Shares of Tata Motors Ltd and Mahindra & Mahindra Ltd lost early gains on Friday, 25 April, after China had halted supplying rare earth magnets to India.

According to industry sources, the migration from China is causing manufacturing issues for Indian EVs and component makers. As a result of this decision, vehicle and component makers have asked the government for assistance.

According to sources, China has restricted the supply of rare earth magnets to India since 4 April and is now requesting end-user certifications before releasing any officially authorized rare earth magnet shipments.

The neighbouring country has also specified that importers must obtain end-user certificates signed by both India’s foreign ministry and the Chinese consulate. Importers must also affirm that the rare earth magnets will not be utilized to manufacture weapons or distributed to third parties.

Rare earth magnets play an important role in traction motors and other components of electric vehicles and cars.

At the conclusion of the third quarter, Tata Motors had seen a 23% increase in EV registrations, owing to new offerings that fueled growth.

At 12:51 pm, the shares of Tata Motors were trading 1.62% lower at Rs 657.50, and shares of Mahindra & Mahindra were trading 1.33% lower at RS 2,862.90 on NSE.

The future of investing is here!
Unicorn Signals leverages advanced AI technology to provide you with powerful market predictions and actionable stock scans. Download the app todayand 10x your trading & investing journey!