Auto component industry seeks national strategy on critical materials

Terming the rare earth shortages as a major concern, ACMA President Shradha Suri Marwah said that the industry is agile and has started to work on alternative solutions

Facing potential production losses due to a shortage of rare earth magnets, the auto component industry body ACMA on Tuesday sought a national strategy on critical materials to secure electric vehicle production in the country.

Terming the rare earth shortages as a major concern, Automotive Component Manufacturers Association of India (ACMA) President Shradha Suri Marwah said that the industry is agile and has started to work on alternative solutions.

"The limited availability of rare earth magnets remains a concern, underscoring the need for a national strategy on critical materials to secure the future of EV and mobility manufacturing in India," she stated.

Despite various geopolitical issues and supply chain challenges, the auto components industry reported a turnover of USD 80.2 billion for FY2025, a growth of around 10 per cent as compared with FY2024, Marwah stated.

The industry grew at a CAGR of 14 per cent from FY20 to FY25, nearly doubling in size over a period of past five years.

"FY25 was yet another milestone year where the industry's growth was underpinned by strong domestic demand, rising exports and increasing value addition," Marwah said.

As India transitions towards new-age mobility, the industry is making the necessary strides in investments, technology and localisation to serve both domestic and global markets effectively, she added.