Risk of car production in India coming to halt amidst China magnet export curbs

By Aryan Aggarwal05 Jun 2025
Image credits: Tata Motors

China magnet curbs

China has halted exports of magnets made from rare earth metals, which are a significant component of car production all over the globe. This halt has reportedly been in place from as early as April 4. 

Image credits: Mahindra

China’s dominance

These rare earth metals magnets are mostly sourced from China, with major automakers around the world dependent on the country for acquiring the same.

China US tussle

There’s been a trade war going on majorly between the USA and China, which is impacting not just the two countries, but many more, including India.

SIAM asks for help

As per a report by Reuters, SIAM (Society of Indian Automobile Manufacturers) has reached out to the Indian Government to seek help in order to expedite exports of rare earth magnets from China and cut down the extensive procedures in order to avoid any production halts.

Image credits: SIAM

Use of rare earth magnets in cars

The magnets in question are used extensively in the production of automobiles, including components not limited to speakers, power windows, and electric vehicle motors.

Image credits: CARS24 New Cars
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