Indian auto industry delegation yet to leave for China for talks

New Delhi: Indian Auto industry representatives are yet to leave for China to expedite the import of rare earth magnets as the delegation is still awaiting a formal go-ahead from the Chinese commerce ministry for a meeting, as per industry sources.

Around 40-50 industry executives have received visas last month, but are still awaiting a formal nod from the Chinese authorities for the meetings on the matter. Staring at shortages, the domestic automobile industry has also sought government support in expediting approvals from China to import rare earth magnets.

“They (Chinese authorities) have not given any appointment so far, so the delegation is yet to leave. Situation is bad as not even a single license has been issued to us so far,” a source said. If the situation remains like this, the domestic automobile industry will be staring at shortages resulting in significant production losses, the source added.

The domestic auto industry is forced to take steps as the Chinese government has put restrictions since April 4 this year 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.