Mahindra & Mahindra is taking proactive steps to address the rare earth magnet shortage disrupting key automotive components, particularly in electric vehicles, after China imposed export restrictions on these materials. Group CFO Amarjyoti Barua said the company has secured alternative supply channels for the near term.
According to M&M’s leadership, these measures are expected to safeguard their supply chain through fiscal year 2026, covering the next nine months. “FY26 is more or less managed,” Barua confirmed, noting that tactical responses have thus far “panned out well.”
Looking beyond immediate solutions, Barua added that the company is now shifting focus to medium- and long-term engineering strategies to mitigate future risks. He emphasized that, given M&M’s ambitious growth plans, more robust technical responses will be required.
Industry-wide, companies like Maruti Suzuki and Hyundai Motor India report no immediate production impact. Both automakers say their engineering teams are monitoring the situation and are prepared to intervene if needed.
The broader auto ecosystem in India, heavily reliant on China for rare earth materials, has raised concerns about potential production slowdowns. Analysts warn that without domestic production alternatives or diversified supply chains, automakers could face significant disruptions.
In response, M&M is exploring innovation-led solutions—such as using alternative light rare-earth or ferrite materials and even investigating domestic magnet production partnerships. These efforts align with wider calls for India to develop local strategies to minimize dependence on imported rare earths.
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