'It is not a restriction': Maruti says no immediate impact from China's magnet export curbs

NEW DELHI: Maruti Suzuki , India's largest carmaker on Monday said that its production has not been affected so far by China's export restrictions on rare earth magnets, which are crucial components in vehicles.

When asked how many weeks of inventory Maruti Suzuki has before its production could be affected, the company said it has already submitted an import application and cannot provide specific details until a response is received.

"It is not a restriction. It is an endorsement of end use. In case there is an issue, we will ... inform all our stakeholders, including the stock exchange," Rahul Bharti, senior executive director, corporate affairs, told reporters, according to Reuters.

The company further added that it is in talks with the government to understand the new rules and their potential impact.

China, which dominates over 90% of global magnet processing capacity used across automobiles, appliances and renewable energy sectors, implemented new permit requirements in April.

The Society of Indian Automobile Manufacturers warned commerce ministry officials that component manufacturers' stocks might deplete by May's end.

"Starting end May or early June, auto industry production is expected to come to a grinding halt," the organisation said in their report during a meeting in May, which included representatives from Maruti and other automotive executives.

Suzuki Motorcycle India reported a 16% year-on-year increase in total sales for May, reaching 1,28,896 units compared to 1,11,512 units in the same month last year.