Overview

• More than two weeks after Beijing signaled an easing, supplies of critical magnets have not resumed, forcing day‑to‑day inventory management across the sector.
• Ashok Leyland MD Shenu Agarwal said there is intent from Beijing yet no change on the ground, while TVS Motor’s K N Radhakrishnan described ongoing operations as challenging.
• Leading carmakers including Maruti Suzuki, Tata Motors, and Mahindra & Mahindra report production continues for now, with some inventory stretching into the December quarter and concerns rising over festive‑season bottlenecks.
• Under rules in place since April 4 that require end‑use assurances, approvals remain slow in a market dominated by China’s magnet output, and a senior supplier said licences could arrive within a month.
• New Delhi is weighing incentives to build a domestic magnet ecosystem and is pursuing overseas critical‑mineral assets through KABIL, though industry expects diversified supply chains to take years.