India Urges Automakers to Cut Fuel Use Amid Iran war Disruptions
India has asked automakers and auto component manufacturers to optimise production and reduce fuel consumption as concerns grow over energy supply disruptions linked to the ongoing Iran conflict. The government advisory urges companies to streamline operations and minimise idle fuel usage, reflecting rising pressure on oil and gas imports from the Gulf region. As one of the world’s largest energy importers, India is increasingly vulnerable to such geopolitical shocks.
The Ministry of Heavy Industries has also encouraged companies to shift from oil-based fuels to electricity wherever feasible, and to adopt cost-saving measures such as using recycled aluminium and alternative materials. These steps are aimed at easing demand pressures as fuel shortages and rising input costs begin to impact industrial production. The government has already prioritised gas supply for households, leaving industries with reduced access to energy resources.
Auto suppliers linked to major manufacturers like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra are reportedly facing gas shortages even as vehicle demand remains strong. Industry executives warn that prolonged conflict could further strain supply chains, forcing companies to adapt quickly to a potentially long-lasting disruption in energy availability.
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