SIAM president Shailesh Chandra warned that the Middle East war could disrupt auto production, raise input costs, fuel prices, and freight rates.
Car sales rose 7.9% to 4.6 million units in FY 2026, up from 2% growth previous year, aided by recent tax cuts.
Domestic two-wheeler sales increased 10.7% in FY 2026, outpacing 9.1% growth the year before, after tax reductions to 18%.
Analysts at Antique Stock Broking say the conflict may curb near-term exports, urging supply-chain calibration and energy-input diversification.