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News18
3 days ago
- Automotive
- News18
India's Car Industry Dodges China's Rare Earth Curbs, EVs To Feel The Heat The Most
Last Updated: Over 95% of vehicles in India run on internal combustion engines (ICE), which use very little rare earth material. India's auto sector is least impacted by the recent curb of rare earth magnets by China as over 95 per cent of vehicles in India's are internal combustion engine (IC) vehicles noted a report by Nuvama. Electric vehicles (EVs), along with hybrid passenger vehicles and electric two-wheelers, are likely to face the most impact from restrictions on rare earth materials (REMs). The report explained that while REMs are used in a wide range of industries, the biggest effect of the restrictions will be felt in the EV sector, particularly in EV motors. It stated 'The greatest impact of the above restriction in descending order will be electric PVs, hybrid PVs, and electric 2W. Conventional ICE vehicles will be least impacted". In India, EV adoption is still at an early stage, with penetration at just 7 per cent for two-wheelers and 3 per cent for passenger vehicles. Although EV sales have grown at a strong compound annual growth rate (CAGR) of 25 per cent between FY23 and FY25, the growth is on a low base. Therefore, even if sales decline, the overall effect on the Indian auto sector is expected to be limited. Most electric vehicles use Permanent Magnet Synchronous Motors (PMSMs), which rely on REMs to maintain a stable magnetic field, especially at high temperatures. The use of PMSMs is far higher in EVs compared to hybrid or ICE vehicles. As per the report, the average REM usage per vehicle is around 0.8 kg for electric vehicles, 0.5 kg for hybrid vehicles, and just 0.1 kg for ICE vehicles. Hence, the impact of the restrictions will be the highest on electric passenger vehicles, followed by hybrid passenger vehicles, and then electric two-wheelers. Conventional ICE vehicles will see minimal impact. In April, China imposed restrictions on the export of seven key rare earth elements: samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. These elements are essential in producing magnets like neodymium iron boron (NdFeB) and samarium-cobalt (SmCo), which are used in various applications including EVs. China currently controls over 90 per cent of global processing of rare earth elements, giving it significant control over the global REM supply chain. Though the restrictions are mainly aimed at the defence sector, the ripple effects will be seen across the auto, industrial, and aerospace industries. Auto manufacturers will now need to get end-user certification from the Chinese government to continue sourcing these materials. The process is expected to take around 45 days. First Published: June 17, 2025, 16:05 IST
Time of India
3 days ago
- Automotive
- Time of India
ICE-dominant India auto sector likely to be immune from China's rare earth export curbs: Nuvama
India, which has over 95 per cent of internal combustion engine (ICE)-driven vehicles, is expected to remain relatively unaffected by China's recent export restrictions on rare earth magnets (REMs), Nuvama said in a report. This is since REMs are especially used in permanent magnet synchronous motors or PMSMs, which are crucial for electric vehicles (EVs), due to the ability of these elements to maintain stable magnetic fields at high temperatures, the brokerage firm said in a research note. EVs, hybrid passenger vehicles, and electric two-wheelers are expected to bear the brunt of the above-mentioned export restrictions due to their usage of REM, the brokerage said, as reported by news agency ANI . As per the report, average REM usage per vehicle in EVs is 0.8 kg, followed by hybrids (0.5 kg) and ICE vehicles (0.1 kg). EV Adoption Still Nascent in India Despite a 25 per cent CAGR in EV sales from FY23 to FY25, the EV segment in India still operates from a low base. Current market penetration stands at 7 per cent for two-wheelers and 3 per cent for passenger vehicles, limiting the overall exposure of the domestic industry to rare earth risks, added the report. Notably, in April 2025, China placed export restrictions on seven rare earth elements, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium—vital for producing magnets used in EVs and other sectors. These materials are integral to neodymium iron boron (NdFeB) and samarium-cobalt (SmCo) magnets. Though the curbs primarily target the defence sector, their ripple effects are expected to be seen across other industries, including automotive, industrial, and aerospace. To continue sourcing these REMs, auto manufacturers must now obtain end-user certification from Chinese authorities—a process estimated to take around 45 days, potentially delaying production and supply chains, particularly for EV makers. While India's current ICE-heavy auto landscape offers a cushion against immediate disruption, the report underscores the vulnerability of the EV ecosystem to global supply chain shocks. As EV adoption rises, localised sourcing and motor technology diversification may become critical strategic imperatives.
Hindustan Times
4 days ago
- Automotive
- Hindustan Times
India's auto sector least impacted by rare earth curbs; EVs, hybrids hit hardest: Report
While rare earth magnets are utilised by a wide range of industries, the biggest effect of the restrictions will be felt in the EV sector. (Bloomberg) Notify me India's auto sector is least impacted by the recent curb of rare earth magnets by China as over 95 per cent of vehicles in India's are internal combustion engine (IC) vehicles noted a report by Nuvama. Electric vehicles (EVs), along with hybrid passenger vehicles and electric two-wheelers, are likely to face the most impact from restrictions on rare earth materials (REMs). The report explained that while REMs are used in a wide range of industries, the biggest effect of the restrictions will be felt in the EV sector, particularly in EV motors. It stated "The greatest impact of the above restriction in descending order will be electric PVs, hybrid PVs, and electric 2W. Conventional ICE vehicles will be least impacted". In India, EV adoption is still at an early stage, with penetration at just 7 per cent for two-wheelers and 3 per cent for passenger vehicles. Although EV sales have grown at a strong compound annual growth rate (CAGR) of 25 per cent between FY23 and FY25, the growth is on a low base. Therefore, even if sales decline, the overall effect on the Indian auto sector is expected to be limited. Also Read : UP Govt to set up ₹ 700 crore EV park in Kanpur with R&D and logistics connectivity Most electric vehicles use Permanent Magnet Synchronous Motors (PMSMs), which rely on REMs to maintain a stable magnetic field, especially at high temperatures. The use of PMSMs is far higher in EVs compared to hybrid or ICE vehicles. As per the report, the average REM usage per vehicle is around 0.8 kg for electric vehicles, 0.5 kg for hybrid vehicles, and just 0.1 kg for ICE vehicles. Hence, the impact of the restrictions will be the highest on electric passenger vehicles, followed by hybrid passenger vehicles, and then electric two-wheelers. Conventional ICE vehicles will see minimal impact. In April, China imposed restrictions on the export of seven key rare earth elements: samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. These elements are essential in producing magnets like neodymium iron boron (NdFeB) and samarium-cobalt (SmCo), which are used in various applications including EVs. China currently controls over 90 per cent of global processing of rare earth elements, giving it significant control over the global REM supply chain. Though the restrictions are mainly aimed at the defence sector, the ripple effects will be seen across the auto, industrial, and aerospace industries. Auto manufacturers will now need to get end-user certification from the Chinese government to continue sourcing these materials. The process is expected to take around 45 days. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 17 Jun 2025, 09:33 AM IST
Mint
4 days ago
- Automotive
- Mint
Indias auto sector least impacted by rare earth curbs; EVs, hybrids hit hardest: Report
India's auto sector is least impacted by the recent curb of rare earth magnets by China as over 95 per cent of vehicles in India's are internal combustion engine (IC) vehicles noted a report by Nuvama. {{^adFree}} {{/adFree}} Electric vehicles (EVs), along with hybrid passenger vehicles and electric two-wheelers, are likely to face the most impact from restrictions on rare earth materials (REMs). The report explained that while REMs are used in a wide range of industries, the biggest effect of the restrictions will be felt in the EV sector, particularly in EV motors. It stated "The greatest impact of the above restriction in descending order will be electric PVs, hybrid PVs, and electric 2W. Conventional ICE vehicles will be least impacted". In India, EV adoption is still at an early stage, with penetration at just 7 per cent for two-wheelers and 3 per cent for passenger vehicles. Although EV sales have grown at a strong compound annual growth rate (CAGR) of 25 per cent between FY23 and FY25, the growth is on a low base. Therefore, even if sales decline, the overall effect on the Indian auto sector is expected to be limited. Most electric vehicles use Permanent Magnet Synchronous Motors (PMSMs), which rely on REMs to maintain a stable magnetic field, especially at high temperatures. The use of PMSMs is far higher in EVs compared to hybrid or ICE vehicles. As per the report, the average REM usage per vehicle is around 0.8 kg for electric vehicles, 0.5 kg for hybrid vehicles, and just 0.1 kg for ICE vehicles. Hence, the impact of the restrictions will be the highest on electric passenger vehicles, followed by hybrid passenger vehicles, and then electric two-wheelers. Conventional ICE vehicles will see minimal impact. In April, China imposed restrictions on the export of seven key rare earth elements: samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. These elements are essential in producing magnets like neodymium iron boron (NdFeB) and samarium-cobalt (SmCo), which are used in various applications including EVs. China currently controls over 90 per cent of global processing of rare earth elements, giving it significant control over the global REM supply chain. Though the restrictions are mainly aimed at the defence sector, the ripple effects will be seen across the auto, industrial, and aerospace industries. Auto manufacturers will now need to get end-user certification from the Chinese government to continue sourcing these materials. The process is expected to take around 45 days. Topics You May Be Interested In
India Gazette
4 days ago
- Automotive
- India Gazette
India's auto sector least impacted by rare earth curbs as over 95% vehicles have IC engine; EVs, hybrids hit hardest: Report
New Delhi [India], June 17 (ANI): India's auto sector is least impacted by the recent curb of rare earth magnets by China as over 95 per cent of vehicles in India's are internal combustion engine (IC) vehicles noted a report by Nuvama. Electric vehicles (EVs), along with hybrid passenger vehicles and electric two-wheelers, are likely to face the most impact from restrictions on rare earth materials (REMs). The report explained that while REMs are used in a wide range of industries, the biggest effect of the restrictions will be felt in the EV sector, particularly in EV motors. It stated 'The greatest impact of the above restriction in descending order will be electric PVs, hybrid PVs, and electric 2W. Conventional ICE vehicles will be least impacted'. In India, EV adoption is still at an early stage, with penetration at just 7 per cent for two-wheelers and 3 per cent for passenger vehicles. Although EV sales have grown at a strong compound annual growth rate (CAGR) of 25 per cent between FY23 and FY25, the growth is on a low base. Therefore, even if sales decline, the overall effect on the Indian auto sector is expected to be limited. Most electric vehicles use Permanent Magnet Synchronous Motors (PMSMs), which rely on REMs to maintain a stable magnetic field, especially at high temperatures. The use of PMSMs is far higher in EVs compared to hybrid or ICE vehicles. As per the report, the average REM usage per vehicle is around 0.8 kg for electric vehicles, 0.5 kg for hybrid vehicles, and just 0.1 kg for ICE vehicles. Hence, the impact of the restrictions will be the highest on electric passenger vehicles, followed by hybrid passenger vehicles, and then electric two-wheelers. Conventional ICE vehicles will see minimal impact. In April, China imposed restrictions on the export of seven key rare earth elements: samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. These elements are essential in producing magnets like neodymium iron boron (NdFeB) and samarium-cobalt (SmCo), which are used in various applications including EVs. China currently controls over 90 per cent of global processing of rare earth elements, giving it significant control over the global REM supply chain. Though the restrictions are mainly aimed at the defence sector, the ripple effects will be seen across the auto, industrial, and aerospace industries. Auto manufacturers will now need to get end-user certification from the Chinese government to continue sourcing these materials. The process is expected to take around 45 days. (ANI)
