Shift away from oil-based fuel to electricity: MHI tells auto sector

Ministry advises automakers to cut oil-based fuel use, optimise production and explore alternatives amid supply constraints triggered by West Asia conflict

The Ministry of Heavy Industries (MHI) on Wednesday asked the automotive industry to shift away from oil-based fuels to electricity and optimise production processes to reduce fuel consumption, amid supply disruptions triggered by the ongoing West Asia conflict, Business Standard has learnt.

 

In a communication sent to the Automotive Component Manufacturers Association of India (ACMA) and the Society of Indian Automobile Manufacturers (SIAM), the ministry said: “I am directed to state that, in line with the Government’s ongoing efforts to enhance energy efficiency in the industrial sector in the wake of the prevailing West Asia/Middle East crisis, it is requested that the automotive industry may be advised to undertake the following measures.” 

The ministry has urged companies to transition away from oil-based fuels “wherever technically feasible” and instead use electricity, while also optimising production schedules to minimise idle and “standby fuel consumption”, meaning reducing energy used when machines are running but not actively producing. 

In addition to energy-related measures, the government has flagged concerns over supply constraints in metals, particularly aluminium. It has asked the industry to “explore the possibility of using recycled aluminium, wherever technically feasible”, which involves reusing processed scrap metal instead of relying on fresh raw material. 

Further, automakers and component manufacturers have been advised to evaluate the use of alternative materials such as HDPE (high-density polyethylene, a strong plastic used in packaging), uPVC (unplasticised polyvinyl chloride, a rigid and durable plastic), ultra-high-strength steel (a type of steel designed to provide higher strength with less weight), and GFRP composites (glass fibre-reinforced polymers, lightweight materials made by combining plastic with glass fibres) in packaging and other non-critical applications to ease demand pressure on aluminium during the shortage period.

 

“This is aimed at reducing demand pressure on aluminium during the current shortage period, without affecting end-product performance, wherever technically feasible,” the ministry said.

 

The two industry bodies have been requested to circulate these recommendations among their members for “suggested implementation”, signalling a coordinated push to manage input shortages and energy use amid heightened geopolitical uncertainty.

 

The fresh conflict in the Gulf region started after the United States and Israel conducted military strikes on Iran on February 28. This has disrupted the flow of fossil fuels — such as LPG (liquefied petroleum gas), PNG (piped natural gas), and propane (a fuel used in metal processing and cutting) — which are key inputs for automobile and auto component manufacturing.