War-led supply chain strain could hit auto market: Volvo India President

Vijayawada: India president and managing director on Friday said that the Israel-US and Iran war hasn’t directly affected the automotive industry in the country yet but that if supply chain constrains crop up then the automotive industry, including the company, will be hit.

Bali said he cannot figure out how the war is directly impacting the industry right now, observing that the impact may manifest with a little bit of a time delay.

“There is no direct impact on anyone right now. You can’t say how is it directly impacting. The impact will be with a little bit of time delay. If the supply chain becomes constricted then it is a problem for Volvo and the rest of the automotive industry,” Bali told PTI on the sidelines of a CII conference here.

However, he observed that if the war, which is currently under a fortnight-long conditional ceasefire between the US and Iran, stops now, then India as a country and the Indian industry as a whole has the wherewithal and the resilience to bear the damage inflicted thus far.

“Hopefully if the war ends now, the damage will be limited and we can dive through that. I think India as a country has the resilience to bear this much. I hope it doesn’t go much longer. If it stops now, I think we are good,” said Bali, adding that if it goes on then it could spell trouble.

Further, he said the war should stop for many others reasons, and added that the killing of people should stop.

Reflecting on Volvo Group India’s performance, which involves trucks, buses, construction equipment, Volvo Penta Financials, Volvo Penta and Volvo Financial services, he said it is faring very well.

Highlighting that the company is enjoying a strong position, Bali said it is currently the third largest in its category, which includes a joint venture with .

Bali expressed happiness over the impact the Swedish automotive giant is making in the largest South Asian economy, especially with the kind of technology it is ushering in the ecosystem it is creating in terms of better logistics efficiencies, and a whole host of other good things happening to the sector.

Further, he reiterated Volvo’s commitment to abandon fossil fuels, reaffirming the 2040 deadline for accomplishing the Net Zero goal.

Replacing fossil fuels, he said Volvo will deploy technologies such as battery electric, hydrogen fuel cells, H2I solutions and all other pathways.

Reflecting on Andhra Pradesh, Bali said it is a good automotive market for Volvo though there is no particular plan for the southern state.

“We constantly keep looking at whole of India, various geographies, wherever we can make further inroads, wherever we think we can do more we will continue,” he said.

Moreover, Bali noted that Andhra Pradesh is a good market for Volvo in the mining sector and others.