While China's curbs in rare earth magnets are not a cause for concern so far, it is a wake-up call for India to pursue diversified technology pathways and greater self-reliance, according to Toyota Kirloskar's Vikram Gulati.
“This is a global issue. China currently controls around 90% of the global magnet supply. It goes beyond just electric vehicles—internal combustion engine vehicles are also impacted,” Gulati, chairman of SIAM Economic Research Group and country head and EVP, corporate affairs and governance at Toyota Kirloskar Motor, told NDTV Profit.
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While the threat is real, the Indian government has been offering “excellent support” to the industry, he acknowledged. “The government is supporting the industry in a strong way. We have received immense cooperation, and at this point, there is no cause for concern.”
Gulati stressed that the rare earth situation is a critical reminder for India to accelerate domestic capabilities. “The path towards a cleaner, greener future must involve multiple technologies. We are already self-reliant in sectors like ethanol and compressed biogas,” he said.
As for Toyota Kirloskar, operations remain stable, even as he noted that this is a pan-industry issue. “There is no disruption currently, and the government is playing a key role in keeping the situation under control,” he added.
He also pointed to policy efforts such as Production-Linked Incentives as steps in the right direction to reduce dependence on a single country for critical inputs.
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