Indian auto industry to send delegation to China over rare earth magnets import delays
- In Reports
- 06:36 PM, May 31, 2025
- Myind Staff
The Indian auto industry prepared to dispatch a senior-level delegation to China next week to address growing concerns about delayed imports of rare earth magnets, according to a report in The Economic Times.
China’s new export restrictions on rare earth materials, which came into effect on April 4, caused the delay. These rules created procedural hurdles and led to significant shipment bottlenecks for Indian manufacturers, the report stated.
Multiple shipments of rare earth magnets, critical components used in electric motors and other automotive parts, remained stuck at Chinese ports. This situation triggered concerns about potential production halts starting in the first week of June. Joint industry delegation will meet with Chinese officials
A joint delegation consisting of representatives from the Society of Indian Automobile Manufacturers (Siam) and the Automotive Component Manufacturers Association (Acma) planned to meet senior Chinese government officials. Their goal was to speed up the approval process and resume the consistent flow of these essential imports, the report said.
India’s commerce and external affairs ministries coordinated closely with the Indian embassy in Beijing to support these high-level talks.
China continued to dominate the global rare earth supply chain. It processed about 70–80 percent of the world’s rare earth elements and accounted for over 90 percent of rare earth magnet production. This made Indian automakers and component suppliers heavily reliant on Chinese imports.
Industry experts warned that any further delay could seriously impact vehicle manufacturing, especially in the fast-growing electric mobility segment, the report added.
Urgent pleas for government action
With inventories rapidly declining, Siam and Acma worked closely with India’s commerce ministry. According to Reuters on May 29, Siam alerted government officials that component manufacturers might run out of stock by the end of May. They requested urgent intervention from the highest levels of government, including the Prime Minister’s Office.
The upcoming delegation to China was expected to include representatives from leading original equipment manufacturers (OEMs) and component suppliers, particularly those involved in motor production.
Ministry to hold meeting to boost domestic production
In response to tightening supplies of rare earth magnets from China, the Ministry of Heavy Industries scheduled a meeting with key stakeholders on June 3. They aimed to finalise a concept note to promote local manufacturing of these magnets.
The plan proposed financial incentives for companies entering the sector. It also encouraged public-private partnerships to build rare earth processing and magnet manufacturing facilities within India. Additionally, it focused on identifying and collaborating with alternate international suppliers to reduce India’s dependence on China.
This initiative followed a meeting held on Wednesday between senior ministry officials and representatives of the automotive industry. During the discussion, industry participants expressed concerns about shrinking inventories of rare earth magnets. Many warned that without the quick resumption of imports from China, factories producing electric and internal combustion engine (ICE) vehicles could face shutdowns.
Comments