Natural gas crisis: Indian auto industry on brink of collapse
India's car industry is in a tough spot after the government cut industrial gas supplies to 80% of normal, starting in March 2026.
The move is meant to prioritize homes and public transport, but smaller auto suppliers are already running low on gas for key processes, while big brands like Tata Motors are feeling only minor impacts so far.
Industry groups urge government to take action
If this shortage continues, it could mean pricier cars, fewer jobs, and even production halts, bad news for an industry that supports 1.5 million livelihoods and makes up over 2% of India's GDP.
Costs could increase by roughly 15-25% if manufacturers switch from piped natural gas to more expensive alternatives, and the Nifty Auto index just saw its worst week in six years.
Industry groups are urging the government to act fast before things get worse for everyone involved.