Neighboring china considers india as its biggest competitor in South Asia. After the tariff announcement by US President donald trump on april 2, when many big companies including apple have announced to shift their business from china to india, beijing has not been able to digest this. Now another such news has come which is going to create disappointment for indian electric vehicle companies.
The way india is moving ahead rapidly in the electric vehicle sector, china is not liking it. china, which has about 90 percent of the world's rare earth magnets, has implemented strict rules on its export from the month of April. The result of this is that no Chinese company can sell it further without taking a license and its end use certificate from the government there.
TVS-Bajaj Motors' warning
In such a situation, trouble has arisen for indian electric vehicle companies because many such rare earth containers which had left for New delhi from china are still stuck there, they are not being approved.
This rare earth magnets are used in making both electric and conventional vehicles. In such a situation, market experts say that if the ban on containers from china continues in this way, then a big crisis can arise for indian companies. It is also being said that indian automobile companies have stock of rare earth only till June. india imported more than 460 tonnes of rare earth from china in the financial year 2024.
Trouble increased for indian companies
In such a situation, the biggest concern is that no other option is visible at this time. The government of india is promoting domestic magnet production to reduce its dependence on China. But it will take a lot of time. In such a situation, it is being said in media reports that an important meeting has been called by the Ministry of Heavy industries on june 3, i.e. today, in which an important decision can be taken regarding the production of rare earth magnets.
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