Rising Geopolitical Tensions Threaten India's Auto Industry: FADA President Vigneshwar

FADA President C.S. Vigneshwar raised concerns over the impact of prolonged West Asian conflicts on India's automotive sector. He highlighted challenges such as reduced exports and supply chain disruptions, while advocating for alternative resources and EV policy advancements as key areas for sustaining growth.

During the Vyapar Delhi event, Federation of Automobile Dealers Associations (FADA) President C.S. Vigneshwar expressed significant worries about the future of India's automotive sector amid escalating geopolitical tensions in West Asia. Speaking to ANI, Vigneshwar warned that prolonged conflicts could severely impact export volumes and the supply of crucial commodities like oil and aluminium.

While acknowledging the resilience of the domestic market, which has seen noteworthy growth, he pointed out that extended geopolitical instability poses challenges for both production and trade. Vigneshwar emphasized the automotive industry's reliance on oil, lubricants, and aluminium, and noted the government's efforts to mitigate impacts, though gas and aluminium supply challenges persist.

He further addressed potential disparities between domestic and international sales, stressing that a slowdown in exports remains a primary industry concern. Despite a 13% domestic growth rate offering some buffer, Vigneshwar highlighted the urgent need to manage supply chain disruptions, explore alternative resources, like domestic lithium reserves, and foster a robust EV policy framework.

(With inputs from agencies.)