Auto dealers flag dispatch delay as war hits parts supply

NEW DELHI: The West Asia conflict has led to component supply disruptions for auto dealers. Over 50% of them have reported dispatch delays and logistical challenges, revealed a survey by the Federation of Automobile Dealers Associations (FADA).

Total retail sales of vehicles have touched a record of about 3 crore units in 2025-26, showing a growth of 13.3% compared to previous fiscal. However, the survey found that over half of the dealers saw disruptions in component supply or delay in dispatches, with 17% of them reporting dispatch delays of three weeks or more.

The commercial vehicle segment has been most impacted, while car and twowheeler dealers flagged delays in making specific variants, due to component supply disruptions.

FADA further stated that fuel prices are emerging as a concern. More than a third of the dealers said rising fuel prices are affecting customer purchase decisions, lengthening buying cycles and pushing buyers towards CNG and electric vehicles.

Ravi Bhatia, president at automotive intelligence firm JATO Dynamics India, said carmakers have increased prices due to the West Asia conflict. “Manufacturers have begun selective price increases to offset rising raw material costs, logistics pressures and rupee depreciation,” adding that prolonged supply chain disruptions from the conflict could affect production, while moderating industry growth.

Looking ahead, dealer confidence for FY27 remained positive, with more than twothirds of the dealers expecting retail sales growth in the 3-7% range. However, they flagged three major risks, including economic slowdown and weak consumer sentiment, OEM supply disruptions and rise in fuel prices.
Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.