Mahindra & Mahindra's Strategic Moves to Combat Rare Earth Magnet Shortage
Mahindra & Mahindra plans to navigate the rare earth magnet supply challenges with alternative sourcing and engineering efforts. With China's export restrictions affecting industries, the company aims for inventory resilience and quests for sustainable solutions amidst a growing product portfolio.
- Country:
- India
Amid escalating concerns over rare earth magnet supplies, Mahindra & Mahindra outlines strategies to mitigate the shortage through alternative sourcing channels for the next nine months. This comes as growing product demands coincide with restricted exports by China, impacting various sectors including automotive and electronics.
'We've effectively managed FY26 and are now focusing on medium and long-term strategies,' confirmed Amarjyoti Barua, Mahindra & Mahindra's Group CFO in an interaction. He detailed how the company is determined to sustain inventory levels and emphasize engineering solutions to alleviate supply pressures.
Despite the disruption, Mahindra & Mahindra, alongside peers like Maruti Suzuki and Hyundai, reports minimal immediate risks to production. Rating agencies have highlighted potential inventory depletion, but the sector remains steadfast in engineering solutions and alternative sourcing to maintain market stability.
(With inputs from agencies.)
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