Maruti Suzuki says no immediate hit from China curbs on magnet exports
Maruti Suzuki, India's top-selling carmaker, said on Monday there is no immediate production impact from China's export curbs on rare earth magnets, a key component, and it is in talks with the government on the matter.
Auto industry manufacturers told government officials last week production could stall within days due to the curbs, Reuters reported.
They are worried by the complexity of a new import process requiring approval from Indian and Chinese officials and documents including end-use certificates stating the magnets are not for military purposes.
When asked how many weeks of inventory Maruti has before production is impacted, the automaker said it has submitted an import application and it would be difficult to comment or give "very specific details" until it receives a response.
"It is not a restriction. It is an endorsement of end use. In case there is an issue, we will . inform all our stakeholders, including the stock exchange," Rahul Bharti, senior executive director corporate affairs, told reporters.
China controls more than 90% of global processing capacity for the magnets, which are used in fields as varied as automobiles, home appliances and clean energy. It enacted measures in April requiring companies to obtain import permits.
In a meeting with commerce ministry officials last month, the Society of Indian Automobile Manufacturers said inventories at parts makers were likely to run out by the end of May.
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Daily Maverick
7 hours ago
- Daily Maverick
After the Bell: Who's afraid of losing Agoa?
One of the great risks of the debate around Agoa is that it gives us something else to blame, when we should blame ourselves for our poor economy. And we must remember that it is not true that there is no cost to us from Agoa. One of the most boring discussions I've heard around our economy over the past five years has been posed as 'will we keep Agoa?' I hear it everywhere, even now, when US President Donald Trump has made it clear that he wants to tear up the entire trade rule book. I can understand why we keep hearing about it. There are certain sections of our economy that really benefit from it. Because of Agoa (the African Growth and Opportunity Act), they have been able to grow and employ people. And some of the arguments they can make about why Agoa matters to us are important. Free market access to the US is great for the car industry, and for our farmers. It means they are exporting goods produced here, earning dollars in return and basically importing jobs. People are employed, their kids are kept in good schools. You could argue that the entire community around Daily Maverick journalist Estelle Ellis and the rest of the Baywatch team will be badly hit if it all comes to an end. And that would be true. Farmers, too, had a bumper season exporting to the US in the first quarter of the year. They were able to increase the amount of goods they sent there dramatically in that quarter. When I first heard that, I thought, perhaps, like the Chinese (and I'm sure others), they had been rushing goods into US ports before new tariffs could come into effect. But that amazing agricultural economics guru Wandile Sihlobo told me on The Money Show on Monday night that this is not the case. It happened because our farmers have created a strong demand for their goods. And, like our car industry, we are basically importing jobs. But we should be aware that, despite these very loud and important voices in our national debate, this is not the end of the story. The Brookings Institute estimated nearly 18 months ago that 'In total, a loss of Agoa benefits would lead to a GDP decline of just 0.06%'. To put that into context, our GDP grew by just 0.1% in the first quarter of this year. At the same time, the South African Reserve Bank has generally said that load shedding was costing our GDP 2% every year. So it may matter, but only in the context of our complete inability to take action to grow our own economy. One of the great risks of this debate around Agoa is that it gives us something else to blame, when we should blame ourselves for our poor economy. And we must remember that it is not true that there is no cost to us from Agoa. In fact, a few weeks ago I was almost taken aback when an American investor (one of those wonderful people who travels the world, and is hugely interested and fascinated by it) asked me point-blank: 'Why do you all care so much about Agoa?' He even suggested that actually it went against our interests. This is because of some of the small print. If you look at the text of the Act that passed through the US Congress, the conditions of eligibility are designed to literally create African economies in the US mould. Of course, as we were so often reminded during the Lady R saga, it says that you must 'not engage in activities that undermine United States national security or foreign policy interests'. This is a wonderful stick for the US to beat us with. If it wants, it could define our opposition to Israel's genocidal war on the people of Gaza as 'undermining' US 'foreign policy interests'. To be clear, there is much in Agoa that is good. It mentions that workers must be protected, that there should be political freedom and things like that. But it is still a tool of foreign policy. Yes, Agoa is helping African countries to develop. But it is also a useful instrument of control. Agoa looks finished anyway. In reality, the US system of government appears to be giving Trump whatever he wants. So far, very few Republicans have spoken against his tariff policies. But the markets are speaking. And the fact that the bond markets have forced Trump to basically chicken out has given us the wonderful phrase Taco (Trump always chickens out). So, I do think we need to be less afraid of him. He is slowly being revealed as all bark and very little bite. What we really need to do is to find Americans who lose out if we cannot export to the US. The US citrus industry, for example, needs our oranges to keep the market interested in oranges during their non-growing season. And we should not forget those strange people who drive BMW X3s. The models sold in the US are only made here. And even if they are rubbish cars (who can forget Jeremy Clarkson having to throw the sound guy out of the car to go and push, even now it's still worth watching), there is still a lobby for them in the US. I think we need to stop worrying so much about Agoa.
IOL News
11 hours ago
- IOL News
SARS imposes provisional anti-dumping duties on tyres from Vietnam, Thailand and Cambodia
The newly imposed dumping duty stands at 41.47% on all exporters not specifically named in the Government Gazette, effective for a six-month period from late May to late November 2025. Image: Jason Boud The South African Revenue Service (SARS) has implemented provisional anti-dumping duties on new pneumatic tyres imported from Vietnam, Thailand, and Cambodia as of 29 May 2025. This action comes after an anti-circumvention investigation initiated by the International Trade Administration Commission (ITAC), responding to concerns that Chinese tyre manufacturers were evading existing tariffs by distributing products through affiliates in Southeast Asia, a practice often referred to as "country hopping." The newly imposed dumping duty stands at 41.47% on all exporters not specifically named in the Government Gazette, effective for a six-month period from late May to late November 2025. This measure targets various tyre types categorised under specific tariff subheadings including motor car tyres and bus and lorry tyres. This situation stems from a prior investigation launched by ITAC in 2022, prompted by an application from the South African Tyre Manufacturers Conference (SATMC). The findings of that inquiry revealed that dumping practices were inflicting material harm on local tyre manufacturers, leading to the imposition of anti-dumping duties as high as 41% on non-cooperating Chinese exporters. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Those producers that complied with the investigation were granted reduced duties ranging from 7% to 15%. However, in the aftermath of these duties, imports of tyres from Thailand, Vietnam, and Cambodia surged. SATMC accused Chinese exporters of circumventing the imposed duties by routing their products through entities in these countries. Responding to these allegations, ITAC initiated an anti-circumvention investigation, uncovering substantial operational ties between Chinese tyre manufacturers and their affiliated companies in Southeast Asia. According to evidence presented during this investigation, the companies identified as both dumping and circumventing the regulations include Sentury Tire, Huayi Group, Prinx Chengshan, and Linglong, among others based in Thailand and Vietnam. Notably, a few exporters such as Vietnam Cofo, Firemax (Cambodia), and Haohua (Vietnam) were not found guilty of either dumping or circumvention. The South African Tyre Manufacturers Conference (SATMC) told Business Report that they welcome the anti-dumping duties. SATMC said, "According to ITAC's preliminary report, there is evidence that there was circumvention taking place in the form of country hopping and that there was dumping into the SACU region in the period reviewed. The provisional duties will be in place for the next six months and the SATMC believes that this is a strong move to address the unfair trade of tyres in South Africa. It is also a bold step to protect not only the local producers namely, Bridgestone, Continental, Goodyear and Dunlop Tyres, but also to ensure fair trade for the compliant importers." "The ITAC investigation will now continue with its Final Investigation Phase, during which ITAC will study all interested parties' comments and verify information that was submitted, before concluding the investigation. SATMC and its members remain committed to the country and maintaining a sustainable future for the tyre industry in SA," SATMC further said. For those impacted by these provisional duties, the next steps are crucial. According to evidence presented during this investigation, the companies identified as both dumping and circumventing the regulations include Sentury Tire, Huayi Group, Prinx Chengshan, and Linglong, among others based in Thailand and Vietnam. Image: These measures will remain in effect while ITAC finalizes its investigation, with a possibility of establishing definitive duties that could remain for up to five years. Importers, particularly those sourcing tyres from Southeast Asia, are urged to closely evaluate their risk exposure, mindful of the potential for significant penalties issued by SARS for misinterpretations of anti-dumping duty applications. As the situation unfolds, interested parties have until 12 June 2025, to respond to ITAC's preliminary determinations. Those wishing to represent their views directly to the Commission must submit requests for oral hearings by 25 July 2025. With this ongoing investigation and potential long-term implications for trade and industry, stakeholders in the South African tyre market are urged to stay informed and proactive.
TimesLIVE
12 hours ago
- TimesLIVE
VW's Wolfsburg plant may move to four-day week from 2027
Volkswagen's restructuring of its Wolfsburg plant from 2027 to make way for EV-only production could result in a temporary four-day working week at the plant, works council chief Daniela Cavallo told workers on Tuesday. Cavallo, a central figure in negotiations with management last year over cost cuts, said unions had agreed to minimum capacity utilisation for the transition period, but urged workers to take extra shifts in the run-up to compensate for the likelihood of fewer working hours in years to come. 'We have to make provisions now so that we can draw on them later ... From 2027 onwards, a temporary four-day week is not an unreasonable scenario,' Cavallo said. Volkswagen's deal struck with unions last December to cut costs in Germany included moving production of the combustion-engine Golf from Wolfsburg to Mexico from 2027, prompting concern among some employees at the carmaker's headquarters over the future of the plant. Cavallo sought to assure workers on Tuesday that the plant's future was in safer hands via plans to produce the electric Golf, as well as a successor to its T-Roc compact SUV by the end of the decade, pointing to the steady decline in demand for the combustion engine version of the iconic VW car. Golf production in Wolfsburg had declined from more than a million in 2015 to just more than 300,000 in 2024, a graph compiled by the works council and seen by Reuters showed, with just 250,000 cars forecast for this year. 'The trend is an unstoppable decline ... the Golf must go to Mexico! Sooner or later. Otherwise, our plant will eventually find itself at the bottom of these statistics I just showed,' Cavallo said, according to comments published on the company intranet and seen by Reuters.
