Maruti Suzuki Unaffected Amid Rare Earth Magnet Crisis
Despite China's export restrictions on rare earth magnets, Maruti Suzuki's production remains unaffected. The Indian auto giant continues operations without disruption, attributing stability to anticipated licenses. However, broader industry faces challenges due to scarcity of essential raw materials crucial for various sectors, including automobiles.
- Country:
- India
Maruti Suzuki India has reported that its production remains unaffected by the ongoing shortage of rare earth magnets, a critical component in many industries, despite restrictions from China. Chairman R C Bhargava confirmed that operations at the company are proceeding as planned, with no immediate disruptions.
China, which processes over 90% of global rare earth magnets, recently imposed stricter export controls, requiring special licenses since April 4. These constraints have raised concerns across industries reliant on these materials, including automotive, home appliances, and clean energy sectors.
Bhargava expressed optimism, stating that, provided licenses are issued as expected, production will continue smoothly. Meanwhile, the domestic automobile industry is seeking government intervention to expedite approvals from China, as some suppliers await necessary permissions.
(With inputs from agencies.)
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