“There is a motive, but no change on the ground and the magnet supply has not resumed,” Ashok Leyland’s MD and CEO Shenu Agarwal told ET.
Senior executives of the leading global component supplier say that magnetic shipments from China are keeping a magnetic shipment, but they hope to get official approval within a month.
Two-wheeler Maker TVS motor company also felt a pinch. “We are managing magnetic deficiencies on a daily basis, which means it is challenging,” said KN Radhakrishnan, Director and CEO.
Magnet made with rare earth components is a serious input for electric motors used in passenger vehicles, two -wheelers and commercial vehicles. During the festive season, the supply of supply of the householder industry in the festive season has caused concern over potential production obstacles. However, the leading caramel has insisted that they have not faced any obstacles so far. Maruti Suzuki, Tata Motors and Mahindra and Mahindra Executive said that they have been able to continue assembly lines due to the existing list of magnetic designs and parallel efforts. For example, Mahindra has remained enough reserves by the quarter of December. Industry observers pointed out that this area underlines the insecurity of India’s vehicle sector to push in strategic inputs such as rare earth, where it was overwhelmingly dependent on China. Globally, Beijing is more than 80% of rare earth magnet exports.
While the policy makers are putting pressure for localization and alternative sources, the executive privately confesses that it will take many years to install non -trusted Chinese supply chains. Until then, they live on the mercy of geographical political developments.
For now, automakers are in waiting-and-looking mode for the initial success of bilateral discussions, while stretching the existing list to prevent interruption. “The product has not been disrupted so far. But it will be a balanced act until the supply is restored soon,” said a senior industry executive officer.