Red Sea crisis: Supply chain badly affected, car prices increasing

Red Sea crisis: Supply chain badly affected, car prices increasing


New Delhi: The supply chain in India’s auto industry has been badly affected due to the capture of cargo ships by drone attacks by Iran-backed Houthi terrorists in November last year. There is a problem in the parts imported from other countries for the production of vehicles reaching India, due to which the manufacturing cost of vehicles has increased and the prices of cars are continuously increasing. The biggest thing is that due to this crisis, problems are also being faced in the manufacturing of electric vehicles.

Problem arises in supply chain

German luxury car manufacturer Audi has said that the Red Sea crisis is causing supply chain problems for it. A senior company official said that due to the Red Sea crisis, there is a delay in the delivery of cars to customers in India in the first quarter.

Production of electric cars affected

During a conversation with the media, Audi India chief Balbir Singh Dhillon said that it is expected to take several months to improve the supply chain problems caused by the Red Sea crisis. He said that the company is evaluating the possibilities of manufacturing electric cars in India. He said that we also face challenges from time to time due to various reasons. Recently, there has been a disruption in the supply chain due to the Red Sea crisis, which we are facing in the first quarter of 2024.

Houthi terrorists attacked the container in the Red Sea

Balbir Singh Dhillon said that due to the Red Sea crisis, car companies are delaying the delivery of cars to customers. He said that car delivery was delayed by several weeks. He said container ships in the Red Sea, one of the world’s most important trade routes, have been facing attacks since November last year following Israel’s war against Hamas. He said that Houthi terrorists had attacked the container in the Red Sea.

Audi India will launch many new cars in India

When asked about the popularity of electric vehicles in India, he said that it is still in its initial stage. To adopt electric vehicles in India, we have to be prepared for the long haul. He said that in future Audi is going to introduce many new cars in the global market. He said that some of these cars will also be launched in the Indian market.



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