April 14 (Reuters) – India’s auto industry body on Tuesday flagged concerns on the possible adverse impact of the Middle East war on automotive production, input and fuel prices, and freight rates.
Here are some key details:
* The West Asia conflict is expected to pose short-termchallenges for the auto industry, Shailesh Chandra, president ofSociety of Indian Automobile Manufacturers (SIAM), said. * Uncertainties arising from the West Asia conflict,particularly prices of crude oil and commodities, higherexchange rates and disruptions in shipping routes, remain aconcern for the auto sector, the industry body said. * In the near term, the conflict may weigh on exportvolumes, and the evolving situation reinforces the need forcalibrated supply chains and diversification of energy inputs,analysts at Antique Stock Broking said. * In the entry-level segment in April so far, buyerenquiries are strong, but converting them to sales is takinglonger, the SIAM president said. * Car sales by manufacturers to dealers in the world’sthird-largest car market rose 7.9% to 4.6 million units in thefinancial year 2026, industry data showed, compared to theprevious fiscal year’s 2%, as consumer sentiment improved due totax cuts. * In September 2025, India slashed taxes on larger SUVs to40% as an additional levy was dropped and on small cars andtwo-wheelers to 18% from 28%, helping support demand acrosssegments. * Total domestic two-wheeler sales in the financial year2026 rose 10.7% on-year compared to 9.1% growth last year, theindustry data showed.
(Reporting by Aditi Shah and Anuran Sadhu; Editing by Harikrishnan Nair)
