Tata Motors working with govt, looking alternate sources for magnets: Chandrasekaran
Mumbai, Jun 20 (PTI) Tata Motors is working with the government and is also taking steps to procure magnets from alternate sources in the wake of China restricting exports of rare earth elements, company Chairman N Chandrasekaran told its shareholders on Friday.
Responding to queries from shareholders on the impact of China's move to restrict exports of rare earth elements and shortage of magnets, he said, "As of now, this is not a concern, but this is something that we are watching very carefully."
"As of now, we are okay. We are not facing issues...We are able to source the magnets that we need, and also we have plans for having the right level of inventory. We are working with the government. Also, we are working on sourcing from alternate sources," Chandrasekaran noted.
China's restrictions on the export of rare earth elements and related magnets are affecting the domestic auto and white goods sectors.
The automobile industry had sought government support in expediting approvals from the Chinese government for importing rare earth magnets used in various applications, including passenger cars.
To another query on the impact of the ongoing Iran-Israel war on the company's business, he said, "It is very difficult to answer what will be a war kind of situation look like."
However, he said Tata Motors group's three firms -- commercial vehicle, passenger vehicles and JLR -- have a very strong platform.
"They will be able to tide over any of these geopolitical issues in the short term but are completely ready and poised for excellent growth and leverage the opportunity that this industry has to offer," Chandrsekaran asserted.
Earlier in opening address, he said that going forward, volatility will continue to mark economic cycles -- from widespread geopolitical conflicts, military escalations, the redrawing of supply chains and tariff regimes, to AI and energy transition. Nowhere are all these disruptions visible more than in the automotive sector.
"Given the enormous amount of work we have done over the past few years -- from simplifying the businesses to making big strategic bets to strengthening our financial position -- our businesses are structured to not just handle this environment, but to thrive," he asserted.
Responding to a query on passenger vehicle business expansion in international markets, he said, "This is something that we are always in discussions but we are waiting for the right geopolitical environment to be able to launch but we are getting prepared."
To another query on the completion of demerger of Tata Motors' commercial and passenger vehicle verticals into separate entities, Chandrasekaran said, "We think the demerger will happen in the last quarter of this year.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
34 minutes ago
- Time of India
'Involved in development of ballistic missiles': FATF calls out Pakistan for flouting norms; India may use dossier to push for sanctions
A new report from the Financial Action Task Force (FATF) has cited a case involving Pakistan's missile development programme, referencing a shipment seized by Indian customs officials in 2020 that was bound for Port Qasim in Karachi. Tired of too many ads? go ad free now The FATF case study outlines how dual-use goods, including equipment critical for ballistic missile technology, were mis-declared in export documents and linked directly to Pakistan's National Development Complex, which is known to be involved in the development of long-range ballistic missiles. The FATF report reveals that Indian investigators intercepted a cargo ship falsely declaring autoclaves, equipment used for high-energy materials and missile motor components. 'The Bill of Lading of the seized cargo provided evidence of the link between the importer and the National Development Complex,' the report noted. This latest disclosure comes as FATF increases its scrutiny of state-sponsored terrorism, particularly following the April 22 terror attack in Pahalgam, Kashmir, which left 26 dead. In a public condemnation, FATF said: 'This, and other recent attacks, could not occur without money and the means to move funds between terrorist supporters.' As per PTI sources, India is likely to use this FATF disclosure in its dossier to push for Pakistan's return to the FATF grey list. The upcoming Asia Pacific Group meeting in August and the FATF plenary in October may see renewed calls for sanctions or monitoring. According to officials cited by PTI, the inclusion of 'state-sponsored terrorism' in the FATF's upcoming analysis marks a significant step in acknowledging Pakistan's involvement in funding and facilitating terror operations. Tired of too many ads? go ad free now The incident flagged by FATF, which occurred in February 2020 at Kandla port, saw authorities act on intelligence regarding a suspicious Hong Kong-flagged ship, Da Cui Yun, that had departed from China's Jiangyin port, TOI had reported. Officials seized a massive pressure chamber described as a pipe-like object, 35-40 feet in length, now confirmed to have potential ballistic missile applications. Experts from the Defence Research and Development Organisation (DRDO) joined a high-level investigation into the cargo, amid tight-lipped responses from customs due to the national security implications. Also read: The FATF report also highlighted the growing global risk from proliferation financing (PF), especially concerning state and non-state actors acquiring dual-use technologies for weapons of mass destruction (WMD). 'The proliferation of weapons of mass destruction and related financing represents a significant threat to global security and the integrity of the international financial system,' the report warns, adding that failure to implement effective controls could allow actors to exploit weaknesses in global export and financial systems.
Time of India
an hour ago
- Time of India
JLR to face $2.1bn tariff hit: Chandra
Tata Group chairman N Chandrasekaran Mumbai: Tata Motors-owned British luxury carmaker Jaguar Land Rover faces potential tariff impacts of 1.6 billion pounds (about $2.1 billion) from new US trade measures, Tata Group chairman N Chandrasekaran said. He noted that ongoing mitigation plans aim to reduce this impact to 600 million pounds. "Tariff is a major issue, primarily for JLR," said Chandrasekaran at Tata Motors ' 80th AGM on Friday. "Without intervention, JLR's tariff rate would have gone from 2.5% to 27.5%. With the US-UK trade deal, the 27.5% tariff will drop to 10%. The overall impact even of the 10% will be 1.6 billion pounds. But JLR has taken a lot of steps through which it will be able to reduce the impact to 600 million pounds." This AGM marked Chandrasekaran's first appearance at a shareholder meeting after the Air India flight 171 crash on June 12, having missed shareholder meetings at Tata Consumer Products and TCS. The meeting held additional significance as it was the final AGM for Tata Motors before its division into two listed companies by year-end, focusing on passenger vehicles and commercial vehicles, respectively. Chandrasekaran also assured shareholders that China's export restrictions on rare earth magnets pose no immediate supply concerns, while the company explores alternative sourcing options. Rare earth elements play a crucial role in the production of permanent magnets, which are essential components in electric motors. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
India.com
an hour ago
- India.com
Israel Iran war: What does India import from Iran? THESE kitchen essentials may get costlier if war escalates
Tensions between Iran and Israel are at their highest peak right now. Both countries are attacking each other with missiles and drones and it seems like a full-fledge war could break out at any time. Thoight India may not be directly involved in the Iran-Israel conflict, but its economy could suffer if things get worse. Therefore, it's important to understand how it might impact India. India has trade relations with both Iran and Israel. This means India buys and sells many goods to and from both countries. So, if war breaks out between them, it will not create problem for the Middle East but India could also feel the heat, especially in terms of prices and supply disruptions. What India buys from Iran In the past, Iran was one of the biggest suppliers of crude oil to India. But after US sanctions in 2019, India stopped importing oil from Iran. However, India imports liquefied petroleum gas (LPG) and liquefied natural gas (LNG) from Iran, the fuels used in homes and industries. India also imports dry fruits like almonds, pistachios, and dates from Iran. Along with that, Iranian saffron is considered one of the best in the world, India imports that too. Vegetable products such as gums, resins and lacquers are also imported. Iran is also famous for its handmade carpets and handicrafts. Besides this, India imports methanol, petroleum bitumen, and other chemicals from Iran, which are used in industries and construction work. It also imports Salt, sulphur, clay, stone, plaster, lime and cement. What India sells to Iran Iran is one of the biggest buyers of Indian Basmati, having purchased over 8.55 lakh metric tonnes in 2024–25, worth nearly Rs. 6,374 crore. In strong trade years, Iran has made up 30 to 35 per cent of all Basmati exports from India. On the other hand, India exports several important items to Iran including basmati rice, tea, sugar, medicines, and machinery. Rice (Basmati), tea, sugar, and fresh fruits are significant export items. A notable quantity of drugs and pharmaceuticals are also exported to Iran. India exports various types of machinery, electrical machinery, and electronic equipment to Iran. Artificial jewelry, rubber products, and certain chemicals are also part of the export basket. Processed minerals are another category of goods that India exports to Iran. What could go wrong if war breaks out If the conflict between Iran and Israel turns into a full-blown war, global oil prices could shoot up. That would directly affect India, since we import most of our crude oil from other countries. This could make petrol and diesel more expensive, and when fuel prices go up, the cost of transporting goods also rises. This would lead to higher prices for food, groceries, and daily essentials. In short, even though the war would be happening far away, its impact could be felt in every Indian household through higher inflation and supply shortages.
