Tata Motors Eyes Rare Earth Magnet Sources, have enough shares: Chandrasekaran | Mint

Tata Motors Ltd has enough stock rare earth magnets, and the company is looking for new sources amid China’s export tires, said Natarajan Chandraca caran, chairman of Tata Sons. “We are in order from now on; we have no problems in the face. We can acquire the magnets we need, and are working to obtain alternative sources of rare nature magnets,” Chandraceskaran said at the 80th annual shareholders’ meeting on Friday. “We are working with the government (on the issue).” Tata Motors, India’s largest car manufacturer by revenue, is one of the many businesses affected by China’s export ties on rare nature magnets, which are critical in car, air and space and electronic industries. Although the curbs were imposed in April as a trade war between the US and China and flared, the two opponents have since reached an agreement. However, exports to India remain blocked, and domestic companies are pushing the government to engage Chinese officials to facilitate supplies. Chandrasekaran’s remarks on the rare Earth Magnet edition come a day after RC Bhargava, chairman of Maruti Suzuki India Ltd, the second largest car manufacturer of India, said that the company’s shares of rare nature magnets will last until July. On June 11, Reuters reported that Maruti Suzuki cut with two-thirds on the short-term production targets for his maiden van Electric Vehicle e-vitara due to rare earth shortages. The e-vitara is expected to start before the end of September. Out of the 54 shareholders who asked questions on Friday’s virtual AGM, a fourth referred to rare nature magnets and the situation on the US tariff front. The chairman also addressed the concern of shareholders at US rates. “The tariff impact will be mainly on Jaguar country Rover. Tariff rose from 2.5%to 27.5%, and below the UK-US FTA is the tariff 10%. The total impact would have been 1.6 billion pounds. But due to the steps taken by JLR, the impact dropped to 600 million pounds, which was in the Margin-Guidance.” JLR, the British subsidiary of Tata Motors, cut its guidance on turnover growth to 5-7% for FY26 from 10% mentioned earlier. The company attributes the reduction to the impact of the rates and the slowdown in the Chinese market. In an interview with Mint earlier, Shailesh Chandra, managing director at Tata Motors -passenger vehicles and Tata passengers -electric mobility, said rare earth is needed for both domestic combustion motor vehicles and electric vehicles. China said on April 4 that companies seeking rare earth magnets must submit applications with end -users’ certificates to the Chinese embassy, ​​which then go to the provinces where magnets are obtained. After approval of provincial authorities, the Chinese Ministry of Trade must approve the applications. So far, no Indian company has received approval to receive the consignments of these critical items. According to the estimates of the industry, it takes about 45 days to get approval. The executive director of Bajaj Auto Ltd, Rakesh Sharma, said during the company’s earnings call on May 29 that the industry will face from July if the situation is not resolved. However, the leadership of Tata Motors remains confident that the situation is under control and is likely to be resolved. Chandrasekaran said the Tata group would continue its investments in the electric vehicle enterprise and are likely to reach the 30% penetration target in its overall portfolio before 2030. This was Chandrasekaran’s first appearance on a Tata Group Company annual general meeting this year. Earlier, he skipped the AGMs of Tata Consumer Products Ltd (TCPL) and Tata Consultancy Services on June 18 and 19, while the Top officials of the Tata group attended the crisis over the Air India accident in Ahmedabad on June 12. The AGMs of TCPL and TCs are chaired by board members PB Balaji and Keki Mistrry, respectively. Chandrase caran also achieved the deaths due to the AI ​​accident and requested the board members and shareholders to observe a minute of silence. “My thoughts are with family and friends who have lost their loved ones, and I know, we felt the same,” Chandrase caran said in his opening speech. “It was a long and disturbing week for all of us as a nation, as a group and on a very human level, and at the same time a very deep sadness, sadness and uncertainty.” The chairman also spoke of Ratan Tata, the group’s chairman emeritus who passed away last October. ‘I had the opportunity to constantly share updates with Ratan Tata over the last few years about the business. While we all miss him, I want you to know that he would have been very proud of the turnaround of the business, because Tata Motors was very close to his heart, ‘Chandrase caran told shareholders.