New Delhi, Nov. 3 -- A Chinese-owned company headquartered in the Netherlands is at the epicentre of a new semiconductor chokepoint roiling the global auto industry. The situation, coming soon after the rare earth magnets crisis hit supply chains, has forced Indian carmakers to issue clarifications to investors during quarterly earnings calls.

The Dutch government's move to take control of chipmaker Nexperia has provoked Chinese retaliation, constricting supplies of critical chips used in millions of vehicles across the world, including those made by Indian carmakers. Notably, such chips are not yet locally produced in India.

The country's two largest carmakers-Maruti Suzuki India Ltd and Hyundai Motor India Ltd-said in the past few day...