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New Delhi: Mahindra are planning to manage rare earth magnet supplies with alternative sourcing channels for the coming nine months and will pursue engineering efforts in order to combat the shortage of the critical raw material amidst a growing product portfolio. This is development as the auto industry struggles with rare earth magnet supply, which is an important raw material in automotive production for both electric vehicles and internal combustion engines.
Following export restrictions imposed by China on key rare earth magnets, the supply chain has been bottlenecked and is affecting a lot of sectors. This includes not just the auto sector but also sectors like renewable energy.
Group Chief Financial Officer Amarjyoti Barua to Mahindra & Mahindra Group in his interaction with PTI, noted that the company has taken steps to build inventory through alternative sources in order to address the issue. He elaborated that FY26 had been managed, although they are looking to work on long-term solutions.
According to Barua, the strategy so far has worked and won’t be causing any trouble for the next nine months; they do want a more concrete plan. The growth they have planned cannot rely on the past tactics, and needs a lot of engineering effort, and the company’s engineers have been working on various methods to come up with a solution.
Mahindra CFO’s statement comes following Maruti Suzuki’s similar stance, which last week stated that their engineers are working to counter the rare earth magnet shortage and so far haven’t been impacted by it. Even Hyundai Motor India have said that their production hasn’t been hampered by the issues either.
