China makes shocking move against India, decides to stop supply of…, set to affect India due to….
China has imposed control on rare earth magnets which has created several challenges for Indian automobile companies. Existing stocks are expected to last only until early June, it can create serious problems and disruptions in the vehicle production industry.
Indian automobile manufacturers are getting delays in the supply of rare earth magnets. After China's major export regulations there was a delay in shipment for these components. Manufacturers have already warned that if supplies do not go normal then it can impact vehicle production.
According to a media report, to address this issue, a delegation from the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Component Manufacturers Association (ACMA) is preparing to travel to China to talk with Chinese officials. The Indian government is also trying to resolve the matter diplomatically.
Neodymium-iron-boron (NdFeB) magnets are important for electric and conventional vehicles. These magnets are used in systems of motors and steering, brakes, wipers, and audio equipment. Even a minor shortage of these magnets affects assembly lines. China's Hold On Earth Magnets
90% of the world's rare earth magnets are produced by China. China asked exporters to take government licenses and detailed end-use certificates from buyers before shipping. Due to these new rules the approval process has slowed down.
According to the Economic Times , many consignments for India are stuck at Chinese ports after this rule. However many European companies could get export approvals, but Indian goods are stuck in the country.
India imported 460 tons of rare earth magnets from China in the last fiscal year. Now India does not have any other option which can support countries' production lines.
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