{"id":113054,"date":"2026-03-06T11:27:10","date_gmt":"2026-03-06T14:27:10","guid":{"rendered":"https:\/\/automotive.einnews.com\/article\/897632983"},"modified":"2026-03-06T11:27:10","modified_gmt":"2026-03-06T14:27:10","slug":"indian-automakers-delay-mideast-shipments-as-iran-war-snarls-exports","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/03\/06\/indian-automakers-delay-mideast-shipments-as-iran-war-snarls-exports\/","title":{"rendered":"Indian automakers delay Mideast shipments as Iran war snarls exports"},"content":{"rendered":"

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<img width="590" height="442" class="unveil" loading="eager" src="https:\/\/auto.economictimes.indiatimes.com\/images\/default.jpg" data-src="https:\/\/etimg.etb2bimg.com\/photo\/129128332.cms" captionrendered="1" alt="<\/p>\n

Companies including Tata Motors, Maruti Suzuki, Hyundai Motor India, and Volkswagen are postponing dispatches to avoid emergency shipping surcharges and higher war-risk insurance premiums.<\/p>\n

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Companies including Tata Motors, Maruti Suzuki, Hyundai Motor India, and Volkswagen are postponing dispatches to avoid emergency shipping surcharges and higher war-risk insurance premiums.<\/span><\/figcaption><\/figure>\n

A clutch of Indian automakers<\/a> is delaying shipments to the Middle East and North Africa, people familiar with the matter said, as escalating regional tensions upend sea routes and drive up freight costs.<\/p>\n

With the US and Israel\u2019s war on Iran entering the sixth day, companies including Tata Motors<\/a> Ltd., Maruti Suzuki India Ltd<\/a>., Hyundai Motor India<\/a> Ltd., and the local unit of Volkswagen AG are deferring dispatches of cars and commercial vehicles, the people said, asking not to be identified as the information is not public. The intent is to avoid emergency shipping surcharges of as much as $2,000 per container and war-risk insurance premiums as container availability becomes strained, they added.<\/p>\n

The Strait of Hormuz a narrow waterway at the mouth of the Persian Gulf and a vital artery for global trade \u2014 has effectively become impassable after Iran warned this week that any vessel attempting passage risks being attacked. Rerouting around South Africa would sharply inflate shipping costs for automakers, prompting them to stall cargo bound for the region.<\/p>\n

These automakers can typically hold out on overseas shipments for two to three weeks before storage constraints and working-capital pressures begin to bite, the people said. Any prolonged halt will hurt their sales too as the region is a crucial export market for Indian automakers<\/a>.<\/p>\n

Two-wheeler maker Bajaj Auto Ltd<\/a>. has stopped its shipments to the Gulf countries which contribute 3 per cent to its exports, one person said. Its shipments to parts of Africa are also affected due to container unavailability and difficulties in berthing ships, the person added.<\/p>\n

Representatives for Hyundai India, Maruti Suzuki India<\/a>, Tata Motors<\/a> and Bajaj Auto<\/a> did not immediately respond to emailed requests for comment. A spokesperson for the Volkswagen Group said it\u2019s continuously assessing the situation and possible impact on the company but did not address whether its exports were affected.<\/p>\n

Middle East and North Africa, or MENA, represents between 8 per cent and 40 per cent of total export volumes for key original equipment manufacturers, implying a hit if shipments are delayed or canceled, according to Jay Kale, executive vice president at Elara Capital India Pvt.<\/p>\n

Maruti Suzuki<\/a> said in a media call March 1 that the Middle East accounted for about 12.5 per cent of its exports in the year ended March 31. For Hyundai Motor India<\/a>, MENA makes up about 40 per cent of the overseas shipments, Kale said.<\/p>\n

The big risk lies in how this will spike costs and squeeze margins, especially with no visibility of how long the war will stretch.<\/p>\n

Freight expenses, which typically account for 1 per cent to 3 per cent of revenue for most automakers, are also expected to climb amid vessel rerouting and higher insurance premiums, according to Kale. Tyre makers are particularly exposed to higher crude oil prices given their reliance<\/a> on petro-linked inputs.<\/p>\n

Those worries rippled through Indian equity markets this week that prolonged disruptions could dent export volumes and profitability. The NSE Nifty Auto Index has declined about 3.9 per cent since the conflict started over the weekend.<\/p>\n

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