MHI urges auto industry to shift from oil-based fuels to natural gases amid West Asia turmoil

These alternative energy sources are comparatively more available than LPG, as the latter is prioritised for domestic households over industrial and commercial users as of March 2026.

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The Ministry of Heavy Industries (MHI) has urged the automobile industry to move away from oil-based fuels and adopt alternative energy sources, including gases such as piped natural gas (PNG) and compressed natural gas (CNG) in the industrial production process which will help in minimising the rising supply risks linked to the ongoing energy crisis triggered by West Asia tensions.The ministry has reportedly requested industry bodies, including the Automotive Component Manufacturers Association of India (ACMA) and the Society of Indian Automobile Manufacturers (SIAM), to explore greener and more readily available fuel options to reduce dependence on conventional fuels.“This will help ensure a cleaner process, especially at a time when the industry is facing disruptions due to the ongoing West Asia crisis,” Hanif Qureshi, Additional Secretary, Ministry of Heavy Industries, told ETAuto.These alternative energy sources are comparatively more available than LPG, as the latter is prioritised for domestic households over industrial and commercial users as of March 2026, according to the Ministry of Petroleum and Natural Gas notification a few days back.

According to Vinnie Mehta, Director General, ACMA, several auto component companies have already begun moving away from LPG to natural gases and diesel due to supply chain disruptions and limited availability.

According to media reports, the ministry has also requested to shift auto industry’s operations to electricity and to use recycled aluminium or alternative materials due to limited availability of materials and rising costs.

The move is expected not only to provide relief during the current crisis but also to support the government’s larger objective of reducing fossil fuel consumption and accelerating India’s transition towards electric mobility. The government has rolled out multiple schemes such as PM E-DRIVE, PLI Scheme, among others, to promote transition towards clean mobility .

As ETAuto earlier reported, prolonged conflict in the region could lead to production disruptions and export challenges for the auto industry. “As of now, we have not heard anything from OEMs regarding production halt, however, if it continues in April and after that it will create pressure,” Qureshi added.