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The ongoing Iran–United States conflict is now rippling far beyond battle zones, hitting India’s manufacturing backbone and potentially making cars significantly more expensive. From disrupted gas supplies via the Strait of Hormuz to rising costs of critical raw materials like steel, aluminium, and copper, the auto industry is facing a serious supply chain crunch. With India importing nearly half of its natural gas—largely from Qatar—any disruption has a direct impact on production processes like forging, casting, and painting, which rely heavily on gas. Despite strong demand and record sales growth, companies like Tata Motors and Mahindra & Mahindra are reportedly scaling down capacity, while suppliers struggle with shortages and uncertainty. As inventory levels drop and waiting periods for popular models stretch further, the pressure is mounting—and automakers may soon pass on rising costs to consumers. In today’s Kharcha Paani, we break down how global conflict is quietly driving up your everyday expenses, including the price of your next car.
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Production: Shruti Agarwal
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