automotive

Automotive Industry "Shaken" By Iran-Israel War

Due to a number of countries currently involved in a ceasefire (war), it could have a wide impact on the automotive industry. In fact, there is a threat that a third world war will break out if major countries are involved. 

The General Chairperson of the Association of Indonesian Automotive Industries (Gaikindo), Yohannes Nangoi, is very worried that if geopolitical conflict tensions heat up, a third world war is at risk of erupting. This will also have an impact on the global economy, especially on the automotive industry. 

Nangoi said that the two countries in conflict, namely Pakistan and India, are currently quite at risk, because their locations are close to Southeast Asia. Then, the conflict in the Middle East is also spreading with the mutual attacks between Israel and Iran. Moreover, the United States and Russia are giving each other warnings. 

"Now in the Middle East, Israel and Hamas are starting to ease a little, eh with Iran it is even bigger. Then the supporting countries have expressed their support for each other," said Nangoi in Jakarta, Wednesday (6/18/2025). 

If the conflict spreads, the source of materials needed to produce cars will be difficult to obtain. In fact, import tariffs will be higher which threatens the automotive industry to collapse. 

"So we still don't know, hopefully there won't be a bigger war. Because if that happens, it could be the third world war. If that happens, it's over actually," he said. 

Tag: Automotive Industry Gaikindo Iran Israel War