 "Tata Motors says no 'panic button' pressed yet on rare-earth magnet curbs")
Tata Motors said on Tuesday that export restrictions on rare-earth magnets imposed by China have not yet disrupted its production pipeline, and the company is actively exploring alternate sources and technologies.
“Currently, I think there's no panic because we believe the supplies are coming through. There's no production curtailment. Nothing is being planned at this point in time,” said PB Balaji, Chief Financial Officer (CFO) of Tata Motors, during an event held in Mumbai.
Balaji added that the company is investigating a range of alternate supply channels, including technological alternatives to rare-earth magnets.
China’s export curbs spark global industry concern
China, which controls approximately 90 per cent of global rare-earth mineral production, announced new export restrictions in April amid heightened trade tensions with the United States. The move caused supply-chain disruptions in multiple sectors, including automotive, aerospace, semiconductors, and defence.
Rare-earth magnets are critical components in electric motors and other high-performance applications, making them essential for electric vehicle (EV) production.
Other automakers also impacted, though some deny effect
Earlier this month, Reuters reported that Maruti Suzuki had reduced production of its electric e-Vitara by two-thirds due to rare-earth shortages. However, the company later issued a clarification denying any disruption, stating that it is exploring multiple supply solutions to maintain operational continuity.
JLR to raise prices amid US tariff pressure
Balaji also addressed the impact of new US tariffs on Tata Motors’ luxury subsidiary Jaguar Land Rover (JLR), stating that price hikes would be introduced “in a calibrated manner”.
Last week, JLR revised its FY26 earnings before interest and taxes (EBIT) margin guidance from 10 per cent to a reduced range of 5–7 per cent, citing global uncertainty and tariff-related challenges.
Despite the pressure from new import duties, Tata Motors has no immediate plans to establish a manufacturing facility in the United States, Balaji confirmed.