India’s auto sector continues to follow the developments and global energy trends, said Vinnie Mehta, Director General of the Automotive Component Manufacturers Association (ACMA)
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JOTHI RAMALINGAM B
Even though India’s automobile companies have stated that vehicle exports have not significantly taken a hit from the Iran-Israel war, the components sector has noted potential delays in supplies of auto parts to the European Union (EU). This is due to several ships being anchored near the Red Sea or being ordered to return to port.
“While the crisis in West Asia and rising crude prices may create some near-term cost pressures, the industry today is far more resilient and better prepared to manage volatility. Demand fundamentals remain strong, and we expect growth momentum to continue. At the same time, we will continue to closely monitor geopolitical developments and global energy trends that could impact the sector,” Vinnie Mehta, Director General of the Automotive Component Manufacturers Association (ACMA) of India, told businessline.
With countries and stakeholders taking stock of the situation, shipments through the Strait of Hormuz have been ceased; shipments to Dubai are yet to be offloaded, and ships are either anchored, asked to turned back, or have offloaded and remain anchored there, he added.
Another industry official noted that freight and insurance costs are bound to rise – all of which must be factored in at the final port. “We also have to meet the timelines for export or else vehicle production suffers. You have to go through the Red Sea, Suez Canal, and reach Europe, and now you have to take a longer route; cost will go up and [it is a] challenging situation for availability of containers too,” he added.
Diverse portfolio
Rahul Bharti, Senior Executive Officer of Corporate Affairs at Maruti Suzuki India (MSIL), said the company is “closely monitoring the situation”. MSIL is the largest exporter of vehicles from India, serving approximately 100 countries.
However, he also noted that MSIL’s exposure to West Asia as an export region is not very high.
“This year, for example, it accounts for about 12.5 per cent of our total exports. In fact, as we export to nearly 100 countries, we have ensured that our portfolio is well diversified and inherently de-risked… We are not just increasing exports, we are expanding them in a broad-based manner, ensuring that we remain de-risked at the same time,” Bharti added.
Another industry official mentioned that there is currently little impact on vehicle exports from India resulting from the Iran-Israel war. “We do export some vehicles to Saudi Arabia, but those are not in great numbers, so the impact is less. Our markets, in South Africa and Latin America, are different for which routes are different,” he added.
Published on March 2, 2026