New Delhi, March 22 -- The effective shutdown of the Strait of Hormuz poses a severe threat to the Indian automobile sector, specifically endangering cargo movement due to a looming shortage of technical grade urea.

A DAM Capital report noted that the maritime disruption compromises the supply of essential chemicals and raw materials, potentially bringing the country's logistics network to a standstill.

The crisis centres on India's heavy reliance on imports for its automotive emissions control systems, which are now facing an immediate bottleneck.

According to the report, India currently imports 50-60 per cent of its technical grade urea (TGU) requirements from major trade hubs in Egypt and Dubai. This specific grade of urea is a crit...