India’s auto boom at risk as Iran-Israel war chokes gas supplies, straining supply chains
NEW DELHI: 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.