Diesel shipping at risk if urea supplies are disrupted: Automotive industry

NEW DELHI: The automobile industry has warned the government that diesel vehicle operations and supply chain may be disrupted due to uncertainty in the supply of technical grade urea (TGU). Technical grade urea (TGU) is a key raw material for the production of diesel exhaust fluid (DEF) resulting from the conflict in West Asia.In a letter to the government, the Association of Indian Automobile Manufacturers warned that disruption in TGU imports due to transport issues in West Asia could affect the supply of DEF, which is mandatory under Bharat Phase VI to reduce emissions from diesel vehicles. The industry body said that “the TGU supply situation remains unclear beyond early April 2026” as route and port operations in the region face disruptions.

The letter pointed out that 50-60% of India’s TGU demand is currently imported through hubs such as Dubai and Egypt, and any disruption in DEF supply may have a wider impact on India’s transportation ecosystem.“All BS-VI commercial vehicles and large diesel buses are equipped with a mandatory engine interlocking mechanism which renders the vehicle inoperable if the DEF level is depleted,” it said.It asked the government to direct Gujarat Narmada Valley Fertilizers & Chemicals, the country’s only domestic TGU producer, to maximize production and prioritize DEF-made supplies until imports normalize. GNFC currently produces 15,000-20,000 tons of TGU per month, which only meets about 50% of the country’s needs, with the rest met through imports.In addition to the TGU, SIAM and the Automotive Components Manufacturers Association are seeking to ensure continued supplies of liquefied petroleum gas, piped natural gas and propane used in multiple vehicle manufacturing processes, warning that any restrictions could disrupt production and affect the wider automotive supply chain.The ACMA said exporters faced rising logistics costs and shipment delays, with export delivery times increasing by 2-4 weeks due to ship diversions, container shortages and rising insurance premiums.SIAM Director General Rajesh Menon said the geopolitical situation remains a concern for the automotive industry. “While March was festive in many parts of the country, recent conflicts in West Asia remain concerning from a supply chain perspective, which could impact manufacturing processes and exports,” he said.Industry executives also told TOI about emerging shipping disruptions. Ishwar Kumhar, co-founder and CEO of original equipment manufacturing startup Brandworks Technologies, said global shipping routes have changed due to the crisis, leading to occasional delays and freight rate fluctuations.