The Federation of Automobile Dealers Associations (Fada) on Monday flagged delays in vehicle deliveries from automakers across the commercial, passenger and two-wheeler segments—the first sign of supply disruption in India’s auto industry due to the US-Iran war.
In its near-term outlook, the dealers’ body said that over half of the auto dealers it surveyed reported supply-side challenges owing to the war, with the impact most evident on commercial vehicles.
“Our survey reveals that 53.2% of dealers have experienced some form of supply or dispatch disruption linked to the ongoing conflict, with 17.1% reporting significant delays of three or more weeks,” Fada said.
And the impact on dealer inventories could worsen if the situation doesn’t resolve in the next few weeks, warned C.S. Vigneshwar, president, Fada, in an interview with Mint. “Disruption means there’s been a certain particular specification of vehicles the manufacturer is not able to give us.”
Vigneswar, however, said consumer purchasing decisions remain unaffected, though dealers are urging customers to expedite purchases amid concerns over potential production disruptions.
“We’ve been telling customers, please come and pick up your vehicles, because there could be a production issue. If there’s a production issue, you won’t be able to come and pick up the vehicles of your choice,” Vigneshwar added.
War shock
To be sure, Fada’s concerns stem from the impact on production of automobile companies that depend on liquefied petroleum gas (LPG) and piped natural gas (PNG), which are mainly imported. To prioritize households, the government has diverted a share of LPG from industries.
For the industry, the disruption comes at a time when it is witnessing record sales across segments such as passenger vehicles, commercial vehicles, and two-wheelers.
In 2025-26, two-wheeler sales grew 13.4% to 21.4 million units, passenger vehicle sales rose 13% to 4.7 million units, and commercial vehicle sales increased 11.74% to 1.06 million units, according to Fada data.
The dealers’ body highlighted three major concerns for the months: an overall economic slowdown, OEM supply disruptions and model unavailability, and rising fuel prices dampening demand.
“The near-term risk lies in the speed and severity with which the evolves and transmits to fuel prices, supply chains, and broader consumer sentiment,” Fada said.
None of the automobile companies has so far highlighted any significant impact on their production due to . However, they have highlighted rising cost pressures.
In March, the Automotive Component Manufacturers Association of India (Acma) flagged to the government that small component makers face the threat of production disruption if LPG and PNG supplies do not improve.
“Any disruption or uncertainty in the availability of LPG/PNG could impact production schedules of critical automotive components, particularly for MSME units, which have limited flexibility to transition to alternative energy sources in the short term,” read the Acma letter to the Centre.
Since the start of the war on 28 February, the Nifty Auto has fallen by 13%, compared with a 9% decline in the benchmark Nifty 50 Index.
, Tata Motors Passenger Vehicles Ltd, Hyundai Motor India Ltd, Mahindra and Mahindra Ltd, Hero MotoCorp Ltd, Honda Motorcycle and Scooter India Pvt. Ltd, Bajaj Auto Ltd, TVS Motor Co. Ltd and Ashok Leyland Ltd did not respond to Mint‘s emailed queries.