Khaberni - Amid the fallout from the war on Iran, India is forced to adjust the operation of car factories and component suppliers, to rationalize fuel consumption and ensure the continuity of production chains despite oil and gas supply disruptions.
An Indian government memo, reviewed by «Reuters», revealed that New Delhi has asked car manufacturing companies and production component suppliers to reduce their operational schedules, as part of efforts to rationalize fuel consumption amid growing concerns over supply shortages due to disruptions in oil and gas imports caused by the war with Iran.
The memo, dated March 25, indicated that the Ministry of Heavy Industries urged companies to switch factory operations from oil fuel to electricity, along with expanding the use of recycled aluminum or other alternatives, in the face of widening deficits and rising production costs.
India is one of the world's largest importers of oil and gas, reflecting the sensitivity of its economy to any disruptions in energy flows. This move underscores the growing government concern about the impact of the conflict on supply chains and the availability of vital raw materials for the industry.
As of now, the Indian Ministry of Heavy Industries has not issued an official comment regarding these directives.
In a related context, the government had already prioritized gas supplies to the domestic sector at the expense of the industrial sector, which currently receives only about 80% of its average needs.
An executive in an Indian car manufacturing company said: "I don't know to what extent we can adjust the production processes inside the factories, but it is certain that this war might be prolonged, and we must prepare for extended scenarios."
