Sona Comstar CEO Calls for Action on Rare Earth Supply Constraints

Vivek Vikram Singh, Managing Director and Group CEO of Sona Comstar, has urged the Indian government to engage with China to address supply constraints on rare earth metals crucial to the auto component industry. Singh emphasized the need for a resolution, stating, "We need solutions. The government should talk to the Chinese side and get rid of these rare earth export controls. The interim solution (using rare-earth-free magnets) is not the best. This affects us and our customers," he told ANI during an event in New Delhi.

Sona Comstar experienced production losses due to shortages, having turned to alternative materials with certain drawbacks, Singh admitted. "In August, we reached a 95% production level with heavy, rare-earth-free magnets, but they are less efficient for cars and buses," he explained. China's recent export controls on rare earths have intensified global supply issues, highlighting vulnerabilities in critical sectors.

While India aims to diversify rare earth sourcing through imports, mining, and partnerships, global dependence on China—who produces over 90% of such materials—poses challenges. Singh welcomed recent GST rate cuts, describing them as a "boon" for industry growth, and emphasized the significance of the impending India-EU FTA for expanding the auto market.