Auto Stocks Trade Mixed As Discussions With China On Rare Earth Minerals Underway
At least 10 applications are currently under review in China, and no licences have been granted as of now, said sources.
Shares of Tata Motors Ltd., Mahindra & Mahindra Ltd., Maruti Suzuki India Ltd. and other automakers were in focus on Wednesday after China signaled it may allow Indian auto component manufacturers to secure licences for accessing rare earth materials, according to people familiar with the matter. This comes at a time when local carmakers are ramping up production while inventories last.
At least 10 applications are currently under review in China, the people said, requesting anonymity as the talks are private. These applications have reportedly received favourable endorsements from the Chinese embassy — a key requirement for obtaining a rare-earths licence from China’s Ministry of Commerce. The Indian embassy in Beijing is also actively involved in facilitating the approval process.
In May, the Society of Indian Automotive Manufacturers, in consultation with India’s original equipment manufacturers, compiled and submitted to the government a list of over 30 eligible suppliers for licence consideration. Most of these are Tier-I suppliers affiliated with the Automotive Component Manufacturers Association of India.
As of now, no licences have been granted, the people said. Approvals hinge on suppliers meeting end-use conditions, specifically for domestic, non-military applications.
Phone calls to India’s Ministry of Heavy Industries went unanswered, while SIAM declined to comment, citing the sensitive nature of the discussions.
Auto Stocks Share Price Today
As of 09:15 a.m., the Nifty Auto and the benchmark Nifty 50 were trading at 0.20% and 0.05%, respectively:
TVS Motor rose 0.80%
Mahindra & Mahindra rose 0.71%
MRF up 0.67%.
Maruti Suzuki dropped 0.34%
Ashok Leyland slipped 0.12%.
Bajaj Auto down 0.08%
