India’s auto industry body SIAM flagged concerns over the ongoing conflict in West Asia, warning of potential supply chain disruptions. At the same time, U.S. and India are moving toward finalizing a critical minerals agreement, a development seen as vital for the future of electric vehicles.
The Society of Indian Automobile Manufacturers (SIAM) has highlighted geopolitical risks that could affect India’s auto sector. Rising tensions in West Asia may impact raw material supplies and manufacturing processes. Meanwhile, U.S. Ambassador to India confirmed that both nations are entering a crucial stage in finalizing a critical minerals pact.
Geopolitical Concerns
SIAM noted that the West Asia conflict remains a pressing concern for the industry, particularly for supply chains dependent on imported components and energy. The body emphasized that manufacturers will closely monitor evolving developments to mitigate risks.
Industry Performance In February
Despite global uncertainties, India’s auto sales showed resilience in February 2026.
* Passenger vehicle sales remained steady across domestic markets
* Two-wheeler sales reached 1,871,406 units
* Three-wheeler sales stood at 74,573 units
Critical Minerals Agreement
The U.S. and India are advancing discussions on a critical minerals agreement, which is expected to secure essential resources for electric vehicle production. This pact could strengthen India’s EV ecosystem, reduce dependency on volatile supply chains, and support long-term sustainability goals.
Key Highlights
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* SIAM warns West Asia conflict could disrupt supply chains
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* Auto industry to monitor geopolitical developments closely
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* India’s February two-wheeler sales: 1.87 million units
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* Three-wheeler sales: 74,573 units
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* U.S. and India near finalization of critical minerals pact for EVs
Sources: Reuters, SIAM, Economic Times