The effect of increasing tension between Iran-Israel-America is now directly visible on India’s automobile sector. The rise in crude oil prices, increase in shipping costs and pressure on the supply chain have increased the costs of companies. The first and biggest impact of the war has been on the raw materials for making vehicles. The price of every part of the vehicle like steel, aluminium, rubber, plastic, paint and chemical is increasing.

The world’s oil benchmark Brent crude has reached close to $110 to $120 per barrel. The price of paints and chemicals made from petrochemicals increases first and fastest because they are directly linked to crude. Understand it like this that now every part of the vehicle is becoming expensive and this inflation is reaching the companies.

Pressure on companies to increase prices or reduce margins?

Brokerage firm Elara Securities has said in the report that the Indian auto sector is under pressure from two sides. On one hand, there is the direct loss of stoppage of exports to the Middle East and on the other hand, there is the pressure of expensive raw materials, increased freight rates and broken supply chain. It is also affecting those companies which have less direct business with the Middle East.

• Tata Motors has increased the prices of petrol-diesel-CNG vehicles by an average of 0.5% from April 1, 2026 and up to 1.5% on commercial vehicles.
• JSW MG Motor has increased prices by 2% across the entire range.
• BMW and Mercedes-Benz have also increased by 2%.
• Kia India has also indicated cost increase.

Maruti Suzuki and Mahindra & Mahindra are not increasing the prices at present, but both the companies have clearly said that if the situation continues for a long time then increasing the prices will become a compulsion.

If fuel becomes expensive then demand for EV increases

The fear and uncertainty regarding the prices of petrol and diesel due to the war has started a new trend in the market. People are buying EV considering it as a safe option, because EV running cost is low, there is no risk of fuel price and there is government support too. EV sales across the country increased by more than 25% in February 2026. Mahindra’s EV sales almost doubled.

Overall EV retail sales increased by 44%. This was India’s highest monthly EV retail record till date. Tata Motors and Mahindra are getting the most benefit from this entire change.

Shipping and supply chain is a big hidden danger!

After the near-closure of the Strait of Hormuz, the world’s largest shipping companies have abandoned that route. Due to this, freight has increased, delivery has been delayed and import of parts has become expensive.

According to Elara Securities, for most Indian auto companies, freight cost is 1% to 3% of total revenue. This figure seems small, but in a sector like auto where margins are already very thin, it directly hurts profits. Its impact is not only on big car companies but on the entire auto component sector.

Tire and chemical sectors were hit the hardest

Among tire companies, the auto auxiliary sector is under the most pressure. Raw materials related to rubber and crude are becoming increasingly expensive, but tire companies cannot increase their prices immediately, because their big customers are OEM companies themselves.

The result is that the maximum squeezing of margins is taking place here. Nifty Auto fell 2.6% as news of natural gas shortage in March 2026 arrived. Shares of Bharat Forge, TVS Motor and Tata Motors fell more than 3%.

What next? Now the whole game will depend on war

Constraints in oil and gas supply and rising interest rates can affect the earnings of the auto sector. Experts say that if the war continues for 3 to 6 more months, the situation will become more difficult. The prices of vehicles will increase further, the profits of companies will decrease and the trend towards EV will increase further.

The auto sector is still under pressure. Costs are rising and demand is uncertain. Companies are avoiding increasing prices as much as possible, but the market is slowly changing from petrol-diesel vehicles to EVs. This change will gain momentum the longer the war continues.

The demand for 7-seater SUV is continuously increasing in India. Hyundai and Kia are preparing to launch new 7-seater hybrid SUVs in India in the coming time. According to reports, these vehicles can come to the Indian market between 2026 and 2027. After launch, it can give tough competition to Mahindra XUV 7XO, Tata Safari and many new upcoming 7-seater SUVs.

Hybrid SUV based on Kia Sorento

Kia India is preparing to launch its first hybrid SUV in India. The code name of this project is being told as MQ4i. This SUV can be based on Kia Sorento sold in the global market. This SUV was seen during testing in India last year. Thin LED DRL strips, vertical LED headlights and large 19-inch alloy wheels can be seen in its design. Apart from this, flush type door handles, silver roof rails and wraparound LED taillights can also be provided in the car.

Radar sensors for ADAS were not visible in the model seen during testing, but it did have a front camera and front parking sensors. It is expected that many modern safety features can be provided in it at the time of launch. Kia Sorento comes with three engine options in the global market. These include 1.6 liter turbo petrol hybrid engine, 2.2 liter diesel engine and 1.6 liter turbo petrol plug-in hybrid engine. However, the model to be launched in India is likely to get a 1.5 liter naturally aspirated petrol hybrid engine.

Hyundai’s new 7-seater hybrid SUV Ni1i

Hyundai is also preparing a new 7-seater hybrid SUV for India. The code name of this project is being told as Ni1i. This SUV can be placed in the category between the company’s Alcazar and Tucson. According to media reports, this SUV may be inspired by the Tucson LWB sold in China. Its length can be approximately 4630 mm, width 1865 mm and height 1665 mm. Due to this size, it can prove to be a very large and comfortable 7-seater SUV. Talking about the engine, Tucson comes with 1.6 liter petrol hybrid engine in the global market. But in the model coming to India, the company can offer hybrid system with 1.5 liter naturally aspirated petrol engine.

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This year in India, on Diwali 2025, almost all the big automobile companies like Tata Motors Hyundai to Kia have brought car offers. If you are thinking of buying a new car, then this time can prove to be the best for you, because this time companies are giving the opportunity of savings ranging from Rs 5,000 to Rs 7 lakh. These offers include benefits like cash discount, exchange bonus, corporate discount, loyalty bonus and scrappage benefits. Let us know in detail.

Tata Motors offers

• Tata Motors has announced several offers on its most popular cars for Diwali 2025. Cash discount and exchange bonus are available on both petrol and diesel cars of the company. Benefits ranging from Rs 5,000 to Rs 50,000 are being given on cars like Tiago, Tigor, Punch, Nexon, Curvv, Harrier and Safari. This time no offer has been implemented on the new Altroz ​​Facelift. This scheme gives customers a better opportunity to buy a new car by exchanging their old vehicle.

Kia Motors offers

• Kia Motors has also introduced many great offers for its customers in this festive season. This time huge discounts are being given on Sonet, Seltos, Carens Clavis and Carnival. Overall savings can be up to Rs 65,000 on some models. Along with cash discount, the company is also offering corporate discount and loyalty bonus.

Hyundai Diwali Offers 2025

• Hyundai has announced discounts on almost every model this Diwali. Be it the affordable Grand i10 Nios or the luxury Ioniq 5 – there is something to offer in every range. Exchange and cash discounts are being given on Hyundai’s Creta, Verna, Venue and Alcazar. At the same time, in the electric segment, a huge savings of up to Rs 7 lakh is being offered on Ioniq 5. Apart from this, Hyundai has also introduced scrappage benefit on cars older than 15 years.

Honda Cars offers

• Honda Cars India has also announced tremendous Diwali offers for the customers. This time benefits of up to Rs 1.32 lakh are being given on the company’s Amaze, City and Elevate. These offers include cash discount, exchange bonus, loyalty benefits, corporate offers and extended warranty discount. Especially the offers given for Honda City and Elevate are considered to be the best this season.

Why is this the right time to buy a car?

Let us tell you that the festive season is always special for the automobile sector, because during this time companies offer the biggest offers to increase their sales. This year too, Diwali Car Offers 2025 are giving great savings to the customers. If you are planning to buy a new car, then October 2025 is the best time for you.

Also read: Land Rover launches Defender 110 in India in a new style, know the features and price

Midsize SUV has become the highest demand segment in the Indian auto market. After the success of vehicles like Hyundai Creta and Maruti Grand Vitara, many companies are now preparing to introduce new models. Kia, Renault, Nissan and Tata Motors will launch their new SUVs in the coming months. The special thing is that many of these models will come with advanced features like hybrid engines and Adas. Let’s take a look at the features of these cars.

Kia seltos hybrid

• Kia Celtose is already a hit model in India and now the company is going to launch its new hybrid version. The SUV, launched in early 2026, will get a hybrid engine, which will be able to give a mileage of about 30 kmpl. Talking about the features, it will include premium features like ventilated seats, panoramic sunroof, 360 degree camera and Adas. The new design will be given updated front face, vertical DRLs and new grille, which will make it look more stylish than before. It can compete directly with Hyundai Creta and Maruti Grand Vitara.

New renault duster

• The Renault Duster has always been an iconic name in the Indian market and is now going to return with 3rd Gen. The new Duster, launched in early 2026, can be given a 1.3-liter turbo petrol engine, which will generate 154 Bhp of power and 250 Nm of torque. This SUV will be based on CMF-B platform and later hybrid variants are also expected to come. Its design will be like a global model, but some special changes will be made keeping Indian customers in mind. It will compete directly in the market with SUVs like Hyundai Creta and Kia Seltos.

Renault Boreal

• Along with the Renault Duster, the company is also preparing to launch a new premium 7-seater SUV, which can be called Renault Boreal. The SUV, which is launched in the second half of 2025, will come with petrol engine and it can also get the option of hybrid variants. Its design will be inspired by the duster, but it will be made special for families with more space and premium features. It will compete with SUVs like Maruti Grand Vitara and Toyota Hyryder.

Nissan Creta-Rival SUV

• Nissan is also preparing for its entry in the Indian Midsize SUV segment. This new SUV will be built on the CMF-B+ platform of the Renault Duster and will be launched in 2026. The company will give modern technology and advanced powertrain in it, although the complete information about its features has not been revealed yet. Along with the launch, it will compete with Bestseling SUVs like Hyundai Creta and Kia Seltos. Nissan can also introduce a compact MPV before the SUV launch.

Tata Sierra

• Tata Sierra, one of the most popular SUVs of the 90s, is now making a comeback in a new avatar. The company will launch it by the end of 2025, in which the first electric variants and later petrol-diesel versions will be brought. The Tata Sierra Ev is built on acti.ev+ architecture and will share many components with Harrier EV. It will be given a 1.5-liter turbo petrol engine, which will generate 168 bhp power and torque of 280 Nm, while the 2.0-liter turbo diesel engine option can also come. The features will include split headlamps, Adas sensors and gloss black grille, which will give it even more futuristic and premium looks. If you are thinking of buying SUV in the coming time, then these cars can be better options for you.

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