AUTO INDUSTRY SEEKS GOVERNMENT'S INTERVENTION FOR IMPORT OF RARE EARTH FROM CHINA

The automobile industry in India has asked for government support in expediting approvals from the Chinese government for importing rare earth magnets used in passenger cars. Various domestic companies have already sought approval from the Chinese government through their local suppliers in China, however no approvals have been granted so far China controls over 90 per cent of global processing capacity for the magnets which is used across multiple sectors including automobiles. The Chinese government has put restrictions on exports of rare earth elements thereby causing disruptions in the manufacturing of passenger vehicles in India. If this issue is not resolved, then it will affect companies like