+
India Seeks China Talks Over Magnet Import Delays
ECONOMY & POLICY

India Seeks China Talks Over Magnet Import Delays

Indian authorities are initiating diplomatic engagement with Beijing to resolve delays in the import of rare earth magnets from China, which are critical to the country's auto, electronics, and clean energy sectors. According to The Economic Times, the supply disruption has triggered concerns across industries, particularly among electric vehicle (EV) and gear system manufacturers.
Despite the Chinese embassy in India endorsing import applications for nine Indian auto component firms—including Continental Automotive, Hitachi Astemo, and Mahle Electric Drives—final clearance from China’s commerce ministry has not been granted. No shipments have been released in the past two months, raising the risk of production halts.
Rare earth magnets, though representing a small proportion of total import value, are indispensable in drive trains, electric circuits, and motor systems. “Even if one such component is missing, production stops entirely,” an industry executive told The Economic Times.
India imported 870 tonnes of rare earth magnets worth approximately Rs 3.06 billion in FY25. The Society of Indian Automobile Manufacturers (SIAM) recently warned the government that inventory levels are critically low and disruptions to vehicle production could begin within weeks.
The impact extends beyond the auto industry. “It affects everyone—automotive, aerospace, electronics, clean energy. Anything involving electric circuits is at risk,” said another executive.
These supply issues stem from export restrictions announced by China on 4 April, reportedly for national security reasons. The controls follow global trade tensions and have impacted firms not only in India but also in the US, Germany, and Japan.
Out of 17 Indian companies that applied for import clearances, eight—including Minda Instruments, Nippon Audiotronix, and HMC MM Auto—are still awaiting End User Certificate (EUC) approvals from the Chinese embassy, further aggravating the supply chain crisis.

Indian authorities are initiating diplomatic engagement with Beijing to resolve delays in the import of rare earth magnets from China, which are critical to the country's auto, electronics, and clean energy sectors. According to The Economic Times, the supply disruption has triggered concerns across industries, particularly among electric vehicle (EV) and gear system manufacturers.Despite the Chinese embassy in India endorsing import applications for nine Indian auto component firms—including Continental Automotive, Hitachi Astemo, and Mahle Electric Drives—final clearance from China’s commerce ministry has not been granted. No shipments have been released in the past two months, raising the risk of production halts.Rare earth magnets, though representing a small proportion of total import value, are indispensable in drive trains, electric circuits, and motor systems. “Even if one such component is missing, production stops entirely,” an industry executive told The Economic Times.India imported 870 tonnes of rare earth magnets worth approximately Rs 3.06 billion in FY25. The Society of Indian Automobile Manufacturers (SIAM) recently warned the government that inventory levels are critically low and disruptions to vehicle production could begin within weeks.The impact extends beyond the auto industry. “It affects everyone—automotive, aerospace, electronics, clean energy. Anything involving electric circuits is at risk,” said another executive.These supply issues stem from export restrictions announced by China on 4 April, reportedly for national security reasons. The controls follow global trade tensions and have impacted firms not only in India but also in the US, Germany, and Japan.Out of 17 Indian companies that applied for import clearances, eight—including Minda Instruments, Nippon Audiotronix, and HMC MM Auto—are still awaiting End User Certificate (EUC) approvals from the Chinese embassy, further aggravating the supply chain crisis.

Next Story
Infrastructure Energy

L&T to Build India’s Largest Green Hydrogen Plant for IOCL

The plant will be developed on a build-own-operate (BOO) model and will supply 10,000 tonnes of green hydrogen annually to IOCL for a period of 25 years. It will operate entirely on renewable energy, aligning with IOCL’s decarbonisation goals and India’s broader net-zero ambitions.Green hydrogen at the plant will be produced using high-pressure alkaline electrolysers manufactured at L&T Electrolysers Ltd’s facility in Hazira, Gujarat. This initiative further showcases L&T’s commitment to localised, self-reliant clean-tech solutions under the Aatmanirbhar Bharat mission.LTEG’s..

Next Story
Infrastructure Urban

Bansal Wire Q1 Profit Rises 24.6% to Rs 393 Mn

Bansal Wire Industries, India’s largest stainless steel wire manufacturer and second-largest steel wire maker by volume, reported a 24.6 per cent year-on-year rise in net profit to Rs 393 million for the quarter ended June 30, 2025 (Q1 FY26).During the quarter, revenue rose 14.9 per cent YoY to Rs 9,390 million, while EBITDA increased by 19.6 per cent YoY to Rs 745 million, reflecting the company's strong operational performance and focus on value-added segments.According to Pranav Bansal, MD & CEO of Bansal Wire Industries, the company has started FY26 on a strong note, building on the ..

Next Story
Infrastructure Urban

Lemon Tree Opens Keys Lite Hotel in Banswara, Rajasthan

Lemon Tree Hotels has launched its latest property, Keys Lite by Lemon Tree Hotels, Banswara, further expanding its footprint in Rajasthan. This marks the group’s 11th operational hotel in the state and continues its focus on providing quality stays in emerging travel destinations.The newly launched managed hotel features 54 well-appointed rooms, a multi-cuisine restaurant – Keys Café, a fitness centre, and spacious banquet and conference facilities, catering to both leisure and business travellers.Located in southern Rajasthan, Banswara is known as the “City of Hundred Islands” for t..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?