India's Auto Sector Faces Threat: Iran-Israel Conflict Disrupts Gas Supply, Straining Supply Chains
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India's Auto Boom at Risk: Iran-Israel War Chokes Gas Supplies, Straining Supply Chains
M
Moneycontrol•19-03-2026, 17:29
India's Auto Boom at Risk: Iran-Israel War Chokes Gas Supplies, Straining Supply Chains
•India's auto industry faces production slowdowns due to gas shortages caused by the Iran-Israel conflict, threatening growth in the world's third-largest car market.
•Parts suppliers to major carmakers like Maruti Suzuki, Tata Motors, and Mahindra are already reporting gas shortages, indicating early supply chain disruptions.
•The disruption hits as India's car demand soars to record levels, with sales expected to exceed 4.5 million units this fiscal year, leaving manufacturers with little excess inventory.
•India, heavily reliant on Middle East energy, imports 50% of its natural gas, primarily from Qatar, which has shut its refinery after Iranian attacks.
•While automakers haven't officially cut production, some factories are operating below capacity, and small manufacturers are particularly vulnerable to gas supply issues.
