India's Auto Industry Races Against Time Amid China's Rare Earth Magnet Export Restrictions

A delegation of representatives from the Indian auto industry is preparing for a visit to China to urgently address the import of rare earth magnets, crucial for electric vehicle production. Despite receiving visa approvals, company executives are still waiting on the Chinese commerce ministry's nod for the visit.

The situation stems from China's stringent export restrictions imposed on April 4, which require special licenses for the export of seven rare earth elements. These magnets are critical for industries spanning from automobiles to clean energy. As a result, Indian automakers, including Maruti Suzuki, are facing production challenges.

The Indian auto sector has urged the government to expedite discussions with China to alleviate the bottleneck. Crisil Ratings warns that extended delays due to these export restrictions could result in significant production disruptions for electric vehicles and eventually affect two-wheelers and ICE vehicles.

(With inputs from agencies.)