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India Gazette
a day ago
- Automotive
- India Gazette
Indian EV Industry being hurt by additional restrictions on rare earth minerals by China: Jefferies
New Delhi [India], June 6 (ANI): The EV companies in the country is already facing heat with China's supply restrictions on the rare earth metals, according to a report by Jefferies. The Jefferies report highlighted that several Indian companies are struggling to import magnets from China, which are crucial components in the production of EV motors. The report warned that once the current stock of these magnets runs out, motor production could be severely affected, putting the entire supply chain at risk. It said 'Based on our conversations with Indian companies, industry is facing a challenge in importing magnets from China and EV motor production could be at risk once the existing magnet inventories get exhausted'. Federation of Automobile Dealers Association (FADA) too have echoed the sentiment and in its monthly vehicle data release on Friday said 'Global supply-chain headwinds (rare-earth constraints in EV components, geopolitical tensions) may limit urban consumer sentiment and exert cost pressure.' To deal with the situation, companies are considering importing fully assembled motors from China. However, this option comes with challenges. Original Equipment Manufacturers (OEMs) would have to make major changes in their supply chains. Additionally, vehicles might require fresh homologation approvals to meet Indian standards. This shift could also lead to a drop in domestic value addition, which is essential to qualify for the government's Production-Linked Incentive (PLI) scheme. China had earlier, on April 4, imposed export controls on six heavy rare earth elements (REEs) and rare earth magnets. The country cited reasons like national security and international obligations such as non-proliferation. Although these curbs are not a complete ban on exports for the auto sector, companies must now seek prior government approval before shipping these materials out of China. This adds uncertainty and delay in the supply process. The report also mentioned that the Indian government is aware of the growing risks. According to a Reuters report on Friday, India is in discussions with various companies to build long-term stockpiles of rare earth magnets. As part of this plan, Indian government is likely to offer fiscal incentives to promote domestic production of these crucial components. Contrary to their name, rare earth elements, especially the lighter ones, are not actually rare in the Earth's crust. But they are spread out in low concentrations, which makes extraction and processing difficult. The global supply chain for these elements is heavily dependent on China, which currently accounts for about 70 per cent of the world's mined REEs and roughly 90 per cent of refined production. China also produces nearly 90 per cent of the world's rare earth magnets, especially the heavy rare earths. With China now increasing its restrictions even further, the supply chain could face more disruptions in the coming months, posing a serious threat to India's EV sector. (ANI)
Economic Times
a day ago
- Automotive
- Economic Times
Indian EV Industry being hurt by additional restrictions on rare earth minerals by China: Jefferies
Indian EV companies are facing challenges due to China's restrictions on rare earth metal exports. Importing magnets, crucial for EV motors, has become difficult. Companies might consider importing fully assembled motors, but this poses new challenges. The Indian government is exploring options like building stockpiles and offering incentives for domestic production. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The EV companies in the country is already facing heat with China's supply restrictions on the rare earth metals, according to a report by Jefferies report highlighted that several Indian companies are struggling to import magnets from China, which are crucial components in the production of EV report warned that once the current stock of these magnets runs out, motor production could be severely affected, putting the entire supply chain at risk It said "Based on our conversations with Indian companies, industry is facing a challenge in importing magnets from China and EV motor production could be at risk once the existing magnet inventories get exhausted".Federation of Automobile Dealers Association (FADA) too have echoed the sentiment and in its monthly vehicle data release on Friday said "Global supply-chain headwinds (rare-earth constraints in EV components, geopolitical tensions) may limit urban consumer sentiment and exert cost pressure."To deal with the situation, companies are considering importing fully assembled motors from China. However, this option comes with challenges. Original Equipment Manufacturers (OEMs) would have to make major changes in their supply vehicles might require fresh homologation approvals to meet Indian standards. This shift could also lead to a drop in domestic value addition, which is essential to qualify for the government's Production-Linked Incentive (PLI) had earlier, on April 4, imposed export controls on six heavy rare earth elements (REEs) and rare earth magnets. The country cited reasons like national security and international obligations such as these curbs are not a complete ban on exports for the auto sector, companies must now seek prior government approval before shipping these materials out of China. This adds uncertainty and delay in the supply report also mentioned that the Indian government is aware of the growing to a Reuters report on Friday, India is in discussions with various companies to build long-term stockpiles of rare earth magnets. As part of this plan, Indian government is likely to offer fiscal incentives to promote domestic production of these crucial to their name, rare earth elements, especially the lighter ones, are not actually rare in the Earth's crust. But they are spread out in low concentrations, which makes extraction and processing global supply chain for these elements is heavily dependent on China, which currently accounts for about 70 per cent of the world's mined REEs and roughly 90 per cent of refined production. China also produces nearly 90 per cent of the world's rare earth magnets, especially the heavy rare China now increasing its restrictions even further, the supply chain could face more disruptions in the coming months, posing a serious threat to India's EV sector.
Time of India
a day ago
- Automotive
- Time of India
Indian EV Industry being hurt by additional restrictions on rare earth minerals by China: Jefferies
The EV companies in the country is already facing heat with China's supply restrictions on the rare earth metals, according to a report by Jefferies. The Jefferies report highlighted that several Indian companies are struggling to import magnets from China, which are crucial components in the production of EV motors. The report warned that once the current stock of these magnets runs out, motor production could be severely affected, putting the entire supply chain at risk . Play Video Play Skip Backward Skip Forward Mute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track Picture-in-Picture Fullscreen 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 Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow 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. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dukung Orang Terkasih Menghadapi Limfoma: Mulai Di Sini Limfoma Baca Undo It said "Based on our conversations with Indian companies, industry is facing a challenge in importing magnets from China and EV motor production could be at risk once the existing magnet inventories get exhausted". Federation of Automobile Dealers Association (FADA) too have echoed the sentiment and in its monthly vehicle data release on Friday said "Global supply-chain headwinds (rare-earth constraints in EV components, geopolitical tensions) may limit urban consumer sentiment and exert cost pressure." Live Events To deal with the situation, companies are considering importing fully assembled motors from China. However, this option comes with challenges. Original Equipment Manufacturers (OEMs) would have to make major changes in their supply chains. Additionally, vehicles might require fresh homologation approvals to meet Indian standards. This shift could also lead to a drop in domestic value addition, which is essential to qualify for the government's Production-Linked Incentive (PLI) scheme. China had earlier, on April 4, imposed export controls on six heavy rare earth elements (REEs) and rare earth magnets. The country cited reasons like national security and international obligations such as non-proliferation. Although these curbs are not a complete ban on exports for the auto sector, companies must now seek prior government approval before shipping these materials out of China. This adds uncertainty and delay in the supply process. The report also mentioned that the Indian government is aware of the growing risks. According to a Reuters report on Friday, India is in discussions with various companies to build long-term stockpiles of rare earth magnets. As part of this plan, Indian government is likely to offer fiscal incentives to promote domestic production of these crucial components. Contrary to their name, rare earth elements, especially the lighter ones, are not actually rare in the Earth's crust. But they are spread out in low concentrations, which makes extraction and processing difficult. The global supply chain for these elements is heavily dependent on China, which currently accounts for about 70 per cent of the world's mined REEs and roughly 90 per cent of refined production. China also produces nearly 90 per cent of the world's rare earth magnets, especially the heavy rare earths. With China now increasing its restrictions even further, the supply chain could face more disruptions in the coming months, posing a serious threat to India's EV sector.
Time of India
5 days ago
- Automotive
- Time of India
High road tax, off-track fuel policies hitting revenue & vehicle sales in MP
Madhya Pradesh's high vehicle road tax is causing substantial revenue losses. The Federation of Automobile Dealers Association (FADA) has highlighted that customers in MP are purchasing vehicles from adjacent states with lower taxation rates. Ironically, despite repeated appeals to the state govt for tax reduction, no action was taken. MP is losing money on different types of vehicle sales. People who want fancy cars (costing over Rs. 20 Lakhs) are buying them in Chhattisgarh or Arunachal Pradesh. Why? Because the road tax is lower there. MP charges 16% road tax. FADA claimed that Chhattisgarh only charges 10%. Arunachal Pradesh has a fixed rate of Rs. 35,000. This difference is a big deal for expensive cars. Electric vehicles (EVs) and hybrid vehicles also have tax issues. The road tax on two-wheeler EVs in MP went up from 1% to 4%. People want the govt to bring it back down. Chhattisgarh and Uttar Pradesh have zero road tax on EVs. Chhattisgarh even gives subsidies of up to Rs. 15 Lakh on EVs and hybrid vehicles. This makes buying these vehicles much cheaper in Chhattisgarh, added FADA officials. Ambulance registrations are another problem. People prefer to register ambulances in Chhattisgarh. This is because MP charges 10% road tax on ambulances. Chhattisgarh has no road tax on them. This makes ambulances cheaper to register in Chhattisgarh. The way MP calculates road tax is also being questioned. Right now, road tax includes the GST (Goods and Services Tax). A suggestion was made to calculate the tax before GST is added. This would lower the amount of tax people pay. MP has a great location in the middle of India. This could make it a big logistics hub. The govt could offer incentives to car companies. This could help them deliver cars faster. It could also create more jobs in MP, said FADA officials. Fuel taxes are also a problem. MP has some of the highest VAT (Value Added Tax) rates on fuel in India. Because of this, truck drivers and others often fill up their tanks in other states. This means MP loses out on tax money. It also makes fuel more expensive for people who live in MP. The govt needs to take these issues seriously to "prevent tax revenue losses." It will help to "reduce the financial burden on MP's population." By fixing these tax problems, MP can keep more money in the state. FADA MP raised four crucial concerns. "These include advocating for lower road tax rates in MP, seeking a reduction in fuel VAT, highlighting MP's potential as a logistics hub due to its central location, and addressing the incorrect practice of road tax calculation on GST," said Chairperson FADA Madhya Pradesh , Ashish Pande. He added, "It's worth noting that MP's sales performance was significantly lower than the national average over the past 4 months, resulting in reduced revenue collection for the state, both in terms of GST and road tax. This needs immediate attention from the state govt." Transport department officials did not respond to the calls made to them.
Time of India
6 days ago
- Automotive
- Time of India
High road tax, off-track fuel policies hitting revenue & vehicle sales in MP
Bhopal: Madhya Pradesh's high vehicle road tax is causing substantial revenue losses. The Federation of Automobile Dealers Association (FADA) has highlighted that customers in MP are purchasing vehicles from adjacent states with lower taxation rates. Ironically, despite repeated appeals to the state govt for tax reduction, no action was taken. MP is losing money on different types of vehicle sales. People who want fancy cars (costing over Rs. 20 Lakhs) are buying them in Chhattisgarh or Arunachal Pradesh. Why? Because the road tax is lower there. MP charges 16% road tax. FADA claimed that Chhattisgarh only charges 10%. Arunachal Pradesh has a fixed rate of Rs. 35,000. This difference is a big deal for expensive cars. Electric vehicles (EVs) and hybrid vehicles also have tax issues. The road tax on two-wheeler EVs in MP went up from 1% to 4%. People want the govt to bring it back down. Chhattisgarh and Uttar Pradesh have zero road tax on EVs. Chhattisgarh even gives subsidies of up to Rs. 15 Lakh on EVs and hybrid vehicles. This makes buying these vehicles much cheaper in Chhattisgarh, added FADA officials. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like ¿Cómo obtener un segundo ingreso invirtiendo $100 con IA? [CFD] Digital Group Prueba ahora Undo Ambulance registrations are another problem. People prefer to register ambulances in Chhattisgarh. This is because MP charges 10% road tax on ambulances. Chhattisgarh has no road tax on them. This makes ambulances cheaper to register in Chhattisgarh. The way MP calculates road tax is also being questioned. Right now, road tax includes the GST (Goods and Services Tax). A suggestion was made to calculate the tax before GST is added. This would lower the amount of tax people pay. MP has a great location in the middle of India. This could make it a big logistics hub. The govt could offer incentives to car companies. This could help them deliver cars faster. It could also create more jobs in MP, said FADA officials. Fuel taxes are also a problem. MP has some of the highest VAT (Value Added Tax) rates on fuel in India. Because of this, truck drivers and others often fill up their tanks in other states. This means MP loses out on tax money. It also makes fuel more expensive for people who live in MP. The govt needs to take these issues seriously to "prevent tax revenue losses." It will help to "reduce the financial burden on MP's population." By fixing these tax problems, MP can keep more money in the state. FADA MP raised four crucial concerns. "These include advocating for lower road tax rates in MP, seeking a reduction in fuel VAT, highlighting MP's potential as a logistics hub due to its central location, and addressing the incorrect practice of road tax calculation on GST," said Chairperson FADA Madhya Pradesh, Ashish Pande. He added, "It's worth noting that MP's sales performance was significantly lower than the national average over the past 4 months, resulting in reduced revenue collection for the state, both in terms of GST and road tax. This needs immediate attention from the state govt." Transport department officials did not respond to the calls made to them.
