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Informist, Tuesday, Apr. 14, 2026

 

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--SIAM head: Ended FY26 strong but West Asia conflict poses risk for industry 
--SIAM head: West Asia crisis led to higher demand for Tata Motors cars Mar 
--SIAM head: Environment has become stressed because of West Asia conflict 
--SIAM head: Industry has managed supplies so far amid West Asia conflict 
--SIAM head: Need to see consumer behaviour if fuel price is hiked 
--SIAM head: Enquiries strong but conversion delayed for some segments 
--SIAM head on Delhi EV policy: Enablers from states best way to promote EVs 
--SIAM head: Stress has increased in April but production holding up so far 
--SIAM head: Will continue to engage with govt on fuel blending 
--SIAM head: There could be some headwinds in exports to Mexico, West Asia 
--SIAM head: To discuss revised draft on emission norms in next two days 
--SIAM head: West Asia crisis has fuelled interest towards electric vehicles
 

 

NEW DELHI – The war in West Asia has led to supply stress for the automobile sector, especially in the first two weeks of April, as freight rates increased due to longer routes. Despite this, companies have managed supplies so far and production has held up, Shailesh Chandra, president of the Society of Automobile Manufacturers, told reporters Tuesday.

 

"There is a triangulated view coming from the industry leaders. For passenger vehicles, there was a sharp rise in demand in March. We tried to ascertain what part was due to the West Asia crisis...It was a mix of factors. But 20-30?mand was coming from the West Asia...at least, we can see that in Tata Motors cars. So definitely, there is an aprehension and it was more intense in March that fuel availability might be an issue in March. So far, we have not seen rise in fuel prices to that extent," Chandra said.

 

According to Chandra, the industry needs to see consumer behaviour if fuel prices are hiked. "So far we have not seen any significant disruption in the supply chain, except that the costs have escalated. There might be potential price increases that we might see...To what extent original equipment manufacturers will be able to absorb, and to what extent the commodity prices will increase, will be clear in the next four to five weeks," Chandra said.

 

Chandra said the West Asia crisis has fuelled interest towards electric vehicles. For some segments, enquiries have remained strong but actual purchase decisions have been delayed, he said.

 

On the Delhi electric vehicle policy, Chandra said many states have been coming with such policies. "Our position from SIAM is that enablers are the best way...The governments have definitely taken the role of enablers but we also have to see how the draft EV policy doesn't move towards too much mandates," he added. 

 

Chandra also said industry representatives would enagage with the government on ethanol blending. SIAM will discuss the revised draft for the third phase of the corporate average fuel economy norms in the next two days, he said . According to reports, the proposed CAFE-III regulations will be in force from Apr. 1, 2027, to Mar. 31, 2032.

 

Automakers will have to comply with the deadline, as the government is unlikely to extend the implementation deadline, according to a report by the Press Trust of India. The proposed norms require manufacturers to comply with more stringent fleet-wide fuel efficiency and carbon dioxide emission standards.

 

Companies exported a total of 546,264 vehicles in March, up 16% on year. Of these, exports of total passenger vehicles grew only 2.2% on year to 78,922 units last month.

 

Going ahead, Indian vehicle makers may see some headwinds in exports to Mexico, mainly due to import duty of up to 50% imposed by Mexico on automobiles and automotive components coming from India since Jan. 1. Headwinds for Indian exports could also be seen coming from West Asia amid the ongoing geopolitical crisis in the region.  End

 

Reported by Astha Oriel, Sagar Sen, Shakshi Jain, and Shweta

Edited by Avishek Dutta

 

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