India's Auto Component Industry Sounds the Alarm

India's auto component industry is urgently calling for a national strategy to secure essential materials for electric vehicle (EV) manufacturing. This comes in response to a potential production crunch caused by a shortage of rare earth magnets, exacerbated by China's recent export restrictions.

The Impact of China's Export Restrictions

China, which processes over 90% of the world's magnets, imposed export restrictions in April, affecting key components not only in EVs but also in clean energy, home appliances, and traditional vehicles. The Automotive Component Manufacturers Association of India (ACMA) has raised concerns over dwindling supplies, warning of severe disruptions to the country's EV plans.

Seeking Solutions and Self-Reliance

ACMA president Shradha Suri Marwah emphasized the need for a national strategy on critical materials to secure the future of EV and mobility manufacturing in India. The industry is exploring alternative solutions and aiming for self-reliance to mitigate the impact of China's export curbs.

Challenges and Future Outlook

Despite current challenges, including geopolitical disruptions affecting global supply chains, the auto components industry remains optimistic about the future. Efforts are underway to localize production and reduce dependency, with the sector expecting steady growth in FY26.