Overview
- Two weeks after diplomatic signals from Beijing to ease curbs, Indian buyers say rare-earth magnet shipments have not resumed, with Ashok Leyland and TVS describing day-to-day strain.
- Automakers are stretching inventories to avoid stoppages, with Mahindra stocked through the December quarter and some companies exploring tweaks to magnet compositions for short-term continuity.
- Heavy Industries Minister H. D. Kumaraswamy said an incentive scheme to subsidize domestic magnet manufacturing is slated within 15–20 days, with a Rs 1,345 crore framework under consideration and cabinet approval required if support exceeds Rs 1,000 crore.
- According to officials, the government plans a temporary allowance for electric bus and truck makers to import traction motors with rare-earth magnets without losing PM E‑Drive incentives, pending a broader supply resolution.
- Industry groups urged deeper government engagement and diversified sourcing, as the mines ministry advances bilateral deals and KABIL’s overseas asset push, while a Hyderabad supplier pledged 500 tonnes this year and companies test rare-earth-free alternatives that carry performance trade-offs.