India asks auto industry to optimise production as Iran war hurts energy supplies - Reuters

Reuters
March 26, 2026
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3 min read

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India asked auto industry to optimize production as Iran war disrupts energy supplies.

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Global auto supply chains and prices may be affected by Indian production constraints from Iran conflict-related energy disruptions.

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India's government has asked the automotive industry to optimize production as regional conflict disrupts energy supplies to the country. The request comes as escalating tensions in Iran affect oil availability and pricing in a region critical to India's energy imports. India, which relies heavily on Persian Gulf oil, faces pressure to manage fuel costs and ensure stable supplies amid geopolitical uncertainty. The automotive sector, energy-intensive and export-dependent, is being asked to adjust output to ease demand on constrained energy resources. The move reflects New Delhi's effort to insulate its economy from external shocks while maintaining industrial competitiveness.

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