Facing Delays: India’s Auto Industry Struggles with Chinese Magnet Exports

The Indian auto industry finds itself in a precarious situation as it awaits crucial imports of rare earth magnets from China. Despite around 40-50 industry executives having acquired visas, they are holding off on travel due to the absence of formal approval from the Chinese commerce ministry, according to industry insiders.

The situation poses significant risks, as the industry is grappling with potential shortages that could disrupt production. The scarcity of rare earth magnets, essential for various automotive applications, has pushed domestic stakeholders to seek governmental assistance in expediting Chinese approvals.

China's restrictions on the export of rare earth elements, implemented since April 4, have complicated matters. With over 90% control of the global magnet processing capacity, China's mandate for special export licenses exacerbates the challenges. As of May 2025, Indian companies have submitted nearly 30 import requests, yet none have been fulfilled, intensifying concerns of impending production impacts.

(With inputs from agencies.)