Vessel Shortage Disrupts India’s Auto Exports Due To Ongoing West Asia Conflict

India’s auto exports were affected in August because there were not enough ships available to carry vehicles to overseas markets.

Maruti Suzuki and Hyundai Motor India both said their shipments were hit by the shortage. The companies said demand for their vehicles remains strong.

The problem is that the ships needed to move the cars from Indian ports are not available in enough numbers.

“Demand is strong in all our markets. The supply exists. We have cars at the port. It’s the ships that are not available to carry the cars from the Indian port to the export port,” Rahul Bharti, Senior Executive Officer, Corporate Affairs at Maruti Suzuki, said.

Maruti Suzuki exported 33,844 vehicles in August, compared with 36,538 vehicles in August last year.

Bharti said the shortage was mainly due to international shipping liners changing their operations because of the ongoing conflict in West Asia. He said the problem could continue for some time.

“These are mostly international (shipping) liners. The problem may continue for a while. The good part is that we are diversified across 120 markets,” Bharti said.

Maruti Exports Up 14.1%

The shipping problem has not stopped Maruti’s exports from growing overall.

The company exported 188,636 vehicles between April and August, up 14.1% from the same period last year.

Maruti exports vehicles to 120 markets. It has a significant presence in Latin America, where ships have to travel longer distances.

The company is also continuing to export vehicles to Middle East markets despite the conflict in the region.

Bharti said the current problems were part of the ups and downs of global trade and that he expected the company’s exports to remain strong.

“It’s a VUCA world. I believe our exports will be fairly resilient,” he said.

Between April and July, Maruti exported more vehicles than the other 17 Indian manufacturers combined, Bharti said. This gave the company more than 50% of India’s passenger vehicle export market.

Maruti’s Fronx SUV has also crossed 200,000 export units. It reached the mark in less than 38 months, making it the fastest SUV from India to reach that level of exports.

The company’s electric SUV, the e Vitara, has crossed 46,000 exports in its first 12 months. Prime Minister Narendra Modi flagged off the first unit in August 2025. The vehicle is now exported to around 50 countries.

“Momentum continues strong. There are some minor concerns on ship availability, but demand and momentum continues strong,” Bharti said.

Hyundai Also Reports Export Disruption

Hyundai Motor India also said its exports were affected in August.

Tarun Garg, Managing Director and Chief Executive Officer of Hyundai Motor India, said the company faced logistical problems because of the ongoing conflict in West Asia and the wider geopolitical situation.

“While total exports in August were impacted by logistical constraints arising from the ongoing conflict in West Asia and the broader geo-political environment during the month, we remain optimistic that export demand will continue to be strong in the coming months as the geo-political situation improves,” Garg said.

The issue is the availability of ships rather than a fall in overseas demand.

Maruti expects exports to remain strong despite the shortage. It sells vehicles in 120 markets and continues to ship cars to regions such as Latin America and the Middle East.

However, Maruti expects the shortage of ships to continue for some time. Hyundai also expects export demand to stay strong if the geopolitical situation improves.

References: businesstoday, maritimegateway