The Ministry of Heavy Industries (MHI) has urged the automobile industry to gradually move away from oil-based fuels and adopt alternative energy sources such as piped natural gas (PNG) and compressed natural gas (CNG) for industrial operations. The advisory comes as rising geopolitical tensions in West Asia raise concerns about fuel supply disruptions and increasing energy costs.
According to reports, the ministry has reached out to industry bodies including the Automotive Component Manufacturers Association of India (ACMA) and the Society of Indian Automobile Manufacturers (SIAM), encouraging them to explore cleaner and more readily available fuel options. The move is aimed at reducing dependence on conventional fuels while ensuring production continuity during the ongoing energy uncertainty.
Hanif Qureshi said that the shift to alternative fuels would support cleaner manufacturing processes and help the industry manage supply disruptions linked to the West Asia crisis. He noted that fuels such as PNG and CNG are currently more accessible than LPG, which has been prioritised for domestic households over industrial and commercial users following a recent notification from the Ministry of Petroleum and Natural Gas in March 2026.
Vinnie Mehta, Director General of ACMA, stated that several auto component manufacturers have already begun transitioning away from LPG to natural gas and diesel due to limited availability and supply chain uncertainties.
In addition to alternative fuels, the ministry has also encouraged the industry to increase the use of electricity in manufacturing operations and explore recycled aluminium and alternative materials to address rising raw material costs and supply constraints.
The initiative aligns with the government’s broader strategy to reduce fossil fuel dependence and accelerate the shift towards cleaner mobility. Schemes such as PM E-DRIVE and the Production Linked Incentive (PLI) scheme have already been introduced to support the transition to electric mobility and sustainable manufacturing.
While no automakers have reported production halts so far, Qureshi indicated that prolonged tensions in West Asia could begin impacting production and exports if the situation continues into April and beyond.
