Govt asks auto industry to optimise production as Iran war hurts energy supplies

The auto sector is already facing headwinds from LNG supply risks and commodity cost trends. Government intervention highlights the severity of energy supply concerns, potentially impacting volume growth and profitability.

• •India's government is urging car and parts makers to speed up production plans.
• •The move aims to save fuel due to worries about oil and gas import disruptions from the Iran war.
• •Companies are asked to switch factory power from oil to electricity.
• •Using recycled materials is suggested to manage rising costs and shortages.
• •Risk flag: Escalation of the Iran war could further disrupt energy supplies.