India's Auto Industry Faces Rare Earth Magnet Shortage Amid Chinese Export Restrictions

The Automotive Component Manufacturers Association of India (ACMA) has called for a strategic national plan to address the shortage of rare earth magnets, crucial for electric vehicle production. The appeal comes after China imposed export restrictions, raising concerns over potential losses in India's auto component sector.

ACMA President Shradha Suri Marwah emphasized the industry's urgent need to become self-reliant as it faces a crisis due to China's new licensing requirements on rare earth exports. She highlighted ongoing efforts to develop alternative solutions and underscored the industry's determination to avoid similar dependencies in the future.

With the rare earth magnet imports halted since April, India plans to leverage its raw materials domestically. Despite supply chain disruptions and geopolitical hurdles, the auto components industry recorded a significant turnover and growth, reflecting India's increasing manufacturing competitiveness and localization efforts.

(With inputs from agencies.)