Not So Rare Anymore

In a reprieve for Indian automakers, supply of rare earth magnets from China has begun easing

- By MANU BALACHANDRAN

AFTER MONTHS OF uncertainty, India's automakers can breathe a sigh of relief.

It all started in April this year, after China, the world's largest maker of rare earth magnets—a key component in automotive manufacturing—decided to impose sanctions on their export, following the trade war with the US. While that remained the trigger, China also chose the opportunity to revisit exports to India, enforcing stricter sanctions on its neighbours with whom geopolitical tensions had been simmering.

The decision meant that India’s automakers, the fourth largest in the world, were staring at a complete halt in production, particularly ahead of the festive season that accounts for about 40 percent of the annual sales.