The cost end of the automotive industry supply chain is under pressure, and several multinational car companies are adjusting production schedules.

In recent period, the tense situation in the Strait of Hormuz continues, causing a decrease in regional navigation efficiency, an increase in maritime costs, and a rise in international oil prices. This situation has transmitted from the energy sector to the global automotive industry chain, leading to chain reactions. Focusing on the automotive industry, with crude oil prices remaining high, multiple maritime routes detours have led to extended logistics cycles, increased insurance costs, and exacerbated risks of shortages of parts for car companies. This has impacted the ability of car companies to produce enough vehicles and deliver them on time. As of April 9th, several multinational automakers such as Toyota, Nissan, Tata Motors, Maruti Suzuki, and Hyundai India have postponed shipments of vehicles and parts to the Middle East and North Africa region, with some factories adjusting production pace to address supply chain fluctuations and to avoid surging risks and high additional costs.