New Delhi, March 20: The ongoing conflict in the Gulf region may pose supply challenges for India’s automobile industry in the coming weeks. However, there has been no direct impact on factories so far. Industry experts warn that if the situation persists, effects could begin to manifest within four to six weeks.
According to industry officials, the primary concern revolves around gas supply, as gas plays a crucial role in many manufacturing processes. Commercial LPG and other industrial gases are essential for operations such as paint shops, casting units, and forging. A sustained shortage could lead to increased raw material costs.
Reports from NDTV Profit indicate that several suppliers linked to the auto sector have already reported delays due to rising tensions in the Middle East. Notably, gas supplies from Qatar have nearly halted due to disruptions caused by Iranian missile and drone attacks.
Currently, companies have a component stock that can last for four to six weeks, providing temporary relief. However, industry experts caution that if this crisis extends beyond two months, significant challenges could arise, particularly in energy-intensive processes.
Should gas shortages and maritime transport disruptions escalate, production could also be affected.
So far, major auto manufacturers like Mahindra & Mahindra, Maruti Suzuki, Tata Motors, and Kia India have stated that their production remains unaffected. According to these companies, the supply chain is currently stable, but they are closely monitoring the situation.
Companies are maintaining regular contact with their suppliers, especially those heavily reliant on imports or gas. Industry officials note that the situation is evolving rapidly, and companies are prepared to make swift decisions if necessary.
A report highlights varying levels of gas dependency among different companies. Maruti Suzuki’s factories rely on gas for approximately 74% of their operations, while Mahindra & Mahindra stands at 38%, Tata Motors at 33%, and Hyundai Motor at 31%.
This indicates that prolonged disruptions in gas supply will impact companies differently.
At present, India’s auto sector appears secure from this crisis, but the next few weeks will be crucial in determining whether the situation escalates into a significant supply crisis.
Arpit Soni has had a passion for journalism since the beginning. Now he has turned this hobby into his profession. Arpit, who is a resident of Udaipur, enjoys editing and writing news related to journalism. He has worked as a Senior Content Producer in several important roles at Bhaskar, Patrika, Pratahkal, Punjab Kesari, and Times. Arpit completed his schooling in Udaipur and Jaipur. He has been working in the media industry for more than 10 years, and his journey is still continuing. ✍️📚
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