Maruti Suzuki, the largest producer of passenger automobiles in India, claims that there has not been any impact on vehicle production from the supply chain problem thus far, even as the Indian automobile industry is collapsing under pressure and pressing the panic button, claiming that the scarcity of rare earth magnets will have a severe impact on the sector with disruptions in production. The lack of rare earth magnets has not had any impact on Maruti Suzuki India's output as of right now, according to Chairman R. C. Bhargava, speaking on Monday.

PTI quoted Bhargava as saying that the global scarcity of the rare earth magnets, which are essential for the manufacture of automobiles, is not presently having an impact on the auto major's production. He also reportedly said that the manufacturing operations at the nation's biggest automaker are proceeding as expected.

Maruti Suzuki Chairman's remarks are made in the context of the limitations that the Chinese government has placed on the export of rare earth materials and associated magnets since April 4 of this year. For seven rare earth elements and associated magnets, China requires a special export permit. The magnets are used in a variety of industries, including clean energy, home appliances, and cars, and China dominates the global processing capacity for them at over 90%.

The future of the rare earth magnet problem?

Bhargava replied, "There would not be a problem if the licenses come through, as they are supposed to," when questioned about whether the firm predicts a manufacturing crisis in the coming months as a result of the matter.

In the meanwhile, the Indian auto industry has requested the government to speed up the import of rare earth magnets from China, which are utilized in a variety of sectors, including passenger vehicles.

Several local Chinese providers have already approached the Chinese government for authorization through their domestic suppliers, according to industry sources. Nonetheless, the industry is concerned that no permissions have been granted as of yet. The scarcity of vital raw materials utilized in several industries, notably the automobile sector, is causing a lot of pressure on many businesses.

Samarium, gadolinium, terbium, dysprosium, and lutetium are among the essential materials used in electric motors, braking systems, smartphones, and missile technology.

Read Also: Citroen Marks 4 Years in India with Benefits Worth ₹2.8 Lakh
Get the latest Bollywood entertainment news, trending celebrity news, latest celebrity news, new movie reviews, latest entertainment news, latest Bollywood news, and Bollywood celebrity fashion & style updates!