India’s automobile and auto component sector, the world’s third-largest, is experiencing robust growth, with vehicle sales expected to surpass 5 million units in 2025. Government incentives, rising rural demand, and a focus on electric vehicles and domestic manufacturing are driving industry expansion and technological advancement.
China’s restriction on rare earth magnet exports to India is set to create fresh production hurdles for Indian EV and auto component manufacturers. Essential for traction motors and other automotive parts, these magnets’ limited availability may disrupt supply chains, raise costs, and drive efforts toward alternative sourcing, local extraction, or recycling solutions, prompting strategic adjustments.
The sudden restriction has led Indian automakers and component suppliers to seek government support, warning it may fracture supply chains and hinder electric vehicle manufacturing. They’ve appealed for rapid policy intervention to mitigate disruptions and shield the domestic EV sector from delays and cost overruns.
Under new Chinese regulations, exporters will only supply rare earth magnets to firms submitting prescribed end-user certificates. These must be authorized by the Indian Ministry of External Affairs and the Chinese Embassy, confirming the magnets will not be used militarily or transferred to third parties.
Here are the auto stocks in focus after China stops supplying rare earth magnets to India:
1. Sona Blw Precision Forgings Ltd
Sona BLW Precision Forgings Limited is an India-based firm that manufactures precision-forged bevel gears and differential case components for automotive and other applications. The company manufactures differential assemblies, differential gears, and other products. With a market capitalization of Rs 28,536.86 crore, the shares were trading at Rs 459.00 per share, decreased around 3 percent as compared to the previous closing.
2. Samvardhana Motherson International Ltd
Samvardhana Motherson International Limited full system solutions provider to customers in automotive and other industries. It has a diversified product portfolio, which includes electrical distribution systems, fully assembled vehicle interior and exterior modules, and automotive components With a market capitalization of Rs 94,388.91 crore, the shares were trading at Rs 134.15 per share, decreased around 1.36 percent as compared to the previous closing.
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3. Tata Motors Ltd
Tata Motors Group is a top worldwide automaker. As part of the legendary multinational corporation, the Tata Group, provides the globe with a diversified portfolio of automobiles, sports utility vehicles, trucks, buses, and defense vehicles. With a market capitalization of Rs 2.41 lakh crore, the shares were trading at Rs 657.05 per share, decreased around 3 percent as compared to the previous closing.
4. Mahindra And Mahindra Ltd
Mahindra & Mahindra Ltd is a highly diversified Indian automaker, with a presence in 2-wheelers, 3-wheelers, PVs, CVs, tractors, and earthmovers. Its subsidiaries span financial services, IT, retail, infrastructure, aerospace, defense, energy, and more. With a market capitalization of Rs 3.56 lakh crore, the shares were trading at Rs 2,864.65 per share, decreased around 2 percent as compared to the previous closing.
5. Bosch Ltd
Bosch Limited is an India-based supplier of technology and services in the areas of mobility solutions, industrial technology, consumer goods, and energy and building technology. The Company manufactures and trades in products such as diesel and gasoline fuel injection systems, automotive aftermarket products. With a market capitalization of Rs 82,877.13 crore, the shares were trading at Rs 28,100.00 per share, decreased around 2 percent as compared to the previous closing.
Written by Abhishek Singh
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