A Strait of Hormuz blockage threatens India’s auto industry with DEF shortages, risking vehicle shutdowns and supply chain chaos by April 2026.

A disruption in the Strait of Hormuz is threatening India's automotive sector with shortages of technical grade urea (TGU), a key component in diesel exhaust fluid (DEF), due to India's reliance on imports from Egypt and Dubai. A supply blockage could halt BSVI-compliant heavy-duty vehicles, which shut down without DEF, risking widespread fleet immobilization and supply chain disruptions. The Society of Indian Automobile Manufacturers warns of uncertain urea availability beyond early April 2026. Rising crude oil prices are also increasing costs for tyre manufacturers, while gas-dependent auto component makers face production risks from potential energy shortages. Prolonged disruptions could severely impact the automotive supply chain and broader economy.