How Indian auto companies survived a rare earth scare

Bajaj Auto warned of a month-long halt to EV production, Ather guided for a 7-day factory dispatch hit, and Maruti Suzuki reportedly staggered the production of the e-Vitara, to deal with the crisis.

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Tata Motors and its British subsidiary Jaguar Land Rover mentioned supply chain as a key risk in their annual reports for the first time.

With supply chain emerging as a key risk for nearly every automaker in 2025, the long road to building an alternative has begun for many, forcing them to explore multiple technologies.

Charting Own Path

Arun Malhotra, an auto industry veteran, said the year has been a lesson for automakers as they figure out how to diversify their supply chains. “Automakers are more conscious of geopolitical risks, especially after the rare-earth crisis, so they are better equipped to tackle situations,” Malhotra said. “One lesson everyone has learned is to not rely on one supplicr or one couniry for a key component.”

The broad contours of derisking supply chains are becoming clearer.