Latest news with #SIAM
India.com
2 days ago
- Automotive
- India.com
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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Business Standard
2 days ago
- Automotive
- Business Standard
Rare earth supply squeeze likely to hit India's EV boom, say experts
China controls 92 per cent of global REM magnet production, with other players like Japan (7 per cent) and Vietnam (1 per cent) contributing marginally premium Anjali Singh Shine Jacob Mumbai/Chennai Listen to This Article China's new export restrictions on rare earth materials (REM), which took effect on April 4, are already causing delays in supply to Indian automotive manufacturers and are expected to cause production disruptions—especially for electric vehicles—as the original equipment manufacturers in the country have inventories sufficient for only six to eight weeks, say industry experts. However, sources reveal that the request by a joint delegation comprising representatives from the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Component Manufacturers Association (ACMA) to meet senior Chinese government officials to raise concerns over the situation is yet to be cleared by the
Economic Times
5 days ago
- Automotive
- Economic Times
A China move risked leaving Indian car production dead in its tracks
India's auto manufacturing faced a severe threat from China's sudden export restrictions on rare earth magnets, putting the country's car production at risk of coming to a complete halt within days, according to company executives and industry documents seen by Reuters. These magnets are vital components used not only in electric vehicle motors but also in everyday car parts like power windows and audio systems. However, ET had reported citing sources that imports of permanent magnets used in cars and other electronics from China have likely resumed after India began issuing certificates assuring compliance with China's export curbs. Officials said the Directorate General of Foreign Trade (DGFT) has issued around 30 certificates, one for each consignment, confirming that these permanent magnets would not be used for defence applications nor re-exported to the United States. Industry insiders had warned that a production stoppage remained imminent with the curbs by Chna. Reuters reported, citing company executives and documents from industry groups, that inventories of rare earth magnets held by auto part makers were expected to run out by the end of May. The Society of Indian Automobile Manufacturers (SIAM) urged the government to intervene and lobby Beijing to ease restrictions, warning of a looming crisis in the world's third-largest car controls more than 90% of the global processing capacity for these magnets, which are essential not only for electric vehicle motors but also for traditional car components like power windows and audio speakers. Beijing introduced the export restrictions in April as a response to U.S. President Donald Trump's tariffs, requiring companies to obtain import permits from Chinese authorities. While the curbs primarily target high-performance magnets, shipments of low-end magnets have also been held up amid confusion over how the new rules should be implemented. In a meeting with commerce ministry officials on May 19, SIAM presented an internal document stating, 'Starting end May or early June, auto industry production is expected to come to a grinding halt.' The meeting included executives from Maruti Suzuki, Mahindra & Mahindra, and Tata Motors. Though some Chinese magnet producers, including suppliers to Volkswagen, have had their exports cleared, three auto industry executives told Reuters they fear that strained India-China relations could delay approvals, worsening the supply bottleneck. These executives requested anonymity due to the sensitivity of the asked about the export restrictions' impact on India, China's embassy in New Delhi said it was 'actively facilitating and streamlining compliant trade' according to legal and regulatory requirements. The embassy added, 'China's lawful imposition of export controls on these items aims to better safeguard national security and interests.'The import process for these magnets is complex, requiring approval from Indian ministries and the submission of 'end-use certificates' to prove the magnets will not be used for military purposes. These documents must be verified by the Chinese embassy in New Delhi and forwarded to the Chinese suppliers, after which Beijing issues the export licence. The SIAM document said India should approve import applications 'within hours' and pressure Chinese authorities to expedite licences 'on an urgent basis.'China's exports of permanent magnets fell 51% year on year to 2,626 tons in April, the first month data was available after the export curbs took effect, according to customs imported 460 tons of rare earth magnets, mostly from China, in the fiscal year ending March 31 and expects to bring in 700 tons valued at $30 million this year, according to industry and ACMA warned in a separate document submitted to the Indian government, 'Though the cost of imported rare earth magnets is minuscule in vehicles, risk is vehicles cannot be manufactured even if we are short of one component.'
India.com
5 days ago
- Automotive
- India.com
Big concern for India's auto industry as Pakistan's friend China bans export of...
China has reportedly banned exports of rare-earth magnets to India. (File) In a major move that could bring India's auto industry to a grinding halt, China has reportedly banned the export of rare earth magnets post Operation Sindoor in which Pakistan, Beijing's 'all-weather ally' suffered a crushing defeat in the recent military conflict with India. According to a media report, China has demanded assurances from the Indian government that these magnets will not be used in defense manufacturing, or re-exported to the US via India. Quoting sources, a report by ET said that the export of permanent magnets other electronic goods from China has resumed after assurances from the Indian side. As per officials, the Directorate General of Foreign Trade (DGFT) has issued 30 certificates, one for each consignment of rare earth magnets, which are used in electric vehicles (EVs), as well as electronic systems in regular cars. Earlier, industry insiders had warned that China could halt exports of rare earth elements to India. A Reuters report, citing documents from company officials and industry groups, had warned that that auto-parts makers would run out of stocks of rare earth magnets by the end of May. India automakers seek govt intervention In a statement, the Society of Indian Automobile Manufacturers (SIAM) had urged the Indian government to intervene in the matter, citing the danger of a major crisis hitting the world's third-largest car market if the supplies are halted. On May 19, SIAM met Commerce Ministry officials, and submitted an internal document which warned that India's auto industry could likely come to a complete halt by late May or early June, if the exports from China were not resumed. Representatives of country's top carmakers, including Maruti Suzuki, Mahindra & Mahindra and Tata Motors were present in this meeting. The SIAM document has urged the government to expedite the approval of import applications, and put pressure on Chinese authorities to accelerate licenses on an urgent basis. According to Reuters, a few Chinese magnet producers have received permission to resume exports, but industry insiders fear that approvals may face prolonged delays due to the current tensions in India-China relations. China dominates rare earth magnets industry According to official estimates, China controls more than 90% production of rare earth magnets, and imposed restrictions on their export in April in response to the tariffs imposed by US President Donald Trump, China has reportedly informed automakers to acquire import permits from Chinese authorities, and while the ban is mostly on high-performance magnets, shipments of low-cost magnets have also been stopped due to confusion in the implementation of the new export rules. The process of importing rare earth magnets from China is a very complicated one as it requires approvals from several Indian ministries and submission of an end-use certificate, which guarantees that these magnets will not be used in defense manufacturing or exported to other countries such as the US without Beijing's explicit permission. These documents are then verified by the Chinese embassy in New Delhi and sent to Chinese suppliers, after which Beijing issues export licenses. Queried about export restrictions imposed on India, Chinese Embassy officials said they are actively working on facilitating and streamlining trade compliance in accordance with legal and regulatory requirements. The embassy reiterated that the primary purpose of imposing imposing export controls on rare earth elements was to safeguard the interests and national security of China. India's rare earth magnet imports As per customs data, Chinese exports of permanent magnets fell 51% to 2,626 tonnes in April after the export ban came into force, while India imported 460 tonnes of rare earth magnets, most of which came from China, in the financial year that ended on March 31, 2025. According to industry estimates, India expects to import 700 tonnes of magnets worth $30 million this year.
Time of India
6 days ago
- Automotive
- Time of India
A China move could leave Indian car production dead in its tracks
India's auto manufacturing faced a severe threat from China's sudden export restrictions on rare earth magnets, putting the country's car production at risk of coming to a complete halt within days, according to company executives and industry documents seen by Reuters. These magnets are vital components used not only in electric vehicle motors but also in everyday car parts like power windows and audio systems. However, ET had reported citing sources that imports of permanent magnets used in cars and other electronics from China have likely resumed after India began issuing certificates assuring compliance with China's export curbs. Officials said the Directorate General of Foreign Trade (DGFT) has issued around 30 certificates, one for each consignment, confirming that these permanent magnets would not be used for defence applications nor re-exported to the United States. Industry insiders had warned that a production stoppage remained imminent with the curbs by Chna. Reuters reported, citing company executives and documents from industry groups, that inventories of rare earth magnets held by auto part makers were expected to run out by the end of May. The Society of Indian Automobile Manufacturers (SIAM) urged the government to intervene and lobby Beijing to ease restrictions, warning of a looming crisis in the world's third-largest car market. China controls more than 90% of the global processing capacity for these magnets, which are essential not only for electric vehicle motors but also for traditional car components like power windows and audio speakers. Beijing introduced the export restrictions in April as a response to U.S. President Donald Trump's tariffs, requiring companies to obtain import permits from Chinese authorities. While the curbs primarily target high-performance magnets, shipments of low-end magnets have also been held up amid confusion over how the new rules should be implemented. In a meeting with commerce ministry officials on May 19, SIAM presented an internal document stating, 'Starting end May or early June, auto industry production is expected to come to a grinding halt.' The meeting included executives from Maruti Suzuki , Mahindra & Mahindra, and Tata Motors . Though some Chinese magnet producers, including suppliers to Volkswagen, have had their exports cleared, three auto industry executives told Reuters they fear that strained India-China relations could delay approvals, worsening the supply bottleneck. These executives requested anonymity due to the sensitivity of the issue. When asked about the export restrictions' impact on India, China's embassy in New Delhi said it was 'actively facilitating and streamlining compliant trade' according to legal and regulatory requirements. The embassy added, 'China's lawful imposition of export controls on these items aims to better safeguard national security and interests.' Requests for comment sent to Mahindra, Maruti, Tata , SIAM, the Indian commerce and external affairs ministries, and the Auto Component Manufacturers Association of India (ACMA) went unanswered. The import process for these magnets is complex, requiring approval from Indian ministries and the submission of 'end-use certificates' to prove the magnets will not be used for military purposes. These documents must be verified by the Chinese embassy in New Delhi and forwarded to the Chinese suppliers, after which Beijing issues the export licence. The SIAM document said India should approve import applications 'within hours' and pressure Chinese authorities to expedite licences 'on an urgent basis.' China's exports of permanent magnets fell 51% year on year to 2,626 tons in April, the first month data was available after the export curbs took effect, according to customs figures. India imported 460 tons of rare earth magnets, mostly from China, in the fiscal year ending March 31 and expects to bring in 700 tons valued at $30 million this year, according to industry estimates. SIAM and ACMA warned in a separate document submitted to the Indian government, 'Though the cost of imported rare earth magnets is minuscule in vehicles, risk is vehicles cannot be manufactured even if we are short of one component.'
