Highlights
- Major Indian automakers like Maruti Suzuki and Mahindra warn of potential production stoppage by mid-July due to China's export restrictions on rare earth magnets.
- The supply crunch is disrupting component flows for both electric and internal combustion vehicles, risking new model launches.
- The Indian government is responding by sending an industry delegation to Beijing and fast-tracking plans for domestic rare earth magnet production.
India’s top automakers—including Maruti Suzuki, Mahindra & Mahindra, Hyundai, and Bajaj Auto—warn production could halt by mid-July due to China’s export restrictions on rare earth magnets, according to The Times of India. The supply crunch is already disrupting component flows for EVs and internal combustion models, threatening new model launches and derailing India's automotive momentum.
As Rare Earth Exchanges (REEx) chronicled this evening, in response, the Indian government reports the Times of India is dispatching an industry delegation to Beijing to expedite approvals, while fast-tracking plans for a domestic rare earth magnet industry. This crisis highlights the strategic vulnerability of even major economies still reliant on China’s rare earth chokehold, issuing a sharp warning to Western nations that continue to delay serious investment in local magnet production and diversified refining capacity.
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