RC Bhargava: Maruti Suzuki India sees no impact till July from rare earth magnet curbs

“Applications are in the pipeline, and we hope they will be processed in the designated time frame,” he said, adding that Indian automotive companies, including Maruti, submitted import applications over a month ago. “There will be no impact on manufacturing if China approves licences in a timely manner,” Bhargava noted.

While electric vehicles are generally more dependent on rare earth magnets than internal combustion engine (ICE) vehicles, Bhargava clarified that Maruti does not foresee any immediate impact on either EV or ICE production.
The Indian automobile industry has urged the government to step in and help expedite approvals from Chinese authorities. Since April 4, China has mandated special export licences and government-verified end-user certificates for shipping out seven rare earth elements and related magnets.
China accounts for almost 70% of the world’s production of rare earths.

Also read: China’s rare earth exports recover ahead of US trade talks

According to PTI sources, several domestic suppliers have filed applications through their local Chinese partners, but approvals are still pending. In Japan, Suzuki Motor has already halted Swift production due to the curbs.

Last week, Maruti Suzuki India Senior Executive Officer (Corporate Affairs) Rahul Bharti said China has asked for an end-user certificate, endorsed by the Indian government and approved by the Chinese government. ”So that process is on and industry is in discussion with the government,” he stated.

Also Read: India’s auto industry growth could slip into negative due to rare earth magnet shortage, says S&P Global’s Puneet Gupta

Puneet Gupta of S&P Global Mobility warned that prolonged delays could push the Indian auto sector toward negative growth in 2025, particularly affecting large-volume players like Maruti and TVS.