China’s export ban pushes Indian auto industry into deep crisis

China has imposed a ban on the export of rare earth materials to India, triggering alarm across the Indian automobile sector. The move has placed immense pressure on electric and traditional vehicle production, revealing India’s heavy dependence on Chinese mineral supplies, reported 24NewsHD TV Channel on Sunday.

The ban is seen as a serious economic blow, with critical shortages already impacting the supply of rare magnets essential for electric vehicles (EVs). The disruption in rare earth supply has created shockwaves throughout India’s manufacturing base, slowing down production and creating concerns over rising unemployment and factory shutdowns.

Industry insiders warn that both the electric and conventional automobile sectors are facing an unprecedented challenge. China, which dominates the global supply of rare earth elements, has left India scrambling without a viable alternative.

The automotive sector, one of India’s flagship industries, is now pushing the government for immediate intervention. Experts predict that car prices may soar and industrial output will continue to decline if swift countermeasures are not adopted.

The development casts a shadow over Prime Minister Narendra Modi’s “Make in India” campaign, raising fresh questions about the country’s industrial self-reliance. Critics are asking whether the government underestimated the risks of overdependence on foreign supply chains, particularly China.

Reporter: Ahmad Mansoor