Revving Up: India's Auto Industry Calls for National Strategy on Rare Earths

The automotive industry in India is facing significant challenges due to a shortage of rare earth magnets, crucial for electric vehicle production. In response, the Automotive Component Manufacturers Association of India (ACMA) has called for a national strategy on critical materials to mitigate potential production losses.

ACMA President Shradha Suri Marwah expressed urgent concern over the limited availability of these magnets, emphasizing their importance to the industry's future. Despite geopolitical challenges and supply chain disruptions, the industry achieved a USD 80.2 billion turnover in FY2025, marking a 10% growth over FY2024.

The sector's growth, at a CAGR of 14% from FY20 to FY25, highlights its resilience, driven by domestic demand, exports, and innovation. As India advances towards modern mobility solutions, investments in technology and localization continue to strengthen the industry's global and domestic market presence.

(With inputs from agencies.)