Latest news with #Makkar
NDTV
12-06-2025
- Automotive
- NDTV
India's Auto Sector At Risk As China's Rare Earth Magnet Curbs Tighten: ICRA
New Delhi: Rare-earth magnet inventories are likely to 'taper off' by mid-July 2025 for the automobile industry, weighed down by the export restrictions from China and ensuing shipment delays, according to a release by rating agency ICRA. "With China tightening export controls and delaying shipment clearances, rare earth magnet inventories are projected to last only until mid-July 2025 for several, if not all, passenger vehicle and two-wheeler applications," Jitin Makkar, Senior Vice President and Group Head - Corporate Ratings, ICRA Limited. The Industry is looking for contingency options and alternative supply chains, but it is riddled with difficulties. "While the automobile industry is exploring a range of contingency options, each of these appears ridden with logistical, regulatory, and engineering complexities, exacerbating the prevailing uncertainty," the rating agency said. "India imported around USD 200 million worth of these magnets for both automotive and non-automotive applications, with approximately 85% of this sourced from China. While the trade value may appear modest, the strategic dependence it reflects is anything but the supply uncertainty has cast a shadow on production planning. The dependence on China for these specialised materials could upend the automobile sector, particularly the fast-growing electric vehicle segment, if the concern remains unresolved." Makkar added. In order to deal with this risk, India is exploring various options such as importing fully assembled motors from China, or shipping the rotors, on which the rare earth magnets are mounted, to China for magnet assembly and then re-importing the assembled rotors. Additionally, substituting rare earth magnets with alternatively engineered materials or introducing rare earth magnet-free motors could also be seen as alternative options. However, a Maruti Suzuki spokesperson on Thursday said, "Regarding the situation on rare earth, as of now, there is no disruption in our operation due to this issue. There is a lot of uncertainty and the situation is continuously evolving." Maruti Suzuki added, "We are monitoring the situation and pursuing multiple solutions to ensure continuity in our operations. If and when there is any material impact to our business, we will inform all stakeholders in line with regulatory requirements."
Hans India
12-06-2025
- Automotive
- Hans India
Electric vehicle production may be hit as China chokes supply of rare earth magnets
New Delhi: The inventories of rare earth magnets may taper off by mid-July 2025 for certain automotive applications, following China imposing export restrictions and delaying clearance of shipments, according to an ICRA report released on Thursday. While the automobile industry is exploring a range of contingency options, each of these appears ridden with logistical, regulatory, and engineering complexities, exacerbating the prevailing uncertainty, the report states. Jitin Makkar, Senior Vice President at ICRA, said: "The industry, having recovered from the semiconductor supply crunch of 2021–22 that shaved off nearly 100,000 units - or about 4 per cent - from passenger vehicle production, now faces a fresh disruption. With China tightening export controls and delaying shipment clearances, rare earth magnet inventories are projected to last only until mid-July 2025 for several, if not all, passenger vehicle and two-wheeler applications.' The magnets in question—neodymium-iron-boron (NdFeB)—are prized for their strength and efficiency. They are reserved for high-performance automotive applications such as traction motors in electric vehicles (two-wheelers and passenger vehicles) and power steering motors (in passenger vehicles) in both electric vehicles and internal combustion engine vehicles. In FY2025, India imported around $200 million worth of these magnets for both automotive and non-automotive applications, with approximately 85 per cent of this sourced from China. "While the trade value may appear modest, the strategic dependence it reflects is anything but. The supply uncertainty has cast a shadow on production planning. The dependence on China for these specialised materials could upend the automobile sector, particularly the fast-growing electric vehicle segment, if the concern remains unresolved', Makkar added. The report further states that to mitigate the risk, Indian auto component manufacturers/Original Equipment Manufacturers (OEMs) are exploring a range of options. These include importing fully assembled motors from China, shipping the rotors, on which the rare earth magnets are mounted, to China for magnet assembly and then re-importing the assembled rotors. They are also substituting rare earth magnets with alternatively engineered materials aimed at achieving similar magnetic performance as rare earths without crossing the threshold that would classify them as rare earth magnets. These workarounds, however, come with logistical, regulatory, and engineering complexities. Implementing some of these alternatives would also involve accelerating the development, testing, and validation cycles to minimise production disruptions. The stakes are high. As Indian manufacturers push towards securing a stable supply chain, the challenge with critical components like rare earth magnets is their concentrated sourcing destination. The current crisis, while disruptive, may also serve as a catalyst for innovation and strategic diversification - both in sourcing and in science, the report added.
India Gazette
12-06-2025
- Automotive
- India Gazette
Supply uncertainty of rare earth magnets from China could weigh auto industry: ICRA
New Delhi [India], June 12 (ANI): Rare-earth magnet inventories are likely to 'taper off' by mid-July 2025 for the automobile industry, weighed down by the export restrictions from China and ensuing shipment delays, according to a release by rating agency ICRA. 'With China tightening export controls and delaying shipment clearances, rare earth magnet inventories are projected to last only until mid-July 2025 for several, if not all, passenger vehicle and two-wheeler applications,' Jitin Makkar, Senior Vice President and Group Head - Corporate Ratings, ICRA Industry is looking for contingency options and alternative supply chains, but it is riddled with difficulties. 'While the automobile industry is exploring a range of contingency options, each of these appears ridden with logistical, regulatory, and engineering complexities, exacerbating the prevailing uncertainty,' the rating agency said.'India imported around USD 200 million worth of these magnets for both automotive and non-automotive applications, with approximately 85% of this sourced from China. While the trade value may appear modest, the strategic dependence it reflects is anything but the supply uncertainty has cast a shadow on production planning. The dependence on China for these specialised materials could upend the automobile sector, particularly the fast-growing electric vehicle segment, if the concern remains unresolved.' Makkar added. In order to deal with this risk, India is exploring various options such as importing fully assembled motors from China, or shipping the rotors, on which the rare earth magnets are mounted, to China for magnet assembly and then re-importing the assembled substituting rare earth magnets with alternatively engineered materials or introducing rare earth magnet-free motors could also be seen as alternative a Maruti Suzuki spokesperson on Thursday said, 'Regarding the situation on rare earth, as of now, there is no disruption in our operation due to this issue. There is a lot of uncertainty and the situation is continuously evolving.' Maruti Suzuki added, 'We are monitoring the situation and pursuing multiple solutions to ensure continuity in our operations. If and when there is any material impact to our business, we will inform all stakeholders in line with regulatory requirements.' (ANI)
Time of India
12-06-2025
- Automotive
- Time of India
Rare earth magnet supplies for certain applications may taper off by mid July: Report
Inventories of rare earth magnets may taper off by mid-July for certain automotive applications, following the export restrictions from China and ensuing shipment delays, rating agency Icra said on Thursday. While the automobile industry is exploring a range of contingency options, each of these appears ridden with logistical, regulatory, and engineering complexities, exacerbating the prevailing uncertainty, it stated. The industry, having recovered from the semiconductor supply crunch of 2021-22 that shaved off nearly 100,000 units, or about 4 per cent, from passenger vehicle production, now faces a fresh disruption, Icra Senior Vice President and Group Head-Corporate Ratings Jitin Makkar said in a statement. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Be their reason to smile HelpAge India Donate Now Undo "With China tightening export controls and delaying shipment clearances, rare earth magnet inventories are projected to last only until mid-July 2025 for several, if not all, passenger vehicle and two-wheeler applications," he added. The magnets in question - neodymium-iron-boron (NdFeB) - are known for their strength and efficiency, used for high-performance automotive applications such as traction motors in electric vehicles (two-wheelers and passenger vehicles) and power steering motors (in passenger vehicles) in both electric vehicles and internal combustion engine vehicles. Live Events The more conventional ferrite magnets are used for less performance-sensitive applications such as wiper motors, window regulators, and starter motors. "In FY2025, India imported around USD 200 million worth of these magnets for both automotive and non-automotive applications, with approximately 85 per cent of this sourced from China," Makkar said. The supply uncertainty has cast a shadow on production planning, and the dependence on China for these specialised materials could upend the automobile sector, particularly the fast-growing electric vehicle segment, if the concern remains unresolved, he added. To mitigate the risk, Indian auto component manufacturers, OEMs (original equipment manufacturers) are exploring a range of options, including importing fully assembled motors from China. These workarounds, however, come with logistical, regulatory, and engineering complexities. Implementing some of the above alternatives would also involve accelerating the development, testing, and validation cycles to minimise production disruptions, Icra noted.
Time of India
12-06-2025
- Automotive
- Time of India
Rare-earth magnet supply concerns may disrupt auto production by July: ICRA
Following the curbs imposed by China on rare earth exports, inventories of rare-earth magnets used in automotive applications may last only until mid-July 2025, ICRA has cautioned in its latest report. The shortage could impact production of both electric and internal combustion engine vehicles in India, particularly in high-performance applications. Jitin Makkar, Senior Vice President and Group Head – Corporate Ratings, ICRA, said: 'The current unease over rare earth magnet supplies feels all too familiar for India's automobile industry. The industry, having recovered from the semiconductor supply crunch of 2021–22 that shaved off nearly 100,000 units—or about 4 per cent—from passenger vehicle production, now faces a fresh disruption." "With China tightening export controls and delaying shipment clearances, rare earth magnet inventories are projected to last only until mid-July 2025 for several, if not all, passenger vehicle and two-wheeler applications,' he added. The magnets in focus—neodymium-iron-boron (NdFeB)—are used in traction motors for electric two-wheelers and passenger vehicles, as well as power steering motors across both EV and ICE segments. These magnets differ from ferrite magnets, which are deployed in less demanding systems such as wiper motors and window regulators. Limited alternatives and rising cost pressures 'Motors used in electric two-wheelers typically range in cost from ₹8,000 to ₹15,000, depending on their power output and vehicle specifications. Of that, rare earth magnets account for nearly 30 per cent of the total motor unit cost,' said Makkar. 'In FY2025, India imported around $200 million worth of these magnets for both automotive and non-automotive applications, with approximately 85 per cent of this sourced from China. While the trade value may appear modest, the strategic dependence it reflects is anything but. The supply uncertainty has cast a shadow on production planning.' To mitigate the risk, Indian OEMs and component suppliers are exploring options such as importing fully assembled motors from China, sending rotors to China for magnet assembly and re-importing them, substituting rare earth magnets with engineered materials that do not meet the rare earth threshold, or using magnet-free motors based on electromagnets or inductive mechanisms. However, these approaches involve logistical, engineering, and regulatory challenges. 'Implementing some of the above alternatives would also involve accelerating the development, testing, and validation cycles to minimise production disruptions,' ICRA noted. The current supply situation has highlighted India's dependence on a single source for critical materials. While disruptive, ICRA suggests this challenge may also drive efforts toward supply chain diversification and innovation in material science.
