The Indian Auto Component Industry has “no visibility” on when it will be about to resume imports of rare earth magnets from china, industry reproduction said on tuesday. The industry, which grew by 9.6 per cent to $ 80.2 billion in 2024-25, is also facing other geopolitical headwinds, Such as potential us tearifs and supply chain disussed by conflies in the mddle. Added.
“Were facing challenges on the front of Rare Earth Magnets from China. Again, there is no visibility Manufacturers Association (ACMA) of India, Said at a Press Conference.
Since April, China has blocked the export of Rare Earth Magnets, key components in traction motors for electric vehicles (EVS), to markets Around the world, including india.
On what the industry is facing shortages, meta has formally come and told us. Have the Inventories, the Inventories are not infinite. “
Shradha Suri Marwah, President of Acma and Chairperson and Managing Director “We have started work on alternate solorses.
In FY25, India’s auto component sector grew by 9.6 per cent to $ 80.2 billion from $ 74.1 billion in fy24. The sector has also recorded a compound Annual growth rate (cagr) of 14 per cent since fy20, when it was sized at $ 49.3 billion.
Exports GREW by 8 Per Cent to $ 22.9 billion, while Imports Grow by 7.3 per cent to $ 22.4 billion in the last financial year. Both exports and imports hit a five-yar high, compared to $ 13.3 billion and $ 13.8 billion, respectively, in fy21.
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The us remained India’s top auto component export destination in FY25, accounting for 27 per cent, followed by Germany (7 per cent) and thailand (4 per cent). On the import side, china led with a 32 per cent share, trailed by Germany (11 per cent) and japan (10 per cent).
FY26 Industry Outlook
In its outlook for the online financial year, ACMA identified geopolitical challenges and rising freight cost as key headwinds. “Geopolitics Today is very disruptive. We don’t know when and wherever will strike. It is a dominating sentiment. Tariffs are unstable. Cover something is there, but nevertheless.
With the us being India’s livest auto parts export market, any new tariffs Could deemand and Hurt Domestic Exporters. President Setting Rates At 25 to 40 Per Cent.
Suri also Said Maritime Trade Disruptions Are Causing Longer Lead Times and Tying Up Cash Flows. “Whaer it’s on the red sea side or the singapore port, and now with the Iran issues, Routes are redone. For example, what time earler time is now Taking 22 days… Localization is increasing and DEPENCE. Trade is down in the value chain, it is not impactful, it is called “.
