ArdorComm Media News Network
March 19, 2026
India’s auto component industry is facing a potential workforce challenge as shortages of LPG cylinders begin to push workers to return to their native places, according to the Automotive Component Manufacturers Association of India.
The industry body warned that while the current situation is not as severe as the disruptions seen during the COVID-19 pandemic, it could worsen if fuel supply issues persist. ACMA Director General Vinnie Mehta noted that many workers had shifted to LPG-based cooking after restrictions on wood usage due to air pollution concerns. However, the ongoing shortage is now making it difficult for them to manage daily cooking needs.
The situation is further compounded by the shutdown of several factory canteens, leaving workers with limited alternatives and prompting some to migrate back home. This trend could disrupt manufacturing operations if it intensifies.
ACMA, which represents over 1,000 manufacturers and accounts for more than 90% of the organised auto component sector’s turnover, highlighted the broader economic implications. In FY25, the industry recorded a turnover of USD 80.2 billion, including exports worth USD 22.9 billion and a trade surplus of USD 500 million.
The shortage is partly attributed to supply disruptions linked to the US-Israeli war on Iran, prompting the government to prioritise domestic LPG consumption. In response, the Ministry of Petroleum and Natural Gas has set up a panel to review industry concerns.
The auto component sector has urged the government to ensure uninterrupted supply of LPG or piped natural gas (PNG) for MSME units, particularly in foundry and forging segments, or to provide a transition window for alternative fuels. Industry leaders emphasised that continued support is critical to maintaining production levels, sustaining exports, and preserving India’s position in global automotive supply chains.
Source: PTI