As China clamps rare-earth exports, India charts a strategic roadmap; domestic mining, homegrown processing, alternative suppliers and R&D, to safeguard its automotive and clean-tech ambitions

Rare earth magnet shortages threaten India’s auto sector, with inventories depleting by mid-July 2025 due to China’s export curbs. Strategies like local production and alternatives are critical to sustain EV growth amid supply chain fragility.

Think of rare earth elements as the unsung heroes inside every electric vehicle. They’re critical for building high-performance magnets that power EV motors, especially those found in electric SUVs like the e-Vitara. The twist? China controls over 90% of the world’s supply and refining of these magnets.

With a demand uptick in the hinterland, Škoda Auto India is anticipating more than 50 per cent of its sales to come from tier-2 and r-3 cities, a top official said.

The denial comes in the wake of reports that said the output target of Maruti's upcoming electric SUV-- e-Vitara-- might be impacted due rare earth crunch.

Maruti Suzuki has cut e-Vitara electric SUV production by two-thirds due to a global rare-earth material shortage, impacting its EV strategy in India. Click for details.