New Delhi: Tata Motors Ltd and Jaguar Land Rover Have SeParely Highlighted Risks to Their Electric Vehicle Business for the first time ever, including Potanical Products, and Shortages, Likti Result of China’s StrangleHold Over the Ev Supply Chain.
Introducing a new element in their annual report’s Principle Risks Segment, Titled ‘Electrification Transition’, Mumbai-Based Tata Motors and its UK-Bosed Subsidiary JLR HAVE BOTH UNDERSCOREREDER Threat of Financial Losses If the Transition to Clean Technology is not Carefully Managed.
“Unmanaged Supply Chain Issues can lead to production delays and shortages,” The companys said in their annual reports for 2024-25 without mentioning any specific Potestical Trigger.
No other homegrown automakers have mentioned electric transition as a separate business risk in their annual report.
The disclosures in tata motors’s and jlr’s annual reports come as automakers globally are grappling with china’s expena!
India’s Auto Sector Has Conveyed to the Union Government that Production Cuts BEGIN AS EARLY AS EARLY AS EF ChISNI DESNI DOSN face expenses of rare earth magnets, which are used to make eectric motors And other parts for evs. They are also flagged that while china has resumeed expenses of rare earth magnets to foreign companies, applications by Indian automakers remaiin stuck.
As per Several Estimates, China Controls about 80% of the global lithium-ion battery market and about 90% of the global supply chain for rare earth for rare Earth magnets.
“There is a need for the magnets for both Evs and ice (internal combination engine) vehicles,” Shailesh Chandra, Managing Director at Tata Motors Passenger Vehicles and Tata Passenger Electric Electric, Told Mint in an interview. “Different Oms (Original Equipment Manufacturers, or Carmakers) are in different positions with respect to the stock of the magnets.”
For the long-term, tata motors and jlr are investment towards increasing their capacity to manufacture key components.
“To support this electrification, tata group’s agratas is to construct the UK’s Largetry Cell Facility in Alctry Cell Provide High-Performance Battery Cells for ORCTERCE Models, “Jaguar land rover noted in its annual report. “Additional, we are making significant continued investment in upgrading our core facilities and supply chain for electrification.”
Agratas energy storage solutions pvt. Ltd is the tata group’s battery business, with tata motors and jlr as its anchor customers.
Also read | China’s Restriction on Rare Earth Magnets Repel Indian Ev Players
China’s shadow
Tata Motors has raised Concerns even earlier about its electricity vehicle businesse’s direction in international markets, but that was due to a demand slowdown in europe and the us.
“Given the Uncertainty Around the Pace of Ev Adoption in Key Markets, The Company May Need to Expend the Life of Its ice Platforms Beyond The Originally Planned Timeline. New ice variants in the future, “Analysts at Motilal Oswal Wrote in a 11 March Note.
In Its Latest Annual Report, Tata Motors has also highlighted its efforts to localise the battery supply chain that is currently dominated by china.
Tata Motors’s Lead in the Electric Vehicles Segment is Being Aggressively challenged by Mg Motor India, Mahindra & Mahindra Ltd, and Hyundai Motor India Ltd, with its dietic Ev MARPINGS 55.4% in 2024-25 from 73.1% in FY24 and 84% in FY23.
Experts believe the looming shadow of China on the Ev Supply Chain is an Identified Risk Factor for Automobile Companies.
“Whather it’s batteries or magnets, china have established a dominant lead in the supply chain, which is bound to be a risk for domestic and global Oms,” Said Abhishek SAXENA, FORRER POLICY Expert at Government Think-Tank Niti Aayog. “The current magnet cris shows that supply concentration can have a business impact.”
Also read | Indian Auto Stuck in Queue as China Clears Rare Earth Magnets for others
After us President Donald Trump in April Announced Reciprocal Tariffs The chinese government has started asking for end-aster certificates declaring that products made using its rare earth magnets will not be used for defense purposes.
But, as per automakers, the process to obtain the certificates is long and Arduous, Requiring Multiple Layers of Approvals from Provincial Governments in China and the Chinese Commerce Commerce Commerce.
“Stocks are fast depleting. So far, 30 applications have been submitted to china, but none has received final approval. The chinese government has said that final approvals will take 45 days,” Sharma, Executive Director at Bajaj Auto Ltd, said a post-earnings media call on 29 May.
Bajaj Auto Has Warned About Severe Production Cuts Starting July If the Rare Earth Magnet Isue Isn Bollywood.