India, March 19 -- The Indian auto industry is witnessing steady demand, particularly in passenger vehicles and two-wheelers, supported by improving consumption trends. However, margin pressures remain due to rising costs and supply challenges. The latest update on the auto sector presents a mixed picture, with stable fuel supply aiding demand, while global uncertainties, higher energy prices, and raw material costs continue to impact profitability and pose production risks.

Energy Supply Disruptions The ongoing tensions between the US and Iran have resulted in tighter gas supply. Many car manufacturers rely on gas as an input to some critical processes such as painting and metal forging. While the companies are currently holding invento...