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Malaysia Sun
2 days ago
- Automotive
- Malaysia Sun
Indian auto industry may face disruption amid China's stricter Rare Earth export controls: Report
New Delhi [India], June 10 (ANI): The Indian automobile industry is expected to face disruptions following China's decision to tighten export controls on rare earth elements (REEs), which are critical in manufacturing chips used in automobiles, according to a report by Emkay Research. The report mentioned that China, which accounts for over 70 per cent of global REE production and controls more than 90 per cent of refining capacity, imposed stricter export regulations on several REEs from April 2025, citing national security and non-proliferation concerns. The report said 'The licensing for exports has become significantly longer. These delays have led to supply uncertainty across sectors reliant on these critical inputs'. It pointed out that electric passenger vehicles (E-PVs) and internal combustion engine passenger vehicles (ICE-PVs) are the most vulnerable within the Indian auto industry. Electric vehicles (EVs), passenger vehicles (PVs), two-wheelers (2Ws), and commercial vehicles (CVs), in that order, are likely to face the maximum disruption. High-performance EV motors, teh report said, require heavy rare earth elements (HREEs) such as dysprosium and terbium to maintain efficiency at high operating temperatures. For electric two-wheelers (E-2Ws), magnets used in motors cost around Rs 150, while in PVs the cost varies from Rs 2,000 to Rs 24,000 depending on the features. However, the issue is not just about cost but the availability of these critical components and the limited options for alternative sourcing. While ICE 2Ws and 3Ws remain relatively unaffected in the short term, E-2Ws that use permanent magnet synchronous motors (PMSMs) are more vulnerable because of their limited design flexibility. As per report, while E-2Ws may undergo design changes in a short time (2-3 months), PVs and buses may require 6-12 months for complete motor redesigns due to stricter performance and space requirements. According to the Society of Indian Automobile Manufacturers (SIAM), ICE-PV production could face cuts starting July 2025, while existing E-2W inventories may last only another 1 to 1.5 months unless alternative sourcing arrangements are made. Although countries like Brazil and Australia hold substantial REE reserves, with Brazil alone having 20 per cent of global reserves, China continues to exert significant financial and operational control over many of these resources. Chinese companies also hold stakes in Brazilian mines. In addition, while Vietnam and Malaysia host some refining capacity, they largely lack access to primary raw materials and remain dependent on China. The tightening of export controls by China is likely to create ripple effects across the global supply chain, with India's auto sector bracing for a challenging period ahead. (ANI)
India Gazette
2 days ago
- Automotive
- India Gazette
Indian auto industry may face disruption amid China's stricter Rare Earth export controls: Report
New Delhi [India], June 10 (ANI): The Indian automobile industry is expected to face disruptions following China's decision to tighten export controls on rare earth elements (REEs), which are critical in manufacturing chips used in automobiles, according to a report by Emkay Research. The report mentioned that China, which accounts for over 70 per cent of global REE production and controls more than 90 per cent of refining capacity, imposed stricter export regulations on several REEs from April 2025, citing national security and non-proliferation concerns. The report said 'The licensing for exports has become significantly longer. These delays have led to supply uncertainty across sectors reliant on these critical inputs'. It pointed out that electric passenger vehicles (E-PVs) and internal combustion engine passenger vehicles (ICE-PVs) are the most vulnerable within the Indian auto industry. Electric vehicles (EVs), passenger vehicles (PVs), two-wheelers (2Ws), and commercial vehicles (CVs), in that order, are likely to face the maximum disruption. High-performance EV motors, teh report said, require heavy rare earth elements (HREEs) such as dysprosium and terbium to maintain efficiency at high operating temperatures. For electric two-wheelers (E-2Ws), magnets used in motors cost around Rs 150, while in PVs the cost varies from Rs 2,000 to Rs 24,000 depending on the features. However, the issue is not just about cost but the availability of these critical components and the limited options for alternative sourcing. While ICE 2Ws and 3Ws remain relatively unaffected in the short term, E-2Ws that use permanent magnet synchronous motors (PMSMs) are more vulnerable because of their limited design flexibility. As per report, while E-2Ws may undergo design changes in a short time (2-3 months), PVs and buses may require 6-12 months for complete motor redesigns due to stricter performance and space requirements. According to the Society of Indian Automobile Manufacturers (SIAM), ICE-PV production could face cuts starting July 2025, while existing E-2W inventories may last only another 1 to 1.5 months unless alternative sourcing arrangements are made. Although countries like Brazil and Australia hold substantial REE reserves, with Brazil alone having 20 per cent of global reserves, China continues to exert significant financial and operational control over many of these resources. Chinese companies also hold stakes in Brazilian mines. In addition, while Vietnam and Malaysia host some refining capacity, they largely lack access to primary raw materials and remain dependent on China. The tightening of export controls by China is likely to create ripple effects across the global supply chain, with India's auto sector bracing for a challenging period ahead. (ANI)
Times of Oman
06-02-2025
- Business
- Times of Oman
RBI to look for additional measures other than rate cut to infuse enough liquidity: Report
New Delhi: The Reserve Bank of India (RBI) will have to look for additional measures other than a rate cut to infuse enough liquidity in the banking system according to a report by Emkay Research. Among other options suggested by Emkay Research, includes another round of Open Market Operations (OMO) worth Rs 30,000 crore to inject liquidity into the economy. The report highlighted that the total liquidity infusion through OMO in the current financial year (FY25) could surpass Rs 90,000 crore. It said, "We expect another round of ~Rs300bn OMOs, implying Rs900 bn+ in total in FY25E. A CRR cut is a close call, but a temporary cut may not address the underlying banking stress". The report noted that a temporary CRR reduction may not effectively resolve the ongoing stress in the banking sector. Instead, the RBI needs to focus on easing upcoming tighter Liquidity Coverage Ratio (LCR) norms, which are set to take effect from April 2025. Additionally, relaxing lending standards could be a preferred policy tool to address liquidity concerns. The report suggested that while a conventional 25 basis points rate cut in the upcoming Monetary Policy Committee (MPC) meeting is not a major topic of debate in the market, investors and analysts will closely watch for additional policy measures beyond a rate cut. The central bank may continue its strategy of "easing by stealth" through unconventional policy tools, such as liquidity injections and regulatory adjustments. The RBI is also expected to take steps to address stress in the non-sovereign money market. Furthermore, the report indicated that the central bank could consider additional measures to ease capital account restrictions, possibly through the Foreign Currency Non-Resident (FCNR) route. The RBI has already taken significant liquidity-boosting measures in recent months. Despite these efforts, system liquidity remains tight. While the overall liquidity deficit has eased from a high of Rs 3.1 trillion at the end of January 2025, Emkay Research estimates that it could still remain elevated at Rs 2.5-2.8 trillion by the end of FY25. The core deficit is expected to range between Rs 1.1-1.3 trillion. If the RBI finds this level of liquidity shortfall uncomfortable for policy transmission, it may introduce additional measures to support the economy, especially as the outlook for the depth of the interest rate cut cycle remains uncertain. The market will keenly watch RBI's next policy moves, particularly in addressing liquidity constraints and banking sector stress, as these factors will play a crucial role in shaping economic conditions in the coming months.
