New Delhi . The Future of India Auto Industry has been cloudy for crisis on the future, as China has stopped India Import from Us. This thing is more important for electric vehicles and traditional vehicles. In direct words, no vehicle can be ready without it. This thing is used in a system ranging from motor and steering to brakes, wipers and audio equipment. Without this, the production of vehicles will stop.
Due to changes in China Export Rules by China, companies are upset due to delay in shipment and warning that vehicle production may be hindered if the supply is not restored soon. The rare thing we are talking about is the name of Neodimium-Ayran-Boron (NDFEB). It is a rare fucking metal, which is most produced by China in countries around the world.
Chinese crisis due to China’s actions
China produces more than 90% of the world’s rare earth magnetic metal. It implemented strict export control rules in April. Under the new rules, exporters must receive government license and detailed final use certificate from buyers before shipping. Despite this, when procedures were done, the exporter has to wait a long time for approval. According to The Economic Times, many consignments going to India are trapped at Chinese ports and there is no movement.
Some European companies have got its approval, but Indian companies have not yet received export approval, which has increased the concern that the production will start to get pressure. Industry officials say that the current inventory level may end by the beginning of June.
What is India taking steps?
In response, a delegation of the Society of Indian Automobile Manufacturers (SIAM) and Automotive Component Manufacturers Association (ACMA) is preparing to visit China. Their purpose is to meet Chinese officials and get quick approval. The ET report claimed that India’s Ministry of Commerce and External Affairs is actively supporting this contact through diplomatic channels.
Why is this metal important for India?
India imported 460 tonnes of rare meaning magnets in FY 2024, which were almost all from China and plans to import 700 tonnes this year. Today there is no option on a large scale, which makes Indian production lines unsafe. India is carrying forward domestic production schemes to reduce long -based dependence. A meeting has been scheduled on June 3, in which the Ministry of Industries will finalize a support infrastructure for magnet construction, including encouragement and infrastructure.
