The Indian auto component industry has no immediate solution to tackle the crisis triggered by China’s ban on rare earth exports, Automotive Component Manufacturers Association (ACMA) president Shradha Suri Marwah said on Friday. However, she added that the industry is working on long-term alternatives.
“On the rare earths, we can say that we don't have any short-term solutions for this crisis,” Marwah said. The Indian automotive sector, particularly the electric vehicle (EV) segment, has been facing supply-chain disruptions since China imposed stringent export restrictions on rare earth magnets. These materials, though low-cost, are functionally critical for modern vehicles. Their scarcity has threatened component manufacturing, delayed new model launches, and cast uncertainty over the industry’s growth trajectory.
Though Beijing announced a partial easing of restrictions after recent diplomatic talks, supplies of critical magnets from China have yet to resume. This has left auto component manufacturers struggling to manage day-to-day shortfalls. “The industry has started to work on solutions involving lighter rare earths. That’s why, contrary to fears that the sector would come to a grinding halt in the absence of heavy rare earths, we are trying to overcome the challenge through alternate solutions using lighter rare earths,” said Vinnie Mehta, Director General of ACMA.