Stronger policies needed for Tamil Nadu to meet 2030 EV goals, says report
CHENNAI: A new report by the State Planning Commission and Guidance Tamil Nadu has stressed the need for strong policy support, failing which the state may not meet the nation's target to adopt Electric Vehicles (EVs) in over 20% commercial fleets by 2030.
The study, titled Tamil Nadu's Automotive Future, outlines a roadmap for transforming the state into a hub for clean mobility innovation. It calls for the creation of a high-level Mobility Innovation and Growth Council with representation from government, industry and academia, to coordinate cross-sector efforts.
A proposed 'Mobility Data Commons' would pool anonymised data from EVs, charging stations, and logistics platforms to inform real-time policy and urban planning.
Tamil Nadu currently produces the majority of India's electric two-wheelers and accounts for nearly half of all auto exports. However, EV sales remain modest, accounting for only 6.6% of total vehicle sales as of August 2024.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
3 hours ago
- Time of India
EV supply chain strain: Maruti Suzuki cuts e-VITARA production, rare earth magnets bottleneck worsens after China export curbs
India's largest automaker Maruti Suzuki is slashing the production forecast for its upcoming electric SUV e-VITARA, amid a critical shortage of rare earth magnets, according to industry sources. The company now aims to roll out 8,000 units by September, down sharply from the originally planned 26,000+ units. The automaker, however, plans to meet its full-year production target of 67,000 units by ramping up output in later months, sources added. Maruti Suzuki declined to officially comment on the matter. The shortfall comes as China tightens export restrictions on rare earth elements and magnets — materials critical for electric motors in EVs. Since April 4, Beijing has mandated special licences for exporting seven types of rare earths, including samarium, gadolinium, terbium, dysprosium, and lutetium, which are used in everything from EV propulsion systems to missiles. 'As of now, there is no impact on production,' Maruti Suzuki Chairman R C Bhargava said earlier this week. However, supply-side risks remain as China controls over 90% of global processing capacity for these essential materials. Carmakers urge Indian government to step in Several Indian carmakers have sought government intervention to expedite approvals from Chinese authorities via their local vendors for importing rare earth magnets. But no licences have been granted yet, creating uncertainty in the EV and hybrid vehicle manufacturing pipeline. Rare earth magnets are vital to permanent magnet synchronous motors (PMSMs), preferred in EVs for their high torque, efficiency, and compact design. While internal combustion engine vehicles use them in limited systems like electric power steering, their role is critical in electrified powertrains. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
4 hours ago
- Economic Times
Disruption of rare earth magnet supplies beyond 30 days can impact vehicle production in India: Report
Agencies Representative image. A disruption in rare earth magnet supplies lasting beyond a month can impact production of passenger vehicles, including electric models, weighing on the domestic automobile industry's growth momentum, a report on Tuesday said. Rare earth magnets, low in cost but critical in function, could emerge as a key supply-side risk for India's automotive sector if China's export restrictions and delays in shipment clearances persist, Crisil Ratings said in a statement. "The supply squeeze comes just as the auto sector is preparing for aggressive EV rollouts. Over a dozen new electric models are planned for launch, most built on PMSM platforms," Crisil Ratings Senior Director Anuj Sethi said. While most automakers currently have 4-6 weeks of inventory, prolonged delays could start affecting vehicle production, with EV models facing deferrals or rescheduling from July 2025, he added. A broader impact on two-wheelers and ICE PVs may follow if the supply bottlenecks persist for an extended period, Sethi said. "The shortage of rare earth magnets is forcing automakers to reassess supply-chain strategies. Despite contributing less than 5 per cent of a vehicle's cost, these magnets are indispensable for EV motors and electric steering systems," said Crisil Ratings Director Poonam Upadhyay. Automakers are actively engaging with alternative suppliers in countries such as Vietnam, Indonesia, Japan, Australia, and the US, while also optimising existing inventories, she noted. "With applications across EVs and ICE vehicles, a prolonged supply squeeze could disrupt production of PVs and 2Ws, making this low-cost component a potential high-impact bottleneck for the sector," she said. Rare earth magnets are integral to Permanent Magnet Synchronous Motors (PMSMs) used in EVs for their high torque, energy efficiency and compact size. Hybrids also depend on them for efficient propulsion. In internal combustion engine (ICE) vehicles, the use of rare earth magnets is largely limited to electric power steering and other motorised systems. In April this year, China, the world's dominant exporter of rare earth magnets, imposed export restrictions on seven rare earth elements and finished magnets, mandating export licences. The revised framework demands detailed end-use disclosures and client declarations, including confirmation that the products will not be used in defence or re-exported to the US. With the clearance process taking at least 45 days, this added scrutiny has significantly delayed approvals. And the growing backlog has further slowed clearances, tightening global supply chains. India, which sourced over 80 per cent of its 540 tonnes magnet imports from China last fiscal, has started to feel the impact. By end-May 2025, nearly 30 import requests from Indian companies were endorsed by the Indian government, but none have yet been approved by the Chinese authorities, and no shipments have arrived. During the pandemic, rare earth magnet supplies remained stable, unlike semiconductors, reinforcing reliance on just-in-time inventory without building strategic buffers. However, while semiconductors have a globally diversified supply base, over 90 per cent of rare earth magnet processing is concentrated in China, with limited short-term alternatives. Recognising the risk, the government and automakers are taking action on two fronts, Crisil said. In the short term, the focus is on building strategic inventories, tapping alternative suppliers and accelerating domestic assembly under Production Linked Incentive schemes. For the long term, reducing import dependency will hinge on fast-tracking rare earth exploration, building local production capacity and investing in recycling infrastructure, Crisil stated.
&w=3840&q=100)
Business Standard
4 hours ago
- Business Standard
Auto sector faces slowdown due to rare earth magnet shortage: Crisil
India's automotive industry is staring at potential slowdown due to shortage of rare earth magnets, a critical component for electric vehicles (EVs) and hybrids, ratings agency CRISIL has said. China's recently imposed export restrictions and prolonged shipment delays are disrupting the supply chain, which could impact production and the sector's growth trajectory. Rare earth magnets are integral to the permanent magnet synchronous motors (PMSMs) utilised in EVs, valued for their high torque, energy efficiency, and compact design. Hybrids also rely on these magnets for efficient propulsion. In internal combustion engine (ICE) vehicles, their use is primarily confined to electric power steering and other motorised systems. Anuj Sethi, Senior Director at CRISIL Ratings, said, 'The supply squeeze coincides with the auto sector's preparations for aggressive EV rollouts. Over a dozen new electric models are scheduled for launch, primarily on PMSM platforms.' He added, 'While most automakers currently possess 4-6 weeks of inventory, sustained delays could begin to affect vehicle production, with EV models potentially facing deferrals or rescheduling from July 2025. A broader impact on two-wheelers and ICE passenger vehicles may occur if supply bottlenecks persist for an extended period.' The Chinese wall In April 2025, China, the primary global exporter of rare earth magnets, implemented new export restrictions on seven rare earth elements and finished magnets. This revised framework necessitates export licenses, demanding detailed end-use disclosures and client declarations, including assurances that the products will not be used for defence or re-exported to the US. The clearance process now takes a minimum of 45 days, causing significant approval delays and exacerbating global supply chain tightness. India, which imported over 80 per cent of its approximately 540 tonnes of magnets from China in the last financial year, is experiencing the effects. By the end of May 2025, while the Indian government endorsed nearly 30 import requests from domestic companies, Chinese authorities had not approved any, resulting in no shipments reaching India. Poonam Upadhyay, director at CRISIL Ratings, said, 'The shortage of rare earth magnets is compelling automakers to re-evaluate supply-chain strategies. Despite contributing less than 5 per cent of a vehicle's cost, these magnets are essential for EV motors and electric steering systems.' She noted that automakers are engaging with alternative suppliers in countries such as Vietnam, Indonesia, Japan, Australia, and the US, while also optimising existing inventories. 'With applications across EVs and ICE vehicles, a prolonged supply squeeze could disrupt production of PVs and 2Ws, making this low-cost component a potential high-impact bottleneck for the sector. In a constrained supply scenario, magnets may also be diverted to ICE models, which require fewer units, potentially impacting EV growth,' Upadhyay explained. During the pandemic, rare earth magnet supplies remained stable, unlike semiconductors. This led to a reliance on just-in-time inventory without the establishment of strategic buffers. Unlike semiconductors, which have a globally diversified supply base, over 90 per cent of rare earth magnet processing is concentrated in China, offering limited short-term alternatives. The Indian remedy In response to this risk, the Indian government and automakers are taking action on two fronts. Short-term efforts focus on building strategic inventories, securing alternative suppliers, and accelerating domestic assembly under Production Linked Incentive schemes. Long-term objectives involve fast-tracking rare earth exploration, establishing local production capacity, and investing in recycling infrastructure to reduce import dependency. Diversification of supply sources is an ongoing effort, aligning with policy initiatives. The pace of China's export approvals for these magnets remains an immediate concern for automotive players. Domestic passenger vehicle volumes are projected to increase by 2-4 per cent in the financial year 2026, with electric PVs potentially rising by 35-40 per cent from a low base. Electric two-wheelers could see approximately 27 per cent growth, exceeding the overall 2W segment's 8-10 per cent growth. However, continued supply tightness could temper this momentum, particularly in the EV segment.
