National strategy on critical materials required to deal with rare magnet shortage: ACMA
The auto component industry body Automotive Component Manufacturers Association of India (ACMA) has sought a national strategy on critical materials to secure electric vehicle production in the country as shortage of rare earth magnets pose potential production losses to the industry. ACMA President Shradha Suri Marwah has assured that the industry is agile and has started to work on alternative solutions to tackle the rare earth shortages.
She highlighted that despite various geopolitical issues and supply chain challenges, the auto components industry reported a turnover of $80.2 billion for FY2025, a growth of around 10 per cent as compared with FY2024. The industry has almost doubled in past five years growing at a CAGR of 14 per cent from FY20 to FY25. She emphasized that the strong domestic demand, rising exports and increasing value addition has supported the industry growth.
Besides, she noted that as India transitions towards new-age mobility, the industry is making the necessary strides in investments, technology and localisation to serve both domestic and global markets effectively.
