Auto Dealers Worry Rare Earth Magnet Crisis Will Hit Supplies

If Chinese curbs don't ease, production may be disrupted, hurting inventories at dealerships

- Ayaan Kartik

Automobile dealers have started ringing the alarm bells about the rare earth magnet crisis affecting the supply of vehicles in the coming months, nearly 100 days after China restricted the export of the critical component.

For the first time since April when the rare earth magnet crisis began, India's largest dealers body, Federation of Automobile Dealers Association (Fada), voiced its concerns over supply of vehicles from automakers in its outlook for the coming months.

Fada's concerns about potential supply snags come even though automakers haven't yet reported any production cuts after stocking up on the permanent magnets in March and April.

However, if the Chinese curbs don't ease in the coming months, production could yet be disrupted, hurting inventories at dealerships.

Fada president C.S.Vigneshwar told Mint that automakers have not yet conveyed the full situation to dealers, which is adding to the uncertainty.

R ar m "We have been in touch with the automakers and industry bodies but there has been very little information conveyed about how the situation is evolving. While there is enough stock to meet demand for pa now, we need to know the supply situation," Vigneshwar said.