The imposition of export restrictions by China on important rare earth magnets has resulted in Supply Chain bottlenecks, which influences the user industry, including the automatic and electronic sectors.
The magnets are essential components between sectors such as cars, household appliances and renewable energy.
“Basic, all the actions we have taken, FY26 is more or less managed. We now have to work on some medium and long -term actions,” Mahindra & Mahindra (M & M) Chief Financial Officer Amarjyoti Barua told PTI in an interaction.
The company has taken steps to build inventory through alternative sources to ensure the problem, he said.
“It has been good for us so far and we do not foresee that a big risk for the next nine months,” said Barua. “But given the growth plans we have, we have to think about a much larger game than what the tactical games we have done, and that will require much more technical efforts,” he added. The engineers of the company are working on different solutions to work out a solution, said Barua.
Last week Maruti Suzuki stated that his engineers work to reduce the problem with rare earth magnet deficit, and noted that there has been no influence on production so far.
Hyundai Motor India has also stated that it is not confronted with production problems due to the shortage of rare earth magnets.
In June, the ICRA rating agency stated that stocks of rare earth magnets used in critical automotive components, in particular drawing engines and power steering systems for electric vehicles and power steering systems, could run dry this year. Crisil, another rating agency, had also marked it as a considerable risk for the supply chains for cars.
The magnets in question, Neodymium-IJzer-Boron, are known for their strength and efficiency, used for powerful automot applications such as traction engines in electric vehicles and power steering in both electric vehicles and internal combustion engines.
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