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West Asia War Fuels EV Spike as SIAM Warns of ‘Precarious’ Risks for India’s Auto Industry

SIAM says cost and supply pressures could force vehicle price increases within a month.

Overview

  • SIAM, which briefed reporters Tuesday, called the outlook precarious due to gas, commodity and shipping risks and warned car prices may rise within four to five weeks.
  • Shailesh Chandra said Tata Motors Passenger Vehicles saw a 20–25% jump in March electric-car demand that he linked to fears of higher fuel prices from the conflict.
  • The industry has kept production running for now, though companies turned to air freight to plug supply gaps, which lifted logistics costs.
  • Plants reported shortages of propane and ethylene used in paint shops and heat-treatment lines, prompting shifts from LPG to piped natural gas to use fuel more efficiently.
  • Passenger-vehicle sales in FY2025-26 hit a record 4.64 million, up 7.9%, while electric-car registrations rose about 83% as tax relief and lower loan rates supported demand.