India’s EV Future at Risk Due to China’s Rare Earth Magnet Curb.

India’s electric vehicle (EV) growth story is facing a serious roadblock — and it all comes down to tiny but powerful components called rare earth magnets. What’s Happening? China, which makes 90% of the world’s rare earth magnets, has tightened export rules. These magnets are critical for EV motors (used in 2-wheeler and 4-wheeler electric vehicles). Without them, EVs simply won’t run. Why It Matters: Indian EV makers like TVS Motor and Bajaj Auto are warning of production halts because shipments from China have been stuck since April 4. Around 30 shipments are still waiting for Chinese clearance. What’s the Impact? • EV prices may rise by up to 8% to cover rising input costs • New product launches may get delayed • Margins could shrink by 0.5% to 1% • The price-sensitive 2-wheeler EV segment will suffer the most Why Not Make Them in India? India has the 5th largest rare earth reserves, but we produce very little (just 2,900 metric tonnes in 2023). We import the rest — without a local ecosystem for mining, refining, or making magnets, we're vulnerable. What Can Be Done? India must urgently build its own magnet supply chain. That requires: • Government support • Investment in mining and refining • Technical expertise In Short: EVs are the future, but without rare earth magnets, that future could stall. To protect our EV industry, India needs to reduce its dependency on China — fast.