West Asia conflict may hit auto sector via supply chains: Volvo Group India President

Volvo Group India President and Managing Director Kamal Bali

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The ongoing conflict involving Israel, the US and Iran has not directly impacted the Indian automotive industry so far, but any supply chain disruption could pose risks for the sector, Volvo Group India President and Managing Director Kamal Bali said on Friday.
Speaking to PTI on the sidelines of a CII conference, Bali said the impact of the conflict may not be immediately visible and could emerge with a time delay if global supply chains become constrained.“There is no direct impact on anyone right now. You can’t say how is it directly impacting. The impact will be with a little bit of time delay. If the supply chain becomes constricted then it is a problem for Volvo and the rest of the automotive industry,” Bali said.He added that if the conflict ends soon, the damage could remain limited and India would be able to withstand the impact.“Hopefully if the war ends now, the damage will be limited and we can dive through that. I think India as a country has the resilience to bear this much. I hope it doesn’t go much longer. If it stops now, I think we are good,” he said.

Bali also said the conflict should end for broader humanitarian reasons.

Volvo’s performance
Commenting on the company’s performance, Bali said Volvo Group India — which operates across trucks, buses, construction equipment, Volvo Penta and financial services — is doing well in the domestic market. He noted that Volvo currently holds the third position in its category, which includes a joint venture with Eicher Motors.

He reiterated Volvo’s commitment to phase out fossil fuels and achieve net zero emissions by 2040. Bali said the company is working on multiple technology pathways including battery electric vehicles, hydrogen fuel cells and other alternative solutions.

On its India growth plans, Bali said Volvo continues to evaluate opportunities across regions. He noted that Andhra Pradesh remains a strong market for Volvo, especially in mining-related applications, though there are no specific expansion plans for the state at present.

“We constantly keep looking at whole of India, various geographies, wherever we can make further inroads, wherever we think we can do more we will continue,” he said.