The storm arising from the ‘Red Sea’ is shaking the auto sector, know what will be the outcome now
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New Delhi: The storm that arose in November last year from the Red Sea separating the continents of Asia and Africa has shaken India’s auto sector. Iran-backed Yemen Houthi terrorists attacked cargo ships with drones in November last year. These Houthi terrorists had captured the cargo ships owned by Britain and operated from Japan, due to which the problem of parts imported from other countries for the production of vehicles was created in reaching India. A lot of goods were destroyed in the attack. The result of this is now visible and Indian vehicle manufacturing companies are increasing the prices of vehicles citing increase in costs. However, these companies have increased the prices of vehicles by one to two percent in January 2024. But, apprehension is also being expressed that before March, the last month of the current financial year 2023-24, these companies may once again increase the prices of vehicles.
Auto companies are facing logistics challenges
According to a report by news agency Reuters, Maruti’s Investment Relations Chief Rahul Bharti has indicated that the auto sector is facing logistics challenges after the attack and capture of cargo ships by Iran-backed Yemen’s Houthi terrorists in the Red Sea. Is. Because of this, companies may once again increase the prices of passenger vehicles in the coming months.
Companies apprehensive about increase in production costs
It has been told in the agency’s report that after this attack by Houthi terrorists, Indian vehicle manufacturing companies are apprehensive about the increase in production costs, the effect of which can also be seen on the prices of passenger vehicles. However, Maruti’s Rahul Bharti did not say whether Maruti Suzuki would increase the prices of its passenger cars or not. He said that it may not be important to increase the prices of cars because of the Red Sea crisis. However, he said that due to this the waiting period of cars may definitely increase.
Houthi terrorists attacked in November 2023
According to media reports, in November 2023, Iran-backed Houthi terrorists from Yemen attacked cargo ships owned by Britain and operated from Japan in the Red Sea. Additionally, they seized an international cargo ship in the Red Sea. At that time Israel had shared this information with the whole world including India. Israel had said that the cargo ship seized by Houthi terrorists was going to India. Tel Aviv termed it a terrorist incident and accused Iran of capturing the cargo ship. He had said that this is a very serious incident at the global level.
Terrorists took steps at the behest of Iran
Prime Minister Benjamin Netanyahu’s office said that the British-owned and operated cargo ship from Japan had been captured by Houthi terrorists, an ally of Iran. In a statement issued by Netanyahu’s office, it was said that this is a terrorist act by Iran, which affects the security of global shipping routes. This shows the actions taken by Iran against the people of the free world.
India worried about attack by Houthi terrorists
Prime Minister Narendra Modi expressed concern after the drone attack on cargo ships by Houthi rebels in November 2023. The Indian Foreign Ministry had said that India’s interest is linked to this region and the government is very concerned about such attacks. Apart from this, India has always been in touch with America and European countries as well as its friendly countries of the Gulf region like Saudi Arabia, UAE and African continent countries Ethiopia and Egypt to resolve this issue.
The Red Sea separates Asia from Africa
In fact, the Red Sea is an important international trade waterway, through which cargo ships from many countries of Asia including India reach India carrying goods from western countries including America and Britain. The Red Sea separates Asia from the African continent. It falls between the Indian Ocean, Asia and Africa. It connects to the Mediterranean Sea of Europe through the Suez Canal. Egypt, Saudi Arabia, Yemen, Sudan, Eritrea and Djibouti share their borders with this Red Sea. The average depth of this 2250 kilometer long sea expanse is 490 meters and the distance between its shores at the widest point is 355 kilometers. Yemen’s Houthi terrorists are very active in this Red Sea and attack cargo ships and capture them. Due to this, there is an increase in the cost of production of goods in India and other Asian countries.
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