War Fallout Reaches Auto Sector, Thousands of Cars Delayed in Transit

The ongoing conflict in the Middle East is beginning to impact the global automobile industry, with thousands of vehicles now stuck in transit due to rising security risks along major shipping routes.

According to international reports, more than 2,000 cars exported from India to West Asian countries have been delayed after shipping routes through the Red Sea and the Strait of Hormuz became increasingly unsafe.

The vehicles, shipped by Hyundai Motor India, were initially sent from Chennai Port and routed through Sri Lanka’s Hambantota Port before heading toward Gulf markets. However, due to escalating tensions and security concerns in the region, the ships were unable to continue their journey and the vehicles had to be brought back to Chennai.

The disruption comes after Iran reportedly shut access to the Strait of Hormuz, one of the world’s most important maritime trade routes, and warned ships against entering the area.

The conflict is also affecting wider cargo movement. Port sources say around 4,000 containers linked to Gulf-bound shipments have been forced to return or reroute, including about 1,800 containers that departed from Chennai.

Shipping companies are now reconsidering their routes and cargo schedules due to the growing risks in the region. Global shipping giant Maersk has temporarily paused new cargo bookings to and from Gulf countries, prioritizing only essential goods such as food and medicines.

Several ports in India’s Tamil Nadu region are already experiencing reduced shipping activity. The V.O. Chidambaranar Port in Thoothukudi is among the worst affected, with containers carrying textiles, food products, and other goods currently stranded at nearby storage facilities.

Despite the global disruption, Nepal’s automobile imports are expected to remain largely unaffected. Most vehicles imported into Nepal come from India and China, mainly through land routes, which are not impacted by the maritime tensions.

However, a small number of vehicles imported from countries such as Japan, Thailand, the United States, and Europe could face delays if the situation continues. These imports account for less than five percent of Nepal’s total vehicle supply.