Prime Highlights:
- Indian bus assiduity faces product detainments as rare earth attraction significances from China hit a tailback .
- A delegation of Indian automakers and suppliers is planning a visit to China to resolve the extremity.
Key Facts:
- China controls over 90 of global rare earth attraction exports.
- India’s bus sector is facing critical dearths, especially in EV factors.
- Assiduity leaders are urgently seeking politic and policy results.
Key Background
India’s bus assiduity is facing a major trouble due to China’s tightening control over exports of rare earth attractions critical factors used in electric motors, detectors, power windows, speakers, and more. These attractions are essential to both internal combustion and electric vehicles. Since April 2025, China has assessed stricter controls on the import of medium and heavy rare earth accoutrements , taking foreign buyers to give detailed end- use attestation, gain import licenses, and seek blessing through their delegacies in China. As a result, numerous Indian shipments have stalled at Chinese anchorages, dismembering the force chain for vehicle manufacturers.
China presently dominates global rare earth product and processing, counting for around 70 – 80 of rare earth accoutrements and over 90 of attraction manufacturing. India, which imported around 460 tonnes of these attractions worth over ₹ 300 crore in FY 2024 – 25, is formerly floundering to meet its projected demand of over 700 tonnes this time. With the unforeseen halt in significances, Indian automakers similar as Maruti Suzuki, Tata Motors, Mahindra, Hyundai, Kia, Hero MotoCorp, TVS, and Bajaj Auto have begun raising admonitions.
product dislocations could begin as beforehand as July if the situation is n’t resolved. Bajaj Auto has formerly indicated that its EV product is at threat, while Maruti Suzuki has reportedly cut down its short- term EV manufacturing targets. The extremity is also affecting bus element manufacturers who depend on steady inventories of rare earth accoutrements .
In response, the Indian government is easing exigency measures. The Directorate General of Foreign Trade is expediting the processing of end- use instruments, and a high- position delegation of Indian assiduity leaders is preparing to travel to China to bandy the matter with Chinese authorities. Meanwhile, the Ministry of Heavy diligence is drafting plans to incentivize domestic rare earth processing and reduce reliance on significances in the long term.
still, setting up domestic manufacturing and sourcing druthers will take time. For now, the assiduity’s stopgap rests on politic accommodations and quick intervention to renew the inflow of critical accoutrements . Global enterprises are also growing, as countries like the U.S., Japan, and those in the EU are also dependent on Chinese exports of rare worlds.
