India's auto industry body on Tuesday flagged concerns on the possible adverse impact ​of the Middle East ⁠war on automotive production, input and fuel prices, and ‌freight rates.

Here are some key details:

The West Asia conflict is ​expected to pose short-term challenges for the auto industry, Shailesh Chandra, president ​of Society of ​Indian Automobile Manufacturers (SIAM), said.

Uncertainties arising from the West Asia conflict, particularly prices of crude oil and ⁠commodities, higher exchange rates and disruptions in shipping routes, remain a concern for the auto sector, the industry body said.

In the near term, the conflict may weigh on export volumes, ​and the ‌evolving situation ⁠reinforces the need ⁠for calibrated supply chains and diversification of energy inputs, analysts at Antique Stock ​Broking said.

In the entry-level segment ‌in April so far, buyer enquiries are ⁠strong, but converting them to sales is taking longer, the SIAM president said.

Car sales by manufacturers to dealers in the world's third-largest car market rose 7.9% to 4.6 million units in the financial year 2026, industry data showed, compared to the previous fiscal year's 2%, as consumer sentiment improved due to tax cuts.

In September 2025, India ‌slashed taxes on larger SUVs to 40% as an ⁠additional levy was dropped and on ​small cars and two-wheelers to 18% from 28%, helping support demand across segments.

Total domestic two-wheeler sales in the financial year 2026 ​rose 10.7% ‌on-year compared to 9.1% growth last year, ⁠the industry data showed.

(Reporting by ​Aditi Shah and Anuran Sadhu; Editing by Harikrishnan Nair)