Auto Industry Bodies Call for Closer Cooperation With Govt to Secure Critical Raw Materials

Auto industry bodies on Friday stressed on the need for closer cooperation with the government to secure critical raw materials such as rare earth magnets, and technologies amid shifting geopolitical alignments and evolving trade agreements.

The industry has a shared resolve to transform challenges into opportunities and position India as a reliable and competitive global hub for mobility components while navigating geopolitical challenges, creating a resilient automotive supply chain in India, ACMA President Shradha Suri Marwah said.

In her address at the annual session of Automotive Component Manufacturers Association of India (ACMA), she said, "Critical raw materials, the availability of rare earth magnets, semiconductors and battery inputs is becoming a strategic issue that requires national focus." Marwah further said,"We stand at crossroads where opportunities are immense but challenges are daunting to allude to, some of them, geopolitical volatility, trade wars, tariff escalations, export restrictions are all redefining the supply chain." Going forward, Marwah said,"I see closer government partnerships to secure critical raw materials, deepen international alliances for access to newer markets and strengthen our industry's overall competitiveness." Expressing similar views, Society of Indian Automobile Manufacturers (SIAM) President Shailesh Chandra said supply chains must go beyond cost efficiency to become agile, diversified and capable of withstanding disruptions.

This means actively working on creating alternative supply chains by partnering with resource rich countries, he added.

"Here, while the business to business relations are important, governments' intervention in both the countries needs to be a catalyst for such partnerships," Chandra asserted.

These partnerships need to leverage the strength of each of the countries, which could range from either availability of raw materials or technologies, he noted.

Over the past few years, Chandra said, the global trade and manufacturing environment has been undergoing profound changes.

"Factors such as shifting geopolitical alignments, evolving trade agreements and rapid technological transitions have collectively redefined the way supply chains operate," he added.

The Indian automotive industry, deeply integrated with the global networks, is both impacted by and responding to these shifts today, Chandra noted.