An official from an EV motor manufacturing company in Coimbatore said some firms were sourcing magnets through Taiwan. Restrictions on the export of neodymium-iron-boron magnets by China are impacting electric vehicle (EV) motor production in Coimbatore. These magnets, which are crucial components for EV motors, are now facing supply delays and potential shortages due to China’s tighter export controls, affecting the entire EV sector.
Around 80 per cent of India’s magnet imports come from China, while the remaining 20 per cent is sourced from countries like the US and Japan. However, magnets from these alternative sources are far more expensive.
“If we use such costly magnets, we cannot offer our products at competitive prices. The EV motor manufacturing sector is heavily dependent on China. The central govt is aware of the issue. It should intervene, hold talks and find a solution at the earliest,” said Mohan Senthilkumar, president of the Scientific and Industrial Testing and Research Centre (SiTarc).
“EV motor manufacturing units in Coimbatore have been affected by this issue. Magnets are not only used in EV motor manufacturing but also for other applications in the automobile industry, such as gear sensors and speed sensors,” he said.
“This situation is hampering the growth of the two-wheeler EV manufacturing sector,” Senthilkumar said.
“We are developing a common facility centre in Coimbatore, with 90 per cent funding support from the state govt, focused on testing electric vehicle motors (hub and mid-drive) and controllers for two- and three-wheelers. In the meantime, China’s restrictions have created an additional challenge. Until August end, manufacturers will be able to access existing stock, but after that, production is likely to come to a grinding halt,” he said.
An official from an EV motor manufacturing company in Coimbatore said some firms were sourcing magnets through Taiwan. “In Taiwan, they import the magnets from China and supply them to us at three times the cost of direct imports. Earlier, we could receive magnets within 30 days of the date of order. Now, delivery times have extended to 60 days. This is becoming a major issue,” the official said.
