Diesel transport faces risk if urea supply disrupted: Auto industry

• TNN

• Published On Mar 15, 2026 at 02:42 PM IST

The automobile industry has warned the govt over possible disruptions in diesel vehicle operations and supply chains due to uncertainties in the availability of Technical Grade Urea (TGU), a key input used to produce Diesel Exhaust Fluid (DEF) due to the ongoing West Asia conflict.

In a letter to the govt, the Society of Indian Automobile Manufacturers (SIAM) warned that disruptions in imports of TGU due to shipping issues in the Middle East could impact the supply of DEF, which is mandatory for Bharat Stage VI diesel vehicles to reduce emissions. The industry body said there is “no clear visibility of TGU supplies beyond early April 2026” as shipping routes and port operations in the region face disruptions.

The letter further stated that India currently imports around 50 -60 per cent of its TGU requirement through hubs such as Dubai and Egypt and any disruption in DEF availability could have a wider impact on the transport ecosystem of India.

“All BS-VI commercial vehicles and large diesel passenger vehicles are equipped with a mandatory engine interlock mechanism under which the vehicle cannot operate if DEF levels are exhausted,” SIAM said, adding that shortages could immobilise a large part of the country’s commercial transportation fleet and disrupt logistics and supply chains.

The industry asked the govt to direct Gujarat Narmada Valley Fertilisers & Chemicals Ltd (GNFC), the country’s only domestic producer of TGU, to maximise output and prioritise supplies for DEF manufacturing until imports normalise. GNFC currently produces 15,000 to 20,000 tonnes of TGU per month, meeting only about 50 per cent of the national requirement, with the rest met through imports.Apart from TGU, SIAM and the Automotive Component Manufacturers Association (ACMA) sought assurance on the continued supply of LPG, pipped natural gas and propane used in several automobile manufacturing processes such as castings, forgings and paint shops, warning that any restrictions could disrupt production and affect the wider auto supply chain.ACMA said that exporters were facing rising logistics costs and delays in shipments due to vessel rerouting, container shortages and higher insurance premiums, with export lead times increasing by 2 to 4 weeks.

Rajesh Menon, Director General of SIAM, said the geopolitical situation remains a concern for the auto sector. “While the month of March has festive drivers in several parts of the country. The recent conflict in West Asia remains a concern, both from the perspective of the supply chain, which could impact manufacturing processes and exports. Industry would keep a close watch on evolving geopolitical developments,” he said.

Industry executives also told TOI about emerging shipping disruptions. Ishwar Kumhar, Co-Founder and CEO of Original Equipment Manufacturing start-up Brandworks Technologies, said global shipping routes saw modifications due to the crisis, leading to occasional delays and fluctuations in freight rates.