German automakers association VDA said that the fallout from Russia's invasion of Ukraine was disrupting transport routes as well as financial transactions and that it was bracing for shortages in a range of raw materials.
"It is difficult to provide a reliable outlook due to the highly dynamic situation. But one thing is clear: There will be further disruption of vehicle production in Germany," VDA said in a statement on Wednesday.
It said the impact from the conflict on shipping, rail and air freight was compounding problems in the supply chain at a time when inventory levels were already low.
"In the long term, the car industry is facing shortages and higher prices of raw materials," VDA said.
The association in particular highlighted neon gas, which is needed to produce already scarce automotive microchips and where Ukraine is a key exporting nation.
The supply of palladium, which goes into catalytic converters, is also thrown in doubt as Germany relies on Russia for about one fifth of imports.
VDA also cautioned that Russia is an important supplier of nickel ore, which is refined to go into lithium-ion car batteries.
German chemicals giant BASF in 2018 secured access to nickel, which it refines in Finland for use in battery materials, through a partnership with Russia’s Norilsk Nickel.