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Most Indian Auto Dealers Report Supply Disruptions as Costs Climb, FADA Says

Rising oil and metal costs tied to the West Asia war now threaten supply, pricing, buyer confidence.

Overview

  • An industry survey by the Federation of Automobile Dealers Associations found 53.2% of dealers facing supply or dispatch disruptions and 17.1% reporting delays of three weeks or more.
  • The conflict has lifted oil, gas, and key metal prices, which in turn raise fuel, logistics, and raw‑material costs across the auto supply chain.
  • Dealers said higher pump prices are shaping buyer choices, with 36.5% reporting a moderate to significant hit to purchase decisions.
  • Maruti Suzuki signaled likely price increases due to higher commodity costs linked to the geopolitical shock.
  • Retail sales remained strong in March and across FY26, and FADA cautioned that April could be steady to softer depending on how the conflict affects fuel costs, supply, and consumer confidence.