‘No Panic Yet’: Tata Motors Says Rare-Earth Curbs Haven’t Hit Production

Tata Motors is closely monitoring the global rare-earth supply situation and exploring alternative sourcing options, but the company sees no immediate cause for concern despite China’s export restrictions, Reuters reported on Tuesday.

Speaking at an industry event in Mumbai, Chief Financial Officer P.B. Balaji stated that carmaker is not witnessing any disruption in its manufacturing operations so far.

“Currently, I think there's no panic because we believe the supplies are coming through. There's no production curtailment. Nothing is being planned at this point in time,” Balaji told Reuters. He also maintained that the company is actively looking into alternate technologies and suppliers to stay ahead of any potential bottlenecks.

Also Read: What is a Rare Earth Magnet and How Is It Impacting The Indian Automotive Industry | Republic World

China’s Export Curbs

China, which dominates over 90% of the global rare earth supply chain, in April 2025 tightened export controls on rare earth magnet technologies, citing national security concerns. The new framework requires export permits and end-use statements, particularly prohibiting use in defense or re-export to the US. While it is not a blanket ban, the move has disrupted the automotive supply chain of many countries, including India.

Rare-earth magnets are widely used in components such as, Electric motors (particularly in EVs and hybrids), Power steering systems, Braking systems, Speedometers, Automatic transmission kits, Cooling fans, Ignition coils, Speakers, Sensors, and other electronics.

For Indian automakers, this adds uncertainty around pricing and access to key components, especially as demand for electric vehicles continues to rise. Most EV motors depend on rare earth magnets to deliver efficiency and torque in a compact design.

Earlier this month, Maruti Suzuki, India’s top automaker, reportedly reduced near-term production targets for its electric e-Vitara SUV by two-thirds due to rare-earth material shortages, according to Reuters.