Tata Motors Chairman N. Chandrasekaran has assured shareholders that the company currently has sufficient stock of rare earth magnets, even as it actively scouts for alternative global sources in response to China’s ongoing export restrictions.
Speaking at the company’s 80th Annual General Meeting, Chandrasekaran said,
“As of now, we are okay. We are not facing issues. We are able to source the magnets that we need, and we have plans for having the right level of inventory. We are working with the government.”
🔧 Why Rare Earth Magnets Matter
Rare earth magnets—especially Neodymium-Iron-Boron (NdFeB) and Samarium-Cobalt (SmCo)—are critical for electric vehicles (EVs), hybrids, and internal combustion engine (ICE) models. They power essential systems like traction motors, electric power steering, regenerative braking, and HVAC units.
🌍 China Curbs Spark Industry-Wide Concern
China’s April 2025 decision to tighten rare earth magnet exports has disrupted global supply chains. While the U.S. and China have reached a partial trade resolution, exports to India remain blocked, prompting Indian automakers to seek government intervention.
🚗 Tata Motors’ Strategic Response
- Inventory Management: Tata Motors has built up adequate reserves to avoid short-term disruptions
- Government Collaboration: The company is working closely with Indian authorities to secure approvals and streamline imports
- Diversification: Tata is exploring non-Chinese sources to reduce dependency and ensure long-term supply stability
📉 Industry Impact
Other automakers like Maruti Suzuki and Bajaj Auto have warned of potential production cuts starting July due to rare earth shortages. In contrast, Tata Motors remains confident, with Chandrasekaran reaffirming the group’s commitment to its EV roadmap and 30% penetration target by 2030.
Stay tuned for more updates on India’s EV and manufacturing ecosystem.
