New Delhi: India’s Ministry of Heavy Industries (MHAI) has issued an advisory to auto manufacturers and component makers, calling for production optimisation
and lower fuel consumption. This advisory was issued in the face of growing concerns over potential oil and gas supply disruptions owing to the Israel-US-Iran conflict.
The conflict has resulted in bottlenecked commercial tanker movement through the Strait of Hormuz chokepoint in the past month.
According to a recent report by Reuters, automotive brands operating in India have been urged to streamline operations and pull down idle fuel usage. “Production schedules may be optimised to minimise idle and standby fuel consumption.”
MHAI’s recommendations for production
The MHAI advisory also recommends shifting factory operations from oil-based fuels to electricity, where it is technically possible. The companies have been encouraged to adopt cost-saving measures, including using recycled aluminium and alternative materials for non-critical applications, with input costs starting to surge.
Since the government has prioritised gas supply for households, industrial gas availability appears to have decreased by around 80 per cent from standard levels. In fact, suppliers linked to big brands like Maruti Suzuki, Mahindra and Tata are even starting to face gas supply constraints despite the vehicle demand still staying strong.
