With the share market in India showing signs of being affected by the developments in the Middle East, it is quite likely that the supply chains, including those that influence the auto industry, will see some signs of strain eventually if not at once. 
The likely reasons for this is the effect of an escalation in crude oil prices primarily. The others would involve shipping route disruptions such that the cargo ships carrying automotive parts, tools and equipment are unable to navigate their usual shipping lanes. This would result in delays and cost escalation as longer routes are chosen for safe passage. The example of Tesla and Volvo suspending manufacturing in early 2024 due to the conflict in the Red Sea is not yet lost. 
In terms of trade and tariffs, the conflicts and tensions between countries can be detrimental. The cost for manufacturers using materials like steel and aluminum can escalate at a rapid pace. 
With the Middle East known for its oil reserves, the current conflict and the way it is progressing is already having an effect on the crude prices. If it gets bad than this, large importing markets like India could see their crude import bills rise further. As it is, the prices of fossil fuels are already high with over 200 percent taxes. 
Any disruption in oil supply will impart considerable volatility, transportation cost increase and strain on an economy that is already fighting post-Covid inflation. 

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South Korean automotive major Hyundai Motor India has outlined a new investment of INR 6.94 billion towards stamping tool and panel production for vehicles.

The passenger vehicle maker aims to strengthen its domestic footprint along with the foundation of manufacturing by establishing the infrastructure of stamping tool.

This the company believes will drive stability in its supply chain as it will be able to have in-house access to stamping tool and the manufacturing of vehicle panels.

Currently, Hyundai Motor India works with over 194 vendors that has enabled it to localise more than 1,238 parts. This has enabled the company to save around USD 672 million in 2019. In fact, the company’s newest electric vehicle offering the Creta Electric SUV already comes with about 92 percent localised parts.

Kobelco Construction Equipment India (KCEI), a subsidiary of Japan-based Kobelco Construction Machinery Co, has attained a new production milestone in the country.

The company recently rolled out its 20,000th made-in-India excavator from its plant in Sri City, Andhra Pradesh. What’s more, the company as part of its India outlook has also announced setting up a new R&D facility, which will focus on developing new technologies, engineering solutions, customisation and product innovation.

At present, the Sri City facility has a production capacity of 3,000 units per annum and supplies excavators for both domestic and 16 international markets. The company claims it currently enjoys over 25 percent market share in India.

Takemichi Hirakawa, Managing Director & CEO, Kobelco Construction Equipment India, said, "Reaching the 20,000th excavator production milestone reflects our commitment to delivering high-quality construction equipment. India has emerged as an important manufacturing base for Kobelco, meeting both domestic demand and expanding our global footprint. As part of our long-term growth strategy, we remain aligned with the ‘Make in India’ initiative and continue to invest in R&D, strengthening our capabilities."

Hindalco Industries, the metals flagship company of the Aditya Birla Group, has unveiled its new brand identity, which it shared marks its transformation from a materials supplier to an engineered solutions provider.

The new identity represents its focus from just being a supplier of metals to a partner with a focus on closing the ecosystem loop right now from sourcing, refining, co-developing and recycling. The company has also outlined an ambitious INR 450 billion towards strengthening aluminium, copper and specialty alumina business.

In an event held in Mumbai, the company displayed its new range of solutions targeted for various industries including B2C, B2B and even B2G. For the automotive industry the company is looking to work together with automakers and suppliers, especially supporting the transition towards lightweighting vehicles and electrification.

Interestingly, the company has also commenced what it claims is India’s first e-waste recycling plant by Birla Copper and a 100MW renewable energy project in Odisha.

Kumar Mangalam Birla, Chairman, Aditya Birla Group unveiled the new identity and said, “Today, Hindalco is a mini conglomerate in itself, with 52 plants across 10 countries producing a diverse portfolio of high-quality products that contribute to the global economy. We are committing INR 450 billion across aluminium, copper and specialty alumina businesses to deliver both upstream and next-generation high-precision engineered products”. 

“Hindalco’s new identity reflects our role as a catalyst for change, a problem solver and a co-creator of new solutions that power progress across industries. And above all, it embodies our commitment to always being a force for good,” added Birla.

The new logo features a bold and dynamic ‘H,’ which the company shared represents forward momentum and reinforces its role in shaping India’s industrial and sustainable future.

Satish Pai, MD, Hindalco Industries, added, “This marks a pivotal moment in Hindalco’s journey as we transition from a metals manufacturer to an innovation-driven solutions provider. Our investments in advanced materials, circular economy solutions, and cutting-edge applications will redefine manufacturing in India and beyond. The new brand identity, Engineering Better Futures, reflects our core principles: Sustainability, Circularity, Durability and Precision Engineering. These pillars form the foundation of our transformation, ensuring we create a lasting impact for generations to come.”

Ashok Leyland, one of the leading commercial vehicle manufacturers, has inaugurated its new 4,800 buses per annum manufacturing facility near Vijayawada, Andhra Pradesh.

The new facility spread across 75 acres can manufacture the complete range of Ashok Leyland diesel buses along with Switch Mobility’s electric buses. The facility features a Nalanda learning center and an advanced service training center. The plant was inaugurated by Nara Lokesh, Minister of Information Technology, Electronics and Communications and Human Resource Development, Government of Andhra Pradesh.

Furthermore, the auto major as a symbolic gesture also handed over the keys of the Switch electric double-decker bus to the government of Andhra Pradesh as part of its commitment to promoting sustainable public transportation. The event saw participation from M Ram Prasad Reddy, Minister of Transport, Sports, Youth Affairs; T G Bharath, Minister of Industries; V Balashowry, MP, Krishna District; Y Venkata Roy, MLA, Gannavaram Constituency; Ashok P Hinduja, Chairman, Hinduja Group – India and Shom Ashok Hinduja, President Alternative Energy and Sustainability, Hinduja Group, along with dealers, customers, suppliers and other dignitaries.

 “This is a prestigious occasion for Andhra Pradesh. We are delighted to welcome Ashok Leyland to our growing industrial ecosystem. This plant strengthens our reputation as an emerging manufacturing hub and will play a crucial role in providing employment, enhancing skill development, and boosting the overall economy of the State,” said Nara Lokesh.

Dheeraj G Hinduja, Chairman, Ashok Leyland, said, “Inspired by the vision of the Chief Minister Chandrababu Naidu, who has crafted a progressive industrial policy for the State, we are excited to be in Andhra Pradesh and our relationship with this State has been over several decades now through Ashok Leyland and other Hinduja Group entities. The inauguration of the new plant marks the beginning of yet another chapter for Ashok Leyland in this vibrant State, where our Group is committed to explore more opportunities for driving economic growth, creating employment opportunities, and generating prosperity in the region.”

Shenu Agarwal, MD & CEO, Ashok Leyland, added, “With inauguration of the new plant, Ashok Leyland will further consolidate its position as No.1 bus brand in India and among the top 5 globally. This facility will help us cater to the growing demand for fully built buses in India. Production in the new plant has just commenced and owing to our large order book, the plant will start operating at 100 percent capacity from day one. The new plant is equipped with state-of-the art equipment with high levels of automation signifying our commitment to making products of highest quality standards.”