India's auto industry is asked to optimize production due to the Iran war affecting energy supplies

A government memo obtained by shows that India has asked automakers to reduce production to save fuel amid fears of shortages due to disruptions in oil and gas imports from the Gulf because of the war with Iran.

According to a?March 25, 2018 advisory, the heavy industries ministry also encouraged companies to switch from oil-based fuels into electricity. They were also encouraged to use alternative materials such as recycled aluminum or other alternatives to reduce costs and shortages.

The advisory highlights the growing concern of India, as one of the largest oil and gas importers in the world, over the conflict, its disruption of?energy flow, supply chains, and the availability of raw materials.

The Indian Ministry of Heavy Industries did not respond immediately to a comment request.

The government has prioritized the use of?gas for households, as opposed to?industries which only get 80% of average needs.

Some of the leading Indian carmakers, such as Maruti Suzuki and Tata Motors, are reporting that they are running out of gas at a time when sales are booming.

The Ministry wants the sector to do more.

Wherever it is technically possible, the switch from oil-based fuels may be considered. In addition, the ministry noted that production schedules could be optimized to minimize idle and standby fuel use.

The government is encouraging companies to explore alternative materials and packaging for non-critical uses, such as beer bottles and other noncritical applications. This will reduce the "demand pressure", which has already affected beer makers.

An executive from an Indian automaker said, "I don't think we can do much to?change the factory.?But the conclusion is that the?war will continue for a very long time. We should be ready." (Reporting and Editing by Aditi Sha, William Maclean).

(source: Reuters)