Production at Maruti Udyog, country's largest carmaker, may be hit by an over two-month long strike at DCM, one of its major vendors.
DCM supplies the bulk of Maruti's requirement of an important component for its engines.
The workers strike started in June this year and is likely to continue for a few more weeks, Maruti said on Saturday.
"The company is making alternative arrangements to source the component. But it may not be able to obtain all its requirement from alternative sources," the company informed the Bombay Stock Exchange.
The carmaker fears that production for exports may be particularly affected by the strike.
Export of Maruti cars, specially the hatchback car 'Alto' have been witnessing a surge in the last one year.
During April-June 2003, the company clocked a 264.8 per cent rise in car exports to 12,322 units.
During 2002-03, exports had spurted by 182.7 per cent to 31,518 cars.