According to auto.economictimes.indiatimes.com, Hyundai Motor India’s consolidated net profit declined by 35 per cent to ₹888.62 crore for the quarter ended June 2026, as persistent vessel unavailability disrupted global shipments of vehicles and components.
Supply Chain Stress Peaks in Q1 Amid Strait of Hormuz Disruption
The vessel availability crunch emerged in early April 2026 following geopolitical conflict in West Asia, which severely disrupted shipping routes—especially around the Strait of Hormuz. This triggered supply-chain stress across the Indian automotive sector, with the industry body SIAM warning in mid-April that component availability and freight logistics would face their first major test. The disruption affected not only inbound movement of completely knocked-down (CKD) kits into India but also outbound shipments of components to automakers’ global facilities—creating a cascading impact.
The situation peaked during Q1 2026, when some ports reported zero vessel availability. Ashok Leyland’s Ras Al Khaimah (RAK) facility was particularly affected: assembly halted because CKD kits from India could not be shipped. According to Shenu Agarwal, Managing Director and CEO of Ashok Leyland, the situation has since eased—but only to the extent that waiting periods are now predictable: “Earlier there were no vessels at all. Now you have to wait 15 days, you have to wait a month to get a vessel,” he said.
This recalibration has prompted Indian automakers to embed longer shipping timelines directly into production planning, inventory management, and vessel booking—securing capacity weeks in advance rather than reacting to disruptions.
Luxury and Export-Oriented Automakers Face Shared Challenges
Jyoti Malhotra, Managing Director of Volvo Cars India, confirmed the ripple effect extends across geographies: “For us, if we talk about India, we need vessels to bring our kits. They get impacted. If you look at our mother plants, they need components—they are impacted, which indirectly then impacts us. So it’s a vicious circle and it is impacting everyone.” She linked the root cause directly to the ongoing Iran-related conflict, noting vessel availability “has not really resolved itself.”
Similarly, Tarun Garg, MD & CEO of Hyundai Motor India, emphasized that the bottleneck lies not in pricing or production capacity but in physical vessel access: “The issue is not production, nor is it about shipping prices. The real challenge is the availability of vessels. There simply aren’t enough vessels available to move the vehicles as required.” Hyundai India, one of India’s leading exporters, registered its 35 per cent net profit decline against this backdrop.
Despite the pressure, Garg expressed confidence in Hyundai’s ability to navigate the crisis, citing its established ecosystem and supply-chain network. He expects the situation to ease “in the coming time.” As of Sep 11, 2026, Ashok Leyland reported it had ramped up production at RAK “to a large extent” as logistics conditions improved.
Source: auto.economictimes.indiatimes.com
Compiled from international media by the SCI.AI editorial team.
