India VS China: China has done such an act … Shadow crisis on the future of India’s automotive sector, what is the next? – China stops costs
The future of the Indian automotive sector is cloudy because China has stopped a rare matter (India import from the US). This thing is very important for electric vehicles and traditional vehicles. In direct words, it cannot be prepared without any vehicle. This thing is used in the computer ranging from motor and steering wheel to brakes, wipers and audio equipment. Without it, the production of vehicles will be stopped.
Due to changes in China’s export rules, companies are saddened by the delay in exporting and warned that if the supply is not recovered, it will be a barrier to vehicle production. The rare thing we are talking about is the name of Neotymium-Diran-Boron (NDFEB). It is a rare sex metal that is made by China in countries around the world.
Chinese crisis due to Chinese activities
China produces more than 90% of the world’s rare earth magnetic metal. It implemented strict export control rules in April. Under the new rules, exporters must obtain a government license and comprehensive final application certificate from buyers before shipping. Despite this, when the procedures are done, the exporter must wait a long time for approval. According to the economic term, many of the cargo that goes to India is trapped in Chinese ports, and there is no movement.
Some European companies have been approved, but Indian companies have not yet obtained export, which has increased the concern that production pressure will begin. Occupational officials say the current inventory will end in early June.
What action does India take?
In response, the delegation of Indian Automobile Manufacturers (Siam) and Auto Equipment Manufacturers Association (ACMA) is preparing to visit China. Their purpose is to meet Chinese authorities and get quick approval. The ET report said that the Ministry of Commerce and Outgoing of India is actively supporting the connection through diplomatic channels.
Why is this metal important to India?
India imported 460 tonnes of rare materials in the fiscal year 2024, all from China and planned to import 700 tonnes this year. There is no other option today, which makes Indian productive taxes unsafe. India takes forward domestic production plans to reduce long -standing dependence. A meeting is scheduled for June 3, in which the Ministry of Industry will finalize the support infrastructure for magnetic construction, including encouragement and infrastructure.
