India Auto Industry Gas Shortage from Iran Conflict

India's automotive industry is facing significant production slowdowns and assembly-line disruptions due to a severe gas shortage. This shortage stems from the Iran conflict, which has impacted energy supplies from the Middle East, particularly Qatar, a major natural gas provider to India. Iranian attacks have led to the shutdown of a Qatari refinery and reduced shipments through the Strait of Hormuz. While India seeks alternative gas sources from the United States, Norway, and Russia, the government has prioritized domestic gas supply over industrial use. Major carmakers like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra are experiencing operational stress, with some factories running below capacity. Parts suppliers, including Kirloskar Ferrous Industries and Hindalco Industries, have halted production or declared force majeure, further exacerbating supply chain issues. S&P Global===S&P Global Mobility has already lowered its forecast for India's light vehicle production for 2026.