
India Index
June 1, 2025 at 09:26 AM
India’s auto industry faces a major supply chain crisis as China restricts rare earth magnet exports, threatening EV and conventional car production. Indian automakers, facing potential shutdowns by early June, are sending a high-level delegation to China to secure supplies and negotiate solutions.
To ease the crisis, India is issuing government certificates ensuring imported magnets are not used for defense or re-exported to the US, which has allowed some shipments to resume.
India is now accelerating plans to boost domestic rare earth magnet production and reduce reliance on China.