Indian automobile industry body delegation is mulling to visit China to hold talks to ease the import of rare earth magnets. Nearly 40-50 company executives have received visa approval but are waiting to get China’s commerce ministry’s nod to discuss the issue, PTI reported.
“Around 40-50 executives, representing both auto OEMs and component firms, have received visas and are now awaiting a go-ahead from China’s Ministry of Commerce for a meeting,” PTI reported, citing an industry source.
This comes just a month after China announced that the export of seven rare earth materials, including samarium, gadolinium, terbium and scandium, from the country will require prior special permits, accompanied by end-use certificates confirming non-military usage. China holds over 90% of the global processing capacity for magnets, which are crucial across sectors, including automobiles and electronics.
India, which secured around 80% of its 540 tonnes of magnet imports from China in the last financial year, has began to feel the pinch of the export curbs.
The move has already taken a toll on the Indian automobile industry, especially for electric vehicle production. Auto giants, including Maruti Suzuki, Ford, BMW, Mercedes and Nissan, have already announced a reduction in their production target driven by export restrictions on rare earths materials. Major companies like Nissan have started exploring alternate supply chains. Nissan CEO Ivan Espinosa had earlier informed that the giant is in discussion with the Japanese government to secure an alternative supply chain.
A similar route is being taken by the Indian government along with a push to develop domestic capabilities to reduce dependence on China. Commerce and Industry Minister Piyush Goyal had earlier said that the government is actively working with stakeholders from the industry to find a solution.
“Obviously, there are issues around the stopping of permanent magnets from China to India, which will affect our auto sector, especially two-wheelers and other industries. India is actively working with stakeholders to develop domestic capacity and reduce dependence on China,” the Commerce and Industry Minister said, according to Business Today.
