The state government said wages for unskilled workers would rise to about $165 per month from roughly $120, effective April 1, marking the first such policy move in response to the economic fallout from the ongoing U.S.-Israel-Iran war.

The decision followed clashes between police and workers in Manesar, located near New Delhi and home to major manufacturing facilities including Maruti Suzuki and numerous supplier units. Authorities urged workers to resume duties peacefully after the announcement.

Workers said surging food prices, driven by disrupted gas supplies, had strained household budgets. India, the world’s second-largest importer of liquefied petroleum gas, is facing one of its most severe supply disruptions in decades, prompting the government to prioritize household consumption over industrial use.

The wage hike is expected to ease pressure on workers but add to cost burdens for automakers already grappling with higher raw material prices. Companies such as Tata Motors and Mahindra & Mahindra have raised vehicle prices, while Maruti has indicated similar steps may follow.

Industrial activity in Manesar was partially disrupted as workers boycotted shifts and staged protests. Employees reported that food costs had nearly doubled, with some migrant workers returning to their home villages due to rising expenses and uncertain supplies.

Suppliers including Munjal Showa said production was affected, while firms such as Roop Polymers reported limited disruption and a return to normal operations after the protests subsided.India’s auto sector relies heavily on migrant labor, with millions traveling to industrial clusters for work.

Industry groups warned that retaining workers has become a priority, with some companies offering meals and bonuses to prevent further departures.

Executives said supply chains could take weeks to stabilize even if geopolitical tensions ease, as disruptions to energy supplies continue to ripple through manufacturing and labor markets.

The ‘Scorpio’ car manufacturer, will invest 5.25 billion and the remaining will come from existing shareholders and new investors, Mahindra said in an exchange filing.

Mahindra owns 60% of Classic Legends, which manufactures two-wheelers such as Jawa, Yezdi, and BSA.

It is not immediately clear who the other investors are.

The investment comes at a time when the Indian premium motorcycle market is seeing aggressively priced models from international companies like Harley-Davidson (HOG.N) and Triumph through domestic partnerships with Hero MotoCorp (HROM.NS) and Bajaj Auto (BAJA.NS).

While Classic Legends has revived heritage brands like Yezdi and Jawa, they have not been able to penetrate the premium segment, which is largely dominated by Eicher Motor’s (EICH.NS) Royal Enfield.

Classic Legends will use the investment to build a strong business in the fast-growing premium motorcycle segment in India, Mahindra said, without elaborating.

XUV is among SUVs such as Scorpio and Thar manufactured by Mahindra, India’s second-largest maker of such vehicles by volume.

Also, 3,560 units of XUV400 vehicle manufactured between Feb. 16, 2023 and June 5, 2023 will also be inspected for ineffective spring return action of the brake potentiometer, Mahindra added.

“The inspection and subsequent rectification will be carried out free of cost for all customers, who will be individually contacted by the company,” Mahindra said.

The freight carrier posted a consolidated net loss after tax of 85.5 million rupees ($1.04 million) in the three months ended June 30, compared with a profit of 135.2 million rupees a year earlier.

Consolidated total expenses surged nearly 10% to 12.99 billion rupees.

The company had earlier flagged an impact on its business from slowing network expansion in e-commerce and consumer markets, which analysts believe led to weakening demand resulting in a muted quarter with limited volume growth.

It had also cautioned about a spillover from larger events like global financial turmoil and unseasonal rain in some parts of the country.

The last time the company had posted a loss after tax was in the quarter ended June 2020, during the COVID-19 pandemic that hit the cargo movement industry as economic activities across the world came to a halt.

Consolidated revenue from operations rose about 8% to 12.93 billion rupees, lifted by more than 6% growth in its mainstay supply chain management business.

The company, in an exchange filing, said demand is expected to improve in FY24 with the return to office being normalised.

Its enterprise mobility services segment surged 39% to 794.6 million rupees.

The logistics arm of Mahindra Group, which competes with Delhivery (DELH.NS), offers services like cargo and freight movement, workforce management and warehousing facilities to multiple industries.

Shares of Mahindra Logistics ended 2.7% lower after the results