Representatives of the auto industry have pressed on the government to secure critical raw materials such as rare earth magnets amid shifting geopolitical alignments and changing trade dynamics.
At the annual session of the Automotive Component Manufacturers Association of India (ACMA), automakers and industry leaders came together to share ways to position India as a reliable and competitive global hub for mobility components so that a resilient automotive supply chain may be built.
"Critical raw materials, the availability of rare earth magnets, semiconductors and battery inputs is becoming a strategic issue that requires national focus, said Shradha Suri Marwah, ACMA president, at the conclave.
While opportunities are immense, she added, challenges are equally daunting, including geopolitical volatility, trade wars, tariff escalations, and export restrictions.
Also Read: Shortage of rare earth magnets puts auto industry in jeopardy
Stressing on “closer government partnerships to secure critical raw materials”, Marwah said wider international alliances are necessary to access newer markets and strengthen the industry's overall competitiveness.
Creating alternative supply chains by partnering with resource-rich countries is the need of the hour, added Shailesh Chandra, president of the Society of Indian Automobile Manufacturers (SIAM).
"While business-to-business relations are important, governments' intervention needs to be a catalyst for such partnerships," Chandra asserted, alluding to partnerships that leverage the strength of each country, be it availability of raw materials or technologies.
Referring to global trade headwinds, Chandra said the Indian automotive industry is deeply integrated with global networks, and is being impacted by as well as responding to these shifts.
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