Tata Motors has reported that it is not currently experiencing any supply chain disruptions due to recent rare earth metal export restrictions. The company’s Chairman confirmed that stable supplies and strategic inventories have been maintained. As India’s largest electric vehicle manufacturer, Tata Motors is actively exploring alternative sources for rare earth metals to mitigate potential future issues. The move is driven by China’s dominance in the global rare earth market, controlling a significant portion of both mining and processing. Tata Motors has implemented proactive measures to develop alternative supply chains and build strategic inventories. Furthermore, the company plans to split its commercial vehicle and passenger vehicle businesses into separate listed entities by the end of 2025, a strategic move to focus on EV and green mobility. Tata aims for 30% EV penetration in its passenger vehicle market by 2030 and plans to expand its bus portfolio under the PM e-bus Seva initiative, as well as targeting hydrogen powertrain truck production. The Indian government is also considering incentives to boost domestic manufacturing capabilities in this sector. The Ministry of Heavy Industries is drafting a scheme that would fund the difference between the cost of locally made magnets and imported ones, aiming to promote cost parity. India is also working on enhancing its capability to provide rare earth minerals to the world. The National Critical Mineral Mission has been launched to achieve self-reliance in the sector, with new projects focused on exploring neodymium, a key rare earth metal for the auto industry.
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