Auto cos looking at alternatives to China for magnets, says SIAM president
This story was originally published at 15:15 IST on 15 July 2025
Register to read our real-time news.Informist, Tuesday, Jul. 15, 2025
Please click here to read all liners published on this story
--SIAM Chandra: 2-wheeler sales fell in Q1 due to correction in stock
--CONTEXT: SIAM President Chandra's comments at press meet in Mumbai
--SIAM Chandra: 2-wheelers sales growth in FY26 may not be as strong as FY25
--SIAM Chandra: Entry car segment facing problem related to demand
--SIAM Chandra: Don't see big issue in premium car segment
--SIAM Chandra on rare earth magnet supply: Looking at alternatives to China
--SIAM Chandra:Importers of rare earth magnets in touch with China officials
--SIAM Chandra on Tesla launch: Good for the country
--SIAM Chandra: Two-wheeler sales in FY26 likely to grow over 5%
--SIAM Chandra: Some OEMs may face disruption from curbs on rare earth metals
--SIAM Chandra on rare earth magnets: Tata Motors has inventory for 1-2 mos
--SIAM Chandra on rare earth magnets: Tata Motors comfortable currently
MUMBAI – The Society of Indian Automobile Manufacturers is looking at other countries that can supply rare earth magnets to Indian companies amid curbs on supply from China, which have led to fears of automobile production taking a hit. However, the industry body has not finalised the list of such countries, SIAM President Shailesh Chandra said at an event in Mumbai.
The industry body is also looking to source rare earth magnets locally, but discussions on this issue with the government are still at an early stage, he said. The industry is debating ways to tackle the shortage, including finding alternatives to China, recycling magnets from vehicles, and the possibility of "enablers" from the government to promote the production of magnets in India.
Chandra said rare earth magnet importers have submitted several applications to officials in China and are now waiting for their reply. He expects the supply chain issue to get resolved in the "coming days".
Chandra acknowledged that the production of some original equipment manufacturers in the automobile sector may take a hit if the magnet supply problem persists for more than a month. Chandra, who is also managing director of Tata Motors, said his company is in a comfortable position despite the magnet shortage and has an inventory of 1-2 months.
Chandra made these comments while announcing the sales figures of original equipment manufacturers to dealers in June. The June data showed passenger vehicle and two-wheeler sales in June declined on year, while three-wheeler sales rose.
Two-wheeler sales in June declined over 3% on year to 1.56 million units. Commenting on the fall, Chandra said this was largely due to stock correction at the dealers' end. He expects demand for two-wheelers to improve later this year but cautioned that the segment may see a slowdown in the financial year 2025-26 (Apr-Mar). Chandra expects two-wheeler sales to rise over 5% in FY26, slower than the rise of over 9% recorded in FY25.
Chandra acknowledged that weak demand is a problem for passenger vehicle sales, too, especially in the small car segment. In June, passenger vehicle sales declined over 7% on year to 312,849 units, SIAM data showed. Chandra expects cars under INR 1.00 million per unit to continue to face demand-related issues this year, while cars above INR 1.50 million are likely to see better demand.
Talking about competition in the market with the entry of Tesla, Inc., he said there is a possibility of higher competition in the electric vehicle segment considering other strong global players, which he did not name. Overall, he believes Tesla's entry is good for India and does not see it as a threat to the domestic industry. End
Reported by Anshul Choudhary
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
