Supply uncertainty of rare earth magnets from China could weigh auto industry: ICRA
New Delhi [India], : 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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Standard
an hour ago
- Business Standard
EUR/USD off 44-month high ahead of key data
Euro has slipped a little today against the US dollar after recording awesome gains that took EUR/USD pair to a 44-month high of 1.1660. Some cautiousness was seen ahead of industrial production and foreign trade from the euro area. The US dollar saw some bargain buying too as global tensions escalated after Israel launched Operation Rising Lion, targeting Iranian nuclear and missile sites. US dollar index is off a three-year low and quotes around 97.70 mark. EUR/USD pair is up around 2% this week, recording a continued sharp upturn after falling near 1.1000 mark in the middle of last month. On the NSE, EUR/INR futures are quoting at 99.60, up 0.24% on the day after witnessing continued support around 99.20-99.40 zone.
Time of India
an hour ago
- Time of India
Fidelity marks up Lenskart valuation to $6.1 billion
A fund managed by US-based financial services major Fidelity has marked up the valuation of omnichannel eyewear retailer Lenskart to USD 6.1 billion. This is a 21 per cent increase of the company's fair value in its books compared to the USD 5 billion valuation at which it acquired the shares. According to a monthly portfolio holdings update published by Fidelity, the latest valuation for Lenskart is as of April 30. Crossover funds such as Fidelity, which invest in both publicly traded and privately held companies, periodically review the valuation of their portfolio companies. The fair value is ascertained on the basis of a number of factors, including financials shared with investors, market conditions and the performance of comparable peers. Gurugram-based Lenskart is considering a USD 1 billion public offering at a potential USD 10 billion valuation, double that of its last funding round, ET had reported earlier. Earlier this month, Lenskart converted itself into a public company as it prepares for a public listing, changing its registered name from Lenskart Solutions Private Limited to Lenskart Solutions Limited through a special resolution passed by its shareholders. The company closed a USD 200 million secondary round last June at a USD 5 billion valuation, with investments from Singapore's sovereign fund Temasek and US financial services giant Fidelity. In July 2024, Lenskart founders Peyush Bansal , Neha Bansal, Amit Choudhary, and Sumeet Kapahi had invested almost USD 20 million in the company. Prior to this, in a March 2023 round, Lenskart had raised USD 600 million from Abu Dhabi Investment Authority and ChrysCapital. Of this, USD 450 million was a secondary share sale, which allowed existing investors such as SoftBank and Chiratae Ventures to partially sell their stake in the company. This round had valued Lenskart at USD 4.5 billion. Lenskart bagged the top honour at The Economic Times Startup Awards 2024. It was named the Startup of the Year by an elite jury for its success in building a fast-growing, large-scale omnichannel consumer retail venture while creating an entirely new category. In FY24, Lenskart's net loss shrank to Rs 10 crore from Rs 64 crore in FY23, which the company attributed to technology-driven operational efficiencies. Operating revenue rose 43 per cent to Rs 5,428 crore, while earnings before interest, taxes, depreciation, and amortisation (Ebitda) more than doubled to Rs 856 crore. The company is yet to file financial statements for fiscal year 2025 with the Registrar of Companies.
Time of India
an hour ago
- Time of India
Plus-size clothing retailer to close nearly 180 stores across US this year
Plus-size clothing retailer Torrid says it may close up to 30 per cent of its retail locations--close up to 180 underperforming stores-- this year as the company aims to reduce fixed costs and reinvest in long-term growth. The announcement came during a recent earnings report issued June 5. Torrid CEO, Lisa Harper said 70 per cent of the company's total demand is now coming from online shopping. The brand is known for direct-to-consumer apparel, intimates, and accessories for women sizes 10 to 30. Torrid to shut multiple stores in US Founded in 2001, clothing brand Torrid targets younger demographic of plus-size consumers and over the years, it has evolved into a standalone brand with more than 600 stores across the United States, the brand's website reveals. Torrid offers trendy and professional clothing designed exclusively for plus-size women. The store closures are a part of Torrid's move to a more digital-forward approach, the June 5th report said. Torrid CEO Lisa Harper said in a news release the retailer experienced a nearly 5 per cent decrease in first quarter sales compared to 2024. Since January, Torrid has already closed two locations, making the chain's total store count 632. Torrid debuted its first New York Fashion Week collection in 2017. "We're accelerating our transformation to a more digitally led business, which includes optimizing our retail footprint," Harper said. As of June 10, Torrid has not shared which locations would be closing. Torrid did not immediately respond for comment about the closures when contacted by USA TODAY. Torrid posted a net sales decrease of 4.9 percent in its first-quarter earnings report and it fell from USD 279 million for the first quarter of last year to USD 266 million this year. The company also reported a net loss of USD 7.3 million, compared to a USD 11.8 million profit during the same period in 2024. The closures "better align our current demand and sales channels," the report said. "We remain in a strong financial position and are executing with clarity and focus," Harper said. "I'm incredibly proud of our team's commitment to delivering innovative product, deepening customer connections, and building a more agile, resilient business for the future." Christine Murphy, who has advocated online for the plus-size clothing industry since 2016, told USA TODAY that she was "devastated" to learn of the store closures. She said "a good chunk" of her closet is from Torrid, not out of choice, but because it's one of the only remaining brick-and-mortars that offers her size. Despite the closures, the company reported first-quarter results that met expectations. Torrid reaffirmed its full-year 2025 outlook, anticipating net sales between USD 1.030 billion and USD 1.055 billion. While store closures are planned for the year, the timeline for winding down operations remains uncertain.
