China’s rare earth magnet curbs a ‘wake-up call’: Commerce Minister Goyal

Piyush Goyal, the Union Minister of Commerce and Industry, said that China’s curbs on the export of rare-earth magnet curbs is a ‘wake-up call’, he told reporters in Switzerland late on Monday, adding that India is in talks with China on the supply of rare-earth magnets as the Indian automotive industry waits, with a bated breath, for the Indian government’s intervention to resume supply.

“In a way, it's a wake-up call for all those who have become over-reliant on certain geographies. It’s a wake-up call for the whole world that you need trusted partners in your supply chain,” said Goyal. His comments come at a time when the automotive industry faces the threat of production being halted due to prolonged supply disruptions.  

While carmakers have been tight-lipped about the potential impact of a prolonged disruption, the overtures are becoming palpable. Maruti Suzuki , India’s largest carmaker, has reduced the near-term production targets of its debut electric vehicle, the e-Vitara, by two-thirds due to the disruptions the company is facing, Reuters reported on Tuesday, citing an internal document.  

Although the chairman of India’s largest carmaker by sales, RC Bhargava, told PTI on Monday that there is no impact of the rare earth magnets, the internal document cited by the news agency says that Maruti Suzuki now plans to make 8,200 e-Vitaras between April and September, compared to the previous target of 26,500 units.

The document cited “supply-chain constraints” in rare-earth magnets as the reason behind the production cuts. However, the document cited in the Reuters report says that Maruti Suzuki maintains its output target of 67,000 e-Vitaras for the year ending March 2026 by ramping up supply.

Maruti Suzuki will achieve its target by ramping up production in the second half of the year—between October and March 2026—by producing 58,728 EVs, peaking at about 440 EVs per day, vis-a-vis 40,437 EVs under the original plan.

Goyal, however, differs with what the carmaker has stated publicly.“There are clearly issues around the suspension of magnetic supplies from China to India, which will affect our auto sector and several white goods manufacturers,” he said. “Some companies have submitted their applications, and we hope that pragmatic conditions will prevail and they will receive the necessary approvals.”