Indian automakers face a crisis as China refuses to engage on rare earth magnet supply talks.

By Aniket Chakraborty July 3, 2025 Arrow INDIA NEWS

Despite Indian industry delegates getting visas, Beijing has denied official meetings.

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Rare earth magnets are vital for EVs, home appliances, and clean energy components.

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Automakers now explore expensive Plan B options like importing fully assembled parts.

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This workaround hikes costs due to import duties, air freight, and logistics challenges.

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Prices of new vehicles and EVs may soon rise as OEMs pass the burden to consumers.

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Tier-II and Tier-III suppliers are hit hard, with many automakers running low on stock.

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Experts blame geopolitics, as China controls over 90% of global rare earth processing.

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The Indian auto sector urges domestic magnet assembly, recycling, and processing push.

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Until then, the rare earth standoff could reshape India's EV ambitions and consumer pricing.

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