New Delhi21 minutes ago
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The direct impact of the ban on export of precious metals (rare economy) from China has started appearing on the world’s auto industry. Maruti Suzuki’s parent company Suzuki Motor Corporation has announced to stop production of its popular model Swift in Japan.
At the same time, many auto companies from Europe and Japan have stopped production or have come in a position to stop anytime. This includes companies like Ford, Nissan, BMW and Mercedes. It will also affect the Indian automobile sector. So next week an Indian contingent will go to China.
Production has to be stopped due to lack of auto parts
- According to Reuters Asia report, the ban on production of Swift started from 26 May, which will continue till 6 June. However, production of its sports model will continue. Suzuki has officially not given any reason behind this, but the report showed that the company has taken this step due to lack of auto parts due to the ban on precious metals by China.
- Nissan has said that it is looking for measures to deal with the situation in association with the Japanese government. Nissan’s CEO Ivan Aspinosa said, “We have to find options for supply sources for the future and maintain flexibility.”
- According to the European Automotive Suppliers Association (CLEPA), Ford temporarily shut down its Chicago assembly line for the Explorer SUV in late May and European parts suppliers have also started their operations.
- Mercedes-Benz’s production head Jorg Burjar said, “He is constantly talking to the suppliers and considering stocking the major components.
- BMW has admitted that some of its supply chains are already being affected. The company is monitoring the rising risks and is talking with the vendors to prevent major damage.
Although companies like Mercedes and BMW do not directly make a source of rare metals, their tier-1 suppliers use these metals in electric motors and hybrid systems. This causes them to face lack of components.
Productions of cars are being affected worldwide.
Indian delegation will go to China next week India will send a high level delegation of the auto industry to China next week, which will include representatives of the Society of Indian Automobile Manufacturers (SIAM) and Automotive Component Manufacturers Association of India (ACMA). The team will interact with Chinese officials to rapidly approval for shipment of rare economy, which are necessary for the automotive industry. At the same time, the Indian Ministry of External Affairs is busy solving the problems of supply through the Indian Embassy in Beijing.
If China’s restrictions remain, EV will be expensive
If the restrictions of China remains, then it will see its impact on companies making electric vehicles at the global level. The prices of raw materials will increase, due to which the prices of trains can also go up. Its effect will gradually be seen in all markets including India. Experts in India have warned that if the import from China does not start soon, the production of electric and ICE vehicles may stop.
China’s about 70% participation in the mining of rare materials Let us know that China is about 70% in the mining of rare materials at global level and up to 90% in production. China recently banned export of 7 precious metals (rare economy) among the US growing trade war.
China has also stopped the magnets of magnets required to assemble from cars, drones to robots and missiles. These materials are very important for automobiles, semiconductors and aerospace business.
Export will be done only through special permit On April 4, China issued an order to ban the export of these 7 precious metals. According to the order, these precious metals and special magnets made from them can only be sent out of China with special permits.
Companies have to give ‘End-Use Certificate’ to order magnets from China. It has to be mentioned that these magnets are not for military purposes.
Why did China ban? According to the Reuters report, this move of China also shows its dominance in mining individuals. In addition, it is being seen as to benefit from China in the ongoing tariff war with US President Donad Trump.
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