China The sudden export sanctions imposed on the rare economy magnets posed a serious threat to India’s auto manufacturing sector. Due to this, car production in the country was on the verge of completely stalled in a few days. These magnets are important components not only in electric vehicle motors but also in everyday car parts such as power windows and audio systems.
Import started after certificates
However, after India issuing certificates assured of compliance with China’s export sanctions, import of permanent magnets used in cars and other electronics from China has resumed. Officials said that the Directorate General of Foreign Trade (DGFT) has issued certificates for about 30 consignments, which confirmed that these permanent magnets will not be used for defense applications nor will they be exported to the US.
Industry warned
Inside the industry sources warned that there was a danger of stopping production due to restrictions imposed by China. In a report, citing documents from company officials and industry groups, it was reported that auto parts manufacturers had expected the rare meaning magnet’s stock to end by the end of May. The Society of Indian Automobile Manufacturers (SIAM) had urged the government to intervene to relax the restrictions on Beijing and warned of a crisis in the world’s third largest car market.
China has 90% control
China controls more than 90% of the global processing capacity of these magnets, which are necessary not only for electric auto motors but also for traditional car components such as power windows and audio speakers. Beijing imposed an export ban in April in response to US President Donald Trump’s tariff, in which companies needed to receive import permits from Chinese authorities. Whereas these restrictions mainly target magnets with high performance. The consignment of low-level magnets was also stopped amid confusion about how the new rules should be implemented.
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