Latest news with #India-bound
Time of India
3 days ago
- Automotive
- Time of India
Magnet crisis: Auto giants rush to China for rare earth rescue
The Indian automotive industry is preparing to send a high-level delegation to China next week to address escalating concerns over delays in rare earth magnet imports, people familiar with the development said. They noted that China's new export restrictions on rare earth materials, effective April 4, have created procedural bottlenecks, resulting in delayed shipments to Indian manufacturers. Several consignments of India-bound rare earth magnets - critical for electric motors and various automotive components - are reportedly stuck at Chinese ports, raising fears of production disruptions as early as the first week of June. A joint delegation from the Society of Indian Automobile Manufacturers (Siam) and the Automotive Component Manufacturers Association (ACMA) will meet with senior Chinese government officials to expedite necessary clearances and restore the flow of shipments, people cited above said. India's commerce and external affairs ministries are currently coordinating with their counterparts in Beijing through the Indian embassy to facilitate the meetings. "The situation is serious, but we are receiving strong support from the government. We are hopeful of an early resolution," said Vinnie Mehta, director general of ACMA. China accounts for an estimated 70-80per cent of global rare earth processing and over 90per cent of rare earth magnet production, making automakers heavily dependent on imports from the country. Automakers and component suppliers warn that further delay in getting the magnets could severely impact vehicle production, especially in the electric mobility segment. "The rare earth situation is a very difficult one," Rakesh Sharma, executive director at Bajaj Auto , said during the company's recent earnings call. He flagged the "onerous" approval process that currently involves multiple certifications from Indian ministries, the Chinese embassy, and Chinese provincial authorities. While the supply crunch poses a serious challenge, some players have begun diversifying their sourcing strategy. JBM Group, a leading electric bus manufacturer, has started procuring rare earth magnets from other Asian countries. "Post-pandemic, we undertook a comprehensive risk assessment that led us to explore alternative supply bases beyond China," said Nishant Arya, vice-chairman of JBM Group. With inventory levels depleting rapidly, Siam and ACMA have been in active dialogue with the commerce ministry. As reported by Reuters on May 29, Siam informed government officials that component makers' inventories could run out by the end of May and urged intervention at the highest level, including from the Prime Minister's Office. Representatives from major OEMs and suppliers, particularly those involved in motor manufacturing, are expected to be part of the industry delegation headed for China.
Time of India
3 days ago
- Automotive
- Time of India
Magnet crisis: Auto giants rush to China for rare earth rescue
The Indian automotive industry is preparing to send a high-level delegation to China next week to address escalating concerns over delays in rare earth magnet imports, people familiar with the development said. They noted that China's new export restrictions on rare earth materials, effective April 4, have created procedural bottlenecks, resulting in delayed shipments to Indian manufacturers. Several consignments of India-bound rare earth magnets - critical for electric motors and various automotive components - are reportedly stuck at Chinese ports, raising fears of production disruptions as early as the first week of June. A joint delegation from the Society of Indian Automobile Manufacturers (Siam) and the Automotive Component Manufacturers Association (ACMA) will meet with senior Chinese government officials to expedite necessary clearances and restore the flow of shipments, people cited above said. India's commerce and external affairs ministries are currently coordinating with their counterparts in Beijing through the Indian embassy to facilitate the meetings. "The situation is serious, but we are receiving strong support from the government. We are hopeful of an early resolution," said Vinnie Mehta, director general of ACMA. China accounts for an estimated 70-80% of global rare earth processing and over 90% of rare earth magnet production, making automakers heavily dependent on imports from the country. Automakers and component suppliers warn that further delay in getting the magnets could severely impact vehicle production, especially in the electric mobility segment. "The rare earth situation is a very difficult one," Rakesh Sharma, executive director at Bajaj Auto , said during the company's recent earnings call. He flagged the "onerous" approval process that currently involves multiple certifications from Indian ministries, the Chinese embassy, and Chinese provincial authorities. While the supply crunch poses a serious challenge, some players have begun diversifying their sourcing strategy. JBM Group, a leading electric bus manufacturer, has started procuring rare earth magnets from other Asian countries. "Post-pandemic, we undertook a comprehensive risk assessment that led us to explore alternative supply bases beyond China," said Nishant Arya, vice-chairman of JBM Group. With inventory levels depleting rapidly, Siam and ACMA have been in active dialogue with the commerce ministry. As reported by Reuters on May 29, Siam informed government officials that component makers' inventories could run out by the end of May and urged intervention at the highest level, including from the Prime Minister's Office. Representatives from major OEMs and suppliers, particularly those involved in motor manufacturing, are expected to be part of the industry delegation headed for China.
Hindustan Times
23-05-2025
- Automotive
- Hindustan Times
India-bound Dacia Bigster scores three stars in Euro NCAP crash tests
The Dacia Bigster was equipped with several safety features, including airbags, ISOFIX mounts, autonomous emergency braking, lane assist, driver attention warnings, and more. Notify me The Euro NCAP has recently published the crash test results for the Dacia Bigster. The India-bound SUV has scored a three-star safety rating, with an adult occupant safety score of 69 per cent and a child occupant safety score of 85 per cent. In vulnerable road uses, the Bigster scored 60 per cent, while in safety assist, its score was 57 per cent. The model that was tested was equipped with a HEV powertrain and was a left-hand drive model. The safety rating is applicable to all Dacia Bigster models that are available on sale. The safety features available on the Bigster model include airbags, ISOFIX mounts, seatbelt reminders, autonomous emergency braking, speed assistance, lane assist system, driver attention warnings, and more. Also Read : India-bound Volkswagen Tayron scores 5 stars in Euro NCAP crash test During the frontal offset test, the passenger compartment was observed to remain stable. Dummy measurements indicated effective protection for the knees and femurs of both the driver and front seat passenger. A similar level of protection is expected for occupants of different sizes and sitting in different positions. An analysis of the deceleration of the impact trolley during the test, alongside an examination of the deformable barrier after the test, indicates that the Bigster is relatively non-aggressive to other vehicles during a frontal collision. Check out Upcoming Cars in India 2024, Best SUVs in India. First Published Date: 23 May 2025, 12:11 PM IST
Yahoo
23-05-2025
- Business
- Yahoo
BGMEA Seeks 3-Month Delay for India's Land Port Ban on Garment Exports
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has called on India to allow for a three-month reprieve on its abrupt ban on the entry of Bangladeshi garment exports via its land ports. The association is urging Bangladesh's interim government to send a formal letter to the Indian government on their behalf, which would request for a three-month 'notification period' that would give ample time to clear the pending backlog of garments that are already set to be exported to India. More from Sourcing Journal Bangladesh, US Engage in Free Trade Agreement Talks US Ports Warn of $6.7B Bill if 100% Tariff on China-Made Cranes Kicks in India Ends Land Port Entry for Bangladeshi Garment Imports Many India-bound shipments have been waiting to be unloaded at the land ports since Saturday, when the restrictions were put in place. In an interview with Bangladesh publication The Daily Star, Asif Ashraf, a former vice president of the BGMEA, said exporters were not prepared for such a sudden ban, and are now concerned about financial impacts to their business on the shipping delays. On Tuesday, Bangladesh's commerce ministry held an inter-ministerial meeting in Dhaka with stakeholders and government officials to discuss a response to India's restrictions. 'We will not take any retaliatory steps. They've taken this step, and we will engage with them,' Commerce Secretary Mahbubur Rahman told reporters after the meeting. Rahman mentioned that a meeting at the secretary level between the two countries is being considered to resolve the issue. 'We will point out that not only Bangladeshi businesses are being affected, Indian businesses will also suffer. So, let's sit together and find a solution,' said Rahman. 'We have an established secretariat-level forum with India. Last week, we sent a letter requesting a meeting. Once we receive a response, we'll know when it can be held.' According to the BGMEA, readymade garment (RMG) exports to India reached $563 million in the first 10 months of the current fiscal year. The association says 93 percent of the garments shipped from Bangladesh to India goes through land ports. The move to block entry to RMGs, as well as limit other exports like processed foods, plastic goods and wooden furniture, will impact 42 percent of India's total inbound trade from Bangladesh, according to a report from New Delhi-based Global Trade Research Initiative. The land port ban was an apparent escalation of a series of supply chain restrictions the countries have placed on each other in recent months. In February, India implemented a 20 percent import tariff on nine varieties of knitted fabrics from Bangladesh. Two months later, the country revoked Bangladesh's access to its transshipment services, which prevents Bangladeshi exporters from shipping cargo via Indian land borders and customs stations. That service, first established in 2020, allowed Bangladeshi businesses to use Indian airports and seaports to send goods to third countries. Bangladesh has since opened a new air cargo hub at one of its major airports to pick up the slack. Bangladesh also put up some of its own supply chain barriers, clamping down on foreign imports of yarns via its land ports. Yarns can still be imported via seaports and airports, but textile mills had claimed the land ports didn't have the required infrastructure to properly vet raw materials. According to the Bangladesh Textile Mills Association, 95 percent of yarn imports come from India. In April, other imports from India including rice were restricted through the land ports, while goods like paper, tobacco and powdered milk got banned outright. Bangladesh's tit-for-tat with India comes as the south Asian country still is trying to maneuver through trade negotiations with the U.S. after the Trump administration's imposition of country-specific tariffs on April 2. Both countries agreed in principle to start Free Trade Agreement (FTA) talks this week, Rahman said. Currently, Bangladesh has a 10-percent tariff placed on all goods it exports to the U.S., but that total could hike to 37 percent—or nearly 53 percent on apparel—if a new deal isn't reached by July 9. As part of a potential deal, Bangladesh's government is considering removing import tariffs on about 100 products it brings in from the U.S. In accordance with World Trade Organization rules, the removal would apply to all countries Bangladesh imports from. These products reportedly range from raw materials for readymade garments, as well as man-made fibers and wool. They would also include items like machinery, effluent treatment plants, dialysis filters, fire extinguishers and certain arms, according to a report from Bangladesh publication The Business Standard. Officials from the National Board of Revenue (NBR) told the publication that the plans were discussed during a meeting with Chief Adviser Muhammad Yunus ahead of the upcoming fiscal year budget. In 2024, Bangladesh imported goods worth $2.2 billion from the U.S., while exporting $8.4 billion, making the U.S. Bangladesh's largest export market.
Yahoo
19-05-2025
- Business
- Yahoo
India Ends Land Port Entry for Bangladeshi Garment Imports
India has imposed restrictions on Bangladesh's readymade garments (RMGs) from entering the country via its land ports, forcing the latter's exporters to rely on longer, more expensive shipping routes. Bangladeshi cotton and cotton yarns, as well as items such as processed foods, plastic goods and wooden furniture, will no longer be allowed through six land ports in northeast India, under certain restrictions imposed by Directorate General of Foreign Trade Saturday. More from Sourcing Journal Ocean Carriers Levy Surcharges, Cut Pakistan Port Calls Amid India Trade Embargo Maersk Expects No Cost Impact From Port Fees, Assures 'Unchanged' Service Tariffs Tank China's US Exports, but Southeast Asia and India Cash In Garments will be allowed to enter India only through the Nhava Sheva and Kolkata seaports, according to the notification. According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), in the first 10 months of the current fiscal year, RMG exports to India have already reached $563 million. A whopping 93 percent of cargo shipped goes through land ports. 'Land ports provide easy access for various goods. Shipping through seaports will take significantly more time,' BGMEA administrator Anwar Hossain told Bangladesh publication The Business Standard. 'We are currently consulting with exporters to understand the full impact. Once that's assessed, we'll approach the relevant authorities to seek solutions and explore alternative channels.' Exporters rerouting goods through Kolkata would require the cargo to travel roughly 1,200 kilometers via road or rail to reach other northeastern cities closer to the Bangladesh-India border. While sending goods through land routes to India typically can take one-to-three days, the sea routes would take two weeks. According to a report from another Bangladesh publication, The Daily Star, hundreds of trucks carrying India-bound goods were stuck at land ports or forced to leave without dropping off goods in the wake of the directive. At Benapole, the largest land port in Bangladesh, at least 36 trucks carrying ready-made garments were stranded on Sunday. Bangladeshi Garment exporter Energypac Fashions Ltd reported three containers of formal suits and pants worth over $300,000 were stuck at Benapole. India's government likely made the decision to help open more opportunities for the country's expanding domestic textile sector, and curb the indirect entry of Chinese fabrics routed through Bangladesh. According to India's National Textile Committee, the policy could generate between 1,000 and 2,000 crore Indian rupees, or between $117 million and $234 million. Indian textile stocks surged early Monday on the news, with Siyaram Silk Mills jumping more than 8 percent and Kitex Garments and Raymond Limited increasing 5 percent. Under India's commerce ministry, the directorate implemented the trade policy shift in another escalation of tensions between the two countries since Bangladeshi Prime Minister Sheikh Hasina was ousted last summer. Hasina is currently residing in India under self-imposed exile, with the Bangladesh government seeking her extradition. India has yet to comply with the request. The restrictions will not apply to Bangladeshi exports to Nepal and Bhutan transiting to India. Additionally, imports of fish, liquefied petroleum gas, edible oil and crushed stone from Bangladesh can still pass freely through Indian land ports. The move to impose entry to RMGs and the other exports will hit 42 percent of India's total inbound trade from Bangladesh, affecting $770 million in product, according to a report from New Delhi-based Global Trade Research Initiative (GTRI) released Sunday. Readymade garments are valued at $618 million, the report calculated. India and Bangladesh have both imposed supply chain restrictions on each other in recent weeks amid the growing tensions. In April, India revoked Bangladesh's access to transshipment services, which allowed the latter to export goods via India's land borders and customs stations. Bangladeshi exporters used the service to ship goods out of India's airports and seaports, with Indian exporters urging the government to end the service to the congestion that had built up. Bangladesh had implemented some barriers of its own, halting foreign yarns from being imported into its own land ports in a move that pleased textile mills but frustrated apparel exporters in the country. Bangladesh orders roughly 45 percent of India's total cotton yarn exports. The country also restricted rice imports from India through the same land routes last month, and placed bans on paper, tobacco, fish and powdered milk imports. GTRI founder Ajay Srivastava said in the report that the cumulative actions, along with operational delays and tightened port inspections, have hampered Indian exporters and triggered calls for a 'calibrated response.' 'Top global brands like H&M, Zara, Primark, Uniqlo and Walmart source apparel from Bangladesh, some of which enters India's domestic market,' said Srivastava. 'Indian manufacturers have long expressed concern over the uneven playing field: they pay a 5 percent GST on locally sourced fabric, while Bangladeshi firms import fabric duty-free from China and receive export incentives for sales to India—giving them an estimated 10–15 percent price advantage.' India implemented a 20 percent import tariff on nine varieties of knitted fabric in February to control flooding of cheap textiles apparel into country—namely from China.
