The panic button has not been pressed, the supplies come through: Tata Motors on Rare Earth Magnet Crisis

Even as the global auto industry is witnessing a ban on the import of rare land magnets from China, Tata Motors did not press the panic button, a senior official in the company told reporters on Tuesday.

“The rare land situation at this stage – between stock and alternative sources – we are fine. We will have to wait to see how to go forward. There are also developments in terms of China and the European Union who behave together on the side of the rare land magnets. So, it moves at this stage.

According to Balaji, the company does not expect to reduce production yet.

Nowadays, China represents more than 90 % of the capacity of rare global Earth magnets. Since April 4, 2025, China has imposed special export licenses for seven types of rare ground and final magnets. This includes a request for detailed ads for the final use and ensuring that products are not used for defense related purposes or re -export them to countries such as the United States.

The new regulations led to a great delay, as the clearances now lasted at least 45 days, causing increased accumulation.

Car manufacturers such as Bajaj Auto and TVs Motor have already expressed their concerns about EV production that is likely to be hit by the rare Earth magnet crisis. Suzuki Motor Corporation is facing production challenges – especially with the rapid model in Japan – to China’s restrictions on rare ground elements exports. Maruti Suzuki, a subsidiary in India, was also affected by the reduction of the production of its electric car in the guitar due to the same problem. MSIL has reduced its production expectations for the upcoming SUVs, E-Jita, from the first target of more than 26,000 units to about 8,000 units by September due to rare ground supply restrictions. Msil aims to achieve its entire public goal of 67,000 units by intensifying production at a later time.

According to a report issued by the classification agency, China’s restrictions on rare Earth magnet exports can slowly slow down in the auto sector in India, especially the production of electric vehicles (EV). CRISIL classifications said that although passenger vehicle sizes are expected to grow 2-4 % in the 26th fiscal year, EV growth (expected by 35-40 %) can significantly reduce if the supply restrictions are worse.

Meanwhile, the government is said to launch a new initiative by 1,000 rupee crises aimed at stimulating the local production of rare ground magnets. Rare Earth magnets are important elements in sectors such as electric cars, electronics and defense.