China's car exports race ahead</h2>
New research from global consultancy AlixPartners shows that China&rsquo;s vehicle exports jumped by 23% in 2024, reaching 6.4 million passenger vehicles. That puts China more than 50% ahead of Japan, now the world&rsquo;s second-largest car exporter.
For the first time, exports to Russia and the Middle East made up 35% of China's overseas car sales, surpassing total shipments to Europe and North America combined.
Also read: <a href="https://www.wionews.com/business-economy/is-chinas-economy-exposed-to-tariff-hit-8987969" rel="dofollow noopener" target="_blank">Is China's economy exposed to tariff hit?</a>
&ldquo;China's car sales to Russia and Belarus have more than doubled over the past five years, insulating it in part from the volatility of tariffs,&rdquo; said Andrew Bergbaum, global leader of AlixPartners&rsquo; Automotive and Industrial Practice.
<h2>Tariffs take a toll, but only slightly</h2>
The ongoing trade war has still made an impact. According to AlixPartners, new tariffs imposed by the US and other countries are expected to raise the cost of Chinese vehicles and car parts by around 24%, or $46 billion, based on last year&rsquo;s export figures.
Also read: <a href="https://www.wionews.com/world/chinas-issues-big-warning-to-world-against-appeasing-trump-on-tariffs-threatens-payback-8984334" rel="dofollow noopener" target="_blank">&lsquo;Asking tiger for its skin&rsquo;: China issues BIG warning to world against &lsquo;appeasing&rsquo; Trump on tariffs, threatens payback</a>
Nearly $45 billion of that additional cost is linked to US tariffs. However, it's not yet clear whether carmakers, suppliers or consumers will end up bearing those costs.
That said, the report pointed out that the tariff-related losses represent only a small portion of China&rsquo;s total car production.
While tariffs are expected to cool China's export growth to 4% in 2025, the domestic market is forecast to stay strong. Sales in China are expected to rise by another 4% next year, reaching 26.8 million vehicles.
Also read: <a href="https://www.wionews.com/world/china-sends-55m-boeing-jet-back-to-us-calls-it-too-expensive-under-trump-tariffs-8984077" rel="dofollow noopener" target="_blank">5,000-mile return: China sends $55M Boeing jet back to US, calls it &lsquo;too expensive&rsquo; under Trump tariffs</a>

World: Despite rising trade barriers from the United States, Europe, and others, China remains a powerful force in car production, with domestic sales thriving and exports expanding.

As US President Donald Trump's tariffs bite into exports, Chinese car manufacturers are turning to Russia and the Middle East to cushion the impact, with fresh numbers revealing just how dominant China’s auto industry has become on the world stage. Despite rising trade barriers from the United States, Europe, and others, China remains a powerful force in car production, with domestic sales thriving and exports continuing to expand. Watch: China-made toys, 75% of US imports, face cost hikes China's car exports race ahead New research from global consultancy AlixPartners shows that China’s vehicle exports jumped by 23% in 2024, reaching 6.4 million passenger vehicles. That puts China more than 50% ahead of Japan, now the world’s second-largest car exporter. For the first time, exports to Russia and the Middle East made up 35% of China's overseas car sales, surpassing total shipments to Europe and North America combined. Also read: Is China's economy exposed to tariff hit? “China's car sales to Russia and Belarus have more than doubled over the past five years, insulating it in part from the volatility of tariffs,” said Andrew Bergbaum, global leader of AlixPartners’ Automotive and Industrial Practice. Tariffs take a toll, but only slightly The ongoing trade war has still made an impact. According to AlixPartners, new tariffs imposed by the US and other countries are expected to raise the cost of Chinese vehicles and car parts by around 24%, or $46 billion, based on last year’s export figures. Also read: ‘Asking tiger for its skin’: China issues BIG warning to world against ‘appeasing’ Trump on tariffs, threatens payback Nearly $45 billion of that additional cost is linked to US tariffs. However, it's not yet clear whether carmakers, suppliers or consumers will end up bearing those costs. That said, the report pointed out that the tariff-related losses represent only a small portion of China’s total car production. While tariffs are expected to cool China's export growth to 4% in 2025, the domestic market is forecast to stay strong. Sales in China are expected to rise by another 4% next year, reaching 26.8 million vehicles. Also read: 5,000-mile return: China sends $55M Boeing jet back to US, calls it ‘too expensive’ under Trump tariffs

Trump tried to hit China’s car industry hard, he barely left a scratch: Here’s how Russia helped Beijing shrug off the blow

Several car factories in Europe and North America face imminent closure or sale this year. This comes as automakers grapple with overcapacity and intense price competition. According to a Gartner report, automakers are expected to cut production capacity on both continents by 2025, driven by tightening emissions targets and tariff challenges. Watch in for more details!

Auto giants face factory shutdowns

In a significant move that marks a victory for Detroit automakers, the Biden administration has announced a relaxation of proposed rules that would have imposed strict requirements on manufacturers regarding the production of electric vehicles (EVs). <o:p></o:p>

The decision, unveiled by the Department of Energy, comes after intense negotiations with automakers, who raised concerns about meeting aggressive targets for EV transition.<o:p></o:p>

Initially proposed regulations aimed to push EV market share to 67 per cent of all new cars sold by 2032, a stark increase from the less than 8 per cent recorded last year. <o:p></o:p>

However, the revised rules offer automakers more flexibility by slowing down the phase-out of existing regulations, which provided additional fuel-economy credits for EV sales. <o:p></o:p>

This adjustment is expected to ease pressure on manufacturers, particularly the Detroit Three – General Motors, Ford, and Stellantis – known for their reliance on gas-guzzling trucks and SUVs. <o:p></o:p>

The Biden administration's retreat on the stringent EV push is perceived as a strategic move, considering the political landscape leading up to the 2024 presidential election. <o:p></o:p>

With Michigan serving as a crucial battleground state and the heart of the US auto industry, President Biden aims to address concerns raised by opponents, including former President Donald Trump, who criticised policies that could jeopardise auto jobs and potentially benefit China's EV industry.<o:p></o:p>

Under the original proposal, automakers faced substantial fines for not meeting fuel-economy requirements, with estimates suggesting potential fines totalling $10.5 billion through 2032. <o:p></o:p>

General Motors would have encountered fines of $6.5 billion, followed by Stellantis with $3 billion, and Ford with $1 billion over the same period. <o:p></o:p>

The announcement of revised rules has been met with relief by industry stakeholders, including the Alliance for Automotive Innovation, which expressed concerns that the earlier proposal could disincentivize EV production.<o:p></o:p>

While environmentalists have criticised the previous rules for assigning overly generous fuel-economy values to EVs, the latest adjustments aim to provide a more realistic assessment. <o:p></o:p>

For instance, the original proposal would have significantly reduced the "petroleum-equivalent fuel economy" ratings for EVs, which are crucial for offsetting the values of traditional gas-powered vehicles. <o:p></o:p>

The gradual reduction of equivalency ratings through 2030 offers automakers additional time to adapt to evolving regulations.<o:p></o:p>

The revised federal rules, which govern all automakers selling vehicles in the US, aim to strike a balance between promoting EV adoption and supporting the continued sale of combustion vehicles, including hybrids. <o:p></o:p>

Automakers such as Ford, Toyota, Stellantis, Honda, and Hyundai have reported increased sales of hybrid and plug-in hybrid vehicles in recent months, indicating a growing market for electrified vehicles. <o:p></o:p>

However, not all stakeholders are pleased with the softened regulations. <o:p></o:p>

Climate action groups and electric vehicle manufacturer Tesla have urged the administration to uphold stricter rules, emphasising the importance of accelerating the transition to cleaner transportation. <o:p></o:p>

While the revised rules may provide temporary relief to automakers, advocates argue that stringent measures are necessary to drive meaningful improvements in overall fleet efficiency and reduce emissions.<o:p></o:p>

In response to the Energy Department's decision, Reuters cited Pete Huffman, a senior attorney at the National Resources Defense Council (NRDC), who acknowledged the importance of eventually ending higher EV ratings. <o:p></o:p>

Huffman stated that the changes will curtail automakers' reliance on "phantom credits" and incentivise the production of more fuel-efficient vehicles, thereby contributing to environmental goals.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In a significant move that marks a victory for Detroit automakers, the Biden administration has announced a relaxation of proposed rules that would have imposed strict requirements on manufacturers regarding the production of electric vehicles (EVs).

In a significant move that marks a victory for Detroit automakers, the Biden administration has announced a relaxation of proposed rules that would have imposed strict requirements on manufacturers regarding the production of electric vehicles (EVs). The decision, unveiled by the Department of Energy, comes after intense negotiations with automakers, who raised concerns about meeting aggressive targets for EV transition. Initially proposed regulations aimed to push EV market share to 67 per cent of all new cars sold by 2032, a stark increase from the less than 8 per cent recorded last year. However, the revised rules offer automakers more flexibility by slowing down the phase-out of existing regulations, which provided additional fuel-economy credits for EV sales. This adjustment is expected to ease pressure on manufacturers, particularly the Detroit Three – General Motors, Ford, and Stellantis – known for their reliance on gas-guzzling trucks and SUVs. The Biden administration's retreat on the stringent EV push is perceived as a strategic move, considering the political landscape leading up to the 2024 presidential election. With Michigan serving as a crucial battleground state and the heart of the US auto industry, President Biden aims to address concerns raised by opponents, including former President Donald Trump, who criticised policies that could jeopardise auto jobs and potentially benefit China's EV industry. Under the original proposal, automakers faced substantial fines for not meeting fuel-economy requirements, with estimates suggesting potential fines totalling $10.5 billion through 2032. General Motors would have encountered fines of $6.5 billion, followed by Stellantis with $3 billion, and Ford with $1 billion over the same period. The announcement of revised rules has been met with relief by industry stakeholders, including the Alliance for Automotive Innovation, which expressed concerns that the earlier proposal could disincentivize EV production. While environmentalists have criticised the previous rules for assigning overly generous fuel-economy values to EVs, the latest adjustments aim to provide a more realistic assessment. For instance, the original proposal would have significantly reduced the "petroleum-equivalent fuel economy" ratings for EVs, which are crucial for offsetting the values of traditional gas-powered vehicles. The gradual reduction of equivalency ratings through 2030 offers automakers additional time to adapt to evolving regulations. The revised federal rules, which govern all automakers selling vehicles in the US, aim to strike a balance between promoting EV adoption and supporting the continued sale of combustion vehicles, including hybrids. Automakers such as Ford, Toyota, Stellantis, Honda, and Hyundai have reported increased sales of hybrid and plug-in hybrid vehicles in recent months, indicating a growing market for electrified vehicles. However, not all stakeholders are pleased with the softened regulations. Climate action groups and electric vehicle manufacturer Tesla have urged the administration to uphold stricter rules, emphasising the importance of accelerating the transition to cleaner transportation. While the revised rules may provide temporary relief to automakers, advocates argue that stringent measures are necessary to drive meaningful improvements in overall fleet efficiency and reduce emissions. In response to the Energy Department's decision, Reuters cited Pete Huffman, a senior attorney at the National Resources Defense Council (NRDC), who acknowledged the importance of eventually ending higher EV ratings. Huffman stated that the changes will curtail automakers' reliance on "phantom credits" and incentivise the production of more fuel-efficient vehicles, thereby contributing to environmental goals. (With inputs from Reuters)

Biden administration relaxes EV mileage rule, providing relief to automakers

Tech giant Nvidia on Monday announced its plans to strengthen partnerships with Chinese automakers, including BYD, as they endeavour to develop self-driving vehicles and AI-infused infotainment systems to compete globally.

BYD, which surpassed Tesla last year to become the world's largest electric vehicle manufacturer, is set to leverage Nvidia's upcoming generation of in-vehicle chips, known as Drive Thor, to enhance autonomous driving capabilities and other digital features.

Nvidia Vice President for Automotive, Danny Shapiro, highlighted BYD's adoption of Drive Thor during a conference call, stating that it will be integrated into BYD vehicles starting next year.

The collaboration aims to propel BYD's technological advancements across manufacturing processes, supply chain management, and the creation of virtual showrooms.

Several Chinese automakers, including BYD, Xpeng, and GAC Aion's Hyper brand, revealed expanded partnerships with Nvidia on Monday at the chipmaker's GTC developer conference in San Jose, California.

Additionally, Zeekr, a subsidiary of Geely, and Li Auto had previously announced their intention to utilise Nvidia's Drive Thor technology.

These collaborations highlights Chinese automakers' pursuit of cutting-edge technology to bolster their global competitiveness, particularly as they aim to expand sales beyond China's borders and vie with established Western brands like Tesla in domestic markets.

Nvidia's Danny Shapiro emphasised the eagerness of Chinese automakers to innovate and capitalise on favorable regulations to advance autonomous driving capabilities.

Nvidia also disclosed new collaborations in the automotive and industrial sectors during Monday's announcements. The company partnered with US software firm Cerence to adapt large language model artificial intelligence systems for in-car computing.

Furthermore, Nvidia is collaborating with Chinese computer manufacturer Lenovo on large language model deployment.

Soundhound, a subsidiary of Nvidia, is set to utilise the company's technology to develop an in-vehicle voice command system, allowing vehicle owners to access information from a virtual owner's manual through speech commands.

Notably, Nvidia did not explicitly mention specific AI developers, such as OpenAI, in its discussions.

(With inputs from Reuters)

Tech giant Nvidia on Monday announced its plans to strengthen partnerships with Chinese automakers, including BYD, as they endeavour to develop self-driving vehicles and AI-infused infotainment systems to compete globally.

Tech giant Nvidia on Monday announced its plans to strengthen partnerships with Chinese automakers, including BYD, as they endeavour to develop self-driving vehicles and AI-infused infotainment systems to compete globally. BYD, which surpassed Tesla last year to become the world's largest electric vehicle manufacturer, is set to leverage Nvidia's upcoming generation of in-vehicle chips, known as Drive Thor, to enhance autonomous driving capabilities and other digital features. Nvidia Vice President for Automotive, Danny Shapiro, highlighted BYD's adoption of Drive Thor during a conference call, stating that it will be integrated into BYD vehicles starting next year. The collaboration aims to propel BYD's technological advancements across manufacturing processes, supply chain management, and the creation of virtual showrooms. Several Chinese automakers, including BYD, Xpeng, and GAC Aion's Hyper brand, revealed expanded partnerships with Nvidia on Monday at the chipmaker's GTC developer conference in San Jose, California. Additionally, Zeekr, a subsidiary of Geely, and Li Auto had previously announced their intention to utilise Nvidia's Drive Thor technology. These collaborations highlights Chinese automakers' pursuit of cutting-edge technology to bolster their global competitiveness, particularly as they aim to expand sales beyond China's borders and vie with established Western brands like Tesla in domestic markets. Nvidia's Danny Shapiro emphasised the eagerness of Chinese automakers to innovate and capitalise on favorable regulations to advance autonomous driving capabilities. Nvidia also disclosed new collaborations in the automotive and industrial sectors during Monday's announcements. The company partnered with US software firm Cerence to adapt large language model artificial intelligence systems for in-car computing. Furthermore, Nvidia is collaborating with Chinese computer manufacturer Lenovo on large language model deployment. Soundhound, a subsidiary of Nvidia, is set to utilise the company's technology to develop an in-vehicle voice command system, allowing vehicle owners to access information from a virtual owner's manual through speech commands. Notably, Nvidia did not explicitly mention specific AI developers, such as OpenAI, in its discussions. (With inputs from Reuters)

Nvidia expands collaborations with Chinese automakers

A groundbreaking development is set to reshape the landscape of electric vehicles in the United States. Seven major automakers have joined forces to form a new company, determined to challenge Tesla's dominance and capitalize on the biden administration's EV subsidies.

Automakers launch US EV charging network

China's looming export controls on gallium a critical metal for electric vehicles could spell trouble for automakers who have relied on it as a game changer in EV technology.

Gallium crisis: Automakers grapple with supply chain industry

A group representing General Motors, Toyota Moto, Volkswagen and other major automakers said that a $430 billion bill approved Sunday by the US Senate will put achieving US electric-vehicle adoption targets for 2030 in jeopardy.

US Senate bill will jeopardize 2030 EV targets, claims major US automakers

Electric vehicles are quite common on Indian roads now, fully or mild hybrids are also being sold here. In this category of hybrid cars, Japanese major Honda now has recently launched hybrid variant of its popular City Sedan, watch this report for more.

Hybrid electric vehicles on offer in India

Major US and foreign automakers have backed environmental protection agencies new tougher vehicle emission regulations in a court challenge brought by some states.

Automakers back US government's vehicle emissions rules

The US National Highway Traffic Safety Administration (NHTSA) on Sunday reinstated a sharp increase in penalties for automakers whose vehicles do not meet fuel efficiency requirements for model years 2019 and beyond.

High fuel fines for US automakers not meeting fuel economy rules

Car markets in India have been taken over by mid-sized SUVs. Recently, automakers are going to bring Sedans back in the market that is a new thing to India, while Skoda is also trying to make a come back with the new Sedan Slavia. WION's Business Editor Sumit Chaturvedi speaks to Zak Hollis, Brand Director of Skoda Auto India for more insights.

Sedan market will be twice as big in a year: Zak Hollis

India's carmakers are awaiting the festival season this year, they are hopeful that along with pent-up demand sales will be good for them during this period. WION's Sumit Chaturvedi talks to PB Venugopal, President of Lexus India for more perspective.

World Business Watch: Festival period, pent up demand to contribute auto sales says Lexus India

The US National Highway Traffic Safety Administration (NHTSA) said on Wednesday that it may impose higher penalties for automakers failing to meet fuel efficiency requirements in recent years. This is a decision that could cost the industry hundreds of millions of dollars or more.

NHTSA to impose higher penalties for automakers failing to meet fuel efficiency requirements in US

Automakers in North America plan to build more big pickups and sport utility vehicles than electric vehicles. The popularity of Detroit's big trucks is a challenge both to the industry and efforts by lawmakers and regulators to reduce emissions of carbon dioxide and other exhaust gas pollutants from combustion engines.

Popularity of Detroit's trucks poses challenge to efforts of lawmakers to reduce carbon emissions

Automakers in America and the United Auto Workers or UAW union said on Tuesday that they will once again make masks mandatory at all U.S. plants. This decision was made following the Center for Disease Control and Prevention or CDC making masks compulsory for fully vaccinated people as the Delta variant spreads rapidly in the U.S.

Automakers in America to make masks mandatory at all U.S. plants

Wholesale despatches of automakers has picked up pace in July. Maruti Suzuki, Hyundai Motors, Tata Motors all reported strong growth numbers. Honda cars, Nissan also reported healthy growth in sales last month.

Wholesale despatches of automakers pick up pace in July

India’s Mahindra & Mahindra expects it will take at least another two years for car sales to return to their pre-pandemic peaks, but a slow pace of vaccinations could hurt recovery prospects.

World Business Watch: Indian automakers expect sales to rebound in two years

Hyundai Motor Group said on Tuesday that it plans to invest $34.65 billion&nbsp;in mobility technology and strategic investments by 2025, as South Korea's top automaker accelerates its attempts to catch up in the self-driving car race.

The plan, which Hyundai said encompassed autonomously, connected and electric vehicles, comes after the company and two of its affiliates announced an investment of $1.6 billion in a joint venture with US&nbsp;self-driving tech firm Aptiv.

Hyundai's plan also received a boost from the South Korean government, which said on Tuesday that it plans to spend 1.7 trillion won from 2021-27 to boost autonomous vehicle technology.

The government expects Hyundai to launch a nationwide service of fully autonomous cars to fleet customers in 2024 and the general public by 2027.

This push is part of a blueprint for future cars President Moon Jae-in announced at an event at Hyundai Motor's research centre near Seoul.

The government said it was conducting a feasibility study for its proposed funding boost, which would include parts, systems and infrastructure. It said Korea lags behind in self-driving car software and key parts like sensors and chips, despite the country's advanced, fifth-generation mobile data network.

South Korea also said it would prepare a regulatory and legal framework to ensure the safety of autonomous cars by 2024.

"We will actively transition from combustion-engine cars to future cars," Industry Minister Sung Yoon-mo said at a media briefing on Tuesday.

The government also aims to lay the technological and legal groundwork for the demonstration of flying cars in 2025. Hyundai Motor's executive vice-chairman Euisun Chung has said the company is looking at developing flying cars, which could be commercialized ahead of the most advanced self-driving cars.

Hyundai Motor Group said on Tuesday that it plans to invest $34.65 billion in mobility technology and strategic investments by 2025, as South Korea's top automaker accelerates its attempts to catch up in the self-driving car race.

Hyundai Motor Group said on Tuesday that it plans to invest $34.65 billion in mobility technology and strategic investments by 2025, as South Korea's top automaker accelerates its attempts to catch up in the self-driving car race. The plan, which Hyundai said encompassed autonomously, connected and electric vehicles, comes after the company and two of its affiliates announced an investment of $1.6 billion in a joint venture with US self-driving tech firm Aptiv. Hyundai's plan also received a boost from the South Korean government, which said on Tuesday that it plans to spend 1.7 trillion won from 2021-27 to boost autonomous vehicle technology. The government expects Hyundai to launch a nationwide service of fully autonomous cars to fleet customers in 2024 and the general public by 2027. This push is part of a blueprint for future cars President Moon Jae-in announced at an event at Hyundai Motor's research centre near Seoul. The government said it was conducting a feasibility study for its proposed funding boost, which would include parts, systems and infrastructure. It said Korea lags behind in self-driving car software and key parts like sensors and chips, despite the country's advanced, fifth-generation mobile data network. South Korea also said it would prepare a regulatory and legal framework to ensure the safety of autonomous cars by 2024. "We will actively transition from combustion-engine cars to future cars," Industry Minister Sung Yoon-mo said at a media briefing on Tuesday. The government also aims to lay the technological and legal groundwork for the demonstration of flying cars in 2025. Hyundai Motor's executive vice-chairman Euisun Chung has said the company is looking at developing flying cars, which could be commercialized ahead of the most advanced self-driving cars.

Hyundai Motor Group to invest $35 billion in future automotive tech

Toyota Motor Corp and Suzuki Motor Corp on Thursday announced a basic agreement to produce cars for each other in India as Toyota aims to increase its market share in the fast-growing country dominated by its smaller rival.

The automakers said in a statement that the agreement would cover vehicles including gasoline hybrids.&nbsp;

Suzuki will supply its Baleno hatchback and Vitara Brezza compact SUV to Toyota, while Toyota will produce the Corolla sedan for Suzuki.

Toyota and Suzuki will produce the models for each other as original equipment manufacturers, and these will be included in each others' branded offerings, the companies said.

The agreement deepens a partnership announced by the two Japanese automakers a year ago, under which they will share expertise on new technologies and parts supply.&nbsp;

In November, Toyota and Suzuki said they would cooperate in selling electric cars in India from around 2020.

The automakers said in a statement that the agreement would cover vehicles including gasoline hybrids

Toyota Motor Corp and Suzuki Motor Corp on Thursday announced a basic agreement to produce cars for each other in India as Toyota aims to increase its market share in the fast-growing country dominated by its smaller rival. The automakers said in a statement that the agreement would cover vehicles including gasoline hybrids. Suzuki will supply its Baleno hatchback and Vitara Brezza compact SUV to Toyota, while Toyota will produce the Corolla sedan for Suzuki. Toyota and Suzuki will produce the models for each other as original equipment manufacturers, and these will be included in each others' branded offerings, the companies said. The agreement deepens a partnership announced by the two Japanese automakers a year ago, under which they will share expertise on new technologies and parts supply. In November, Toyota and Suzuki said they would cooperate in selling electric cars in India from around 2020.

Toyota, Suzuki agree to produce cars for each other in India

The Nifty rose 0.7 per cent on Monday to close above 10,000 points for the first time in more than a month, as automakers such as Maruti Suzuki Ltd gained after an increase in the goods and services tax was less wide-ranging than expected.

The BSE Sensex climbed 0.61 per cent to 31,882.16, while the broader NSE Nifty rose 0.72 per cent to 10,006.05, closing above the 10,000 level for the first time since August 7.

Shares of Maruti Suzuki closed 2.15 per cent higher. Meanwhile, IndusInd Bank Ltd rallied 5.6 per cent after saying it had entered into exclusive talks with Bharat Financial Inclusion Ltd for a potential merger.

Automakers such as Maruti Suzuki Ltd gained after an increase in the goods and services tax was less wide-ranging than expected.

The Nifty rose 0.7 per cent on Monday to close above 10,000 points for the first time in more than a month, as automakers such as Maruti Suzuki Ltd gained after an increase in the goods and services tax was less wide-ranging than expected. The BSE Sensex climbed 0.61 per cent to 31,882.16, while the broader NSE Nifty rose 0.72 per cent to 10,006.05, closing above the 10,000 level for the first time since August 7. Shares of Maruti Suzuki closed 2.15 per cent higher. Meanwhile, IndusInd Bank Ltd rallied 5.6 per cent after saying it had entered into exclusive talks with Bharat Financial Inclusion Ltd for a potential merger.

Nifty closes at over one-month high

Executives at&nbsp;Asian&nbsp;automakers with factories in Britain, largely set up to export to the European Union, say they could slow investments in Britain or pause them for now, after the country voted to leave the 28-nation bloc.

Automakers, including Toyota &nbsp;and Nissan, had been among the manufacturers that have warned that a period of uncertainty would follow a Brexit vote, as trade and labour deals with Europe are renegotiated. Most on Friday estimated it could take around two years.

Toyota and Nissan had said in the run-up to the vote that continued membership of the European Union was preferable for their operations: a vote to leave would create new challenges for an industry that employs some 800,000 people in Britain.

&quot;We don&#39;t have any choice but to be more cautious with our investment decisions, including moves like whether to produce a new or significantly redesigned vehicle model in the UK,&quot; said one official at a global automaker with manufacturing capacity in Britain, speaking on condition of anonymity.

Tata Motors&#39; Jaguar Land Rover is Britain&#39;s largest carmaker, followed by Nissan, which has been in Britain for three decades and makes 475,000 cars a year in the country, most of them for export inside the European Union and beyond.

Sunderland in northern England, where Nissan has its operations, was among the constituencies that surprised pundits by voting to leave. 
 
&quot;Big question for automakers, is what kind of trade deals with the EU would be negotiated. That is the big unknown,&quot; a second executive at a global automaker said.

&nbsp;

TARIFF-FREE EXPORTS

Exports from Britain to the European Union are free of tariffs and duties. Toyota has said duties under new trading deals could be as much as 10 per cent, hitting either prices or margins, and denting sales.

Toyota produced about 190,000 cars in Britain last year. Of that, 75 per cent went to the European Union. Only 10 per cent was shipped and sold within Britain.

South Korea&#39;s auto association said it was worried a departure could revive a 10-per cent tariff on exports of passenger vehicles to UK -- unless a separate deal is negotiated.

&nbsp;&quot;This could inevitably undermine the price competitiveness of South Korean automakers in UK, as opposed to Japanese and German rivals which have production bases there,&quot; said Kim Tae-nyen, vice president at the Korea Automobile Manufacturers Association (KAMA).

Aside from Toyota, Tata and Nissan, others manufacturing in Britain include BMW, GM and Honda.

Honda produces around 140,000 vehicles per year, including the CR-V crossover SUV and Civic sedan at its plant in Swindon. Half of its production is exported to the EU.

Some industry officials have said the exit even raises the prospects of those automakers moving Britain-based manufacturing capacity elsewhere in the EU bloc.

For now, officials said efforts would turn to lobbying hard for better trade deals.

&quot;Obviously, trading deals to be worked out subsequently could be a worse situation than we have now, or better, or all the same. We don&rsquo;t know, and that&rsquo;s the problem,&quot; said the second executive.

(Reuters)

According to Toyota and Nissan, Britain's exit will create new challenges for the industry that employs 800,000 people in Britain

Executives at Asian automakers with factories in Britain, largely set up to export to the European Union, say they could slow investments in Britain or pause them for now, after the country voted to leave the 28-nation bloc. Automakers, including Toyota and Nissan, had been among the manufacturers that have warned that a period of uncertainty would follow a Brexit vote, as trade and labour deals with Europe are renegotiated. Most on Friday estimated it could take around two years. Toyota and Nissan had said in the run-up to the vote that continued membership of the European Union was preferable for their operations: a vote to leave would create new challenges for an industry that employs some 800,000 people in Britain. "We don't have any choice but to be more cautious with our investment decisions, including moves like whether to produce a new or significantly redesigned vehicle model in the UK," said one official at a global automaker with manufacturing capacity in Britain, speaking on condition of anonymity. Tata Motors' Jaguar Land Rover is Britain's largest carmaker, followed by Nissan, which has been in Britain for three decades and makes 475,000 cars a year in the country, most of them for export inside the European Union and beyond. Sunderland in northern England, where Nissan has its operations, was among the constituencies that surprised pundits by voting to leave. "Big question for automakers, is what kind of trade deals with the EU would be negotiated. That is the big unknown," a second executive at a global automaker said. TARIFF-FREE EXPORTS Exports from Britain to the European Union are free of tariffs and duties. Toyota has said duties under new trading deals could be as much as 10 per cent, hitting either prices or margins, and denting sales. Toyota produced about 190,000 cars in Britain last year. Of that, 75 per cent went to the European Union. Only 10 per cent was shipped and sold within Britain. South Korea's auto association said it was worried a departure could revive a 10-per cent tariff on exports of passenger vehicles to UK -- unless a separate deal is negotiated. "This could inevitably undermine the price competitiveness of South Korean automakers in UK, as opposed to Japanese and German rivals which have production bases there," said Kim Tae-nyen, vice president at the Korea Automobile Manufacturers Association (KAMA). Aside from Toyota, Tata and Nissan, others manufacturing in Britain include BMW, GM and Honda. Honda produces around 140,000 vehicles per year, including the CR-V crossover SUV and Civic sedan at its plant in Swindon. Half of its production is exported to the EU. Some industry officials have said the exit even raises the prospects of those automakers moving Britain-based manufacturing capacity elsewhere in the EU bloc. For now, officials said efforts would turn to lobbying hard for better trade deals. "Obviously, trading deals to be worked out subsequently could be a worse situation than we have now, or better, or all the same. We don’t know, and that’s the problem," said the second executive. (Reuters)

Asian car makers fret over uncertainty ahead after Brexit vote

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