 "Maruti Suzuki, Bhargava")
Maruti Suzuki has stocks of rare earth magnets imported from China that will last only until the end of July. The company will prepare a contingency plan, including exploring alternatives, if the ongoing issue remains unresolved by then.
Asked about the impact of China not clearing imports of rare earth magnets — an item for which automotive companies must now seek a licence — Maruti Suzuki Chairman R C Bhargava said: “We have stocks of rare earth magnets till July-end, and everyone, including us, is hopeful that China will resume supplies. We are also looking at alternatives, but there is nothing concrete to say at this moment. Talks are on with them as well.”
Bhargava added that the import squeeze was impacting both Chinese and Indian companies and did not benefit anyone. “China also has significant business interests in India, so there is no logic in what they are doing. By hurting commercial interests, they are harming companies in both countries — so no one really gains,” he said.
On alternatives being tested by several electric two-wheeler companies — such as replacing heavy rare earth magnets with light rare earth magnets, which are not covered under China’s export-control regime — Bhargava said: “It’s too early, but my understanding is that it won’t provide the same efficiency in a car.”
The company has already announced a reduction in the production schedule of the eVX, its maiden electric vehicle, which was slated for domestic launch in July but is already being exported to Europe. For instance, the company has cut its production target by two-thirds for the April-September period, though it still aims to meet its full-year target of 67,000 units by ramping up production later in the year.
Some other carmakers have indicated stocks to last some time. Hyundai, for instance, said in investor calls in South Korea that it had sufficient rare earth magnet stock to last over a year. Analysts said Hyundai stockpiled inventory from China before the introduction of stricter export rules.
Rare earth magnets are not only used in electric vehicles but also in internal combustion engine and hybrid passenger cars in components like electric power steering, windscreen wipers, automatic windows, and engine accessories using small motors.
