new delhi: A delegation of auto industry representatives is gearing up for a China visit to expedite the import of rare earth magnets to Indian entities, as per the industry sources.
Around 40-50 company executives have received visa approval but still await a go-ahead from the Chinese commerce ministry for a meeting regarding the matter.
“Around 40-50 executives, representing both auto OEMs and component firms, have received visas and are now awaiting a go-ahead from China’s Ministry of Commerce for a meeting,” an industry source stated.
No approvals have been granted so far, another source added.
The domestic auto industry is forced to take steps as the Chinese government has put restrictions since April 4 on the export of rare earth elements and related magnets.
China has mandated special export licences for seven rare earth elements and related magnets.
The country controls over 90 per cent of the global processing capacity for magnets, used across sectors, including automobiles, home appliances and clean energy.
With no clarity on approvals, the Indian automobile industry is staring at production issues, especially for electric vehicles.
The country’s largest carmaker Maruti Suzuki India is recalibrating production of its upcoming model e-VITARA due to the shortage of rare earth magnets, industry sources said.
The auto major is looking to produce around 8,000 units of the model by September against the earlier stated plan of rolling out over 26,000 units during the period.
The company, however, plans to make up for the production dip in the subsequent months with a stated target to produce around 67,000 units of the model this fiscal, the sources said.
The domestic automobile industry has also sought government support in expediting approvals from China to import rare earth magnets.
The critical materials include samarium, gadolinium, terbium, dysprosium and lutetium, which are essential in electric motors, braking systems, smartphones and missile technology.
Rare earth magnets are integral to permanent magnet synchronous motors (PMSMs) used in EVs for high torque, energy efficiency and compact size.