India’s automotive sector has strongly welcomed the Union Cabinet’s landmark approval of a ₹7,280-crore scheme aimed at promoting domestic manufacturing of sintered Rare Earth Permanent Magnets (REPMs) — a crucial step to strengthen EV supply chains, clean energy infrastructure, and advanced manufacturing capabilities.
Industry leaders have hailed the move as a transformative policy intervention that will accelerate the country’s shift toward electric mobility, reduce dependence on imports from China, and enhance India’s global competitiveness in high-technology sectors.
Industry Leaders Praise the Move
Shailesh Chandra, President, SIAM, said: “The Indian Automobile industry welcomes the Government of India’s newly announced scheme to promote the domestic manufacturing of rare earth permanent magnets. This initiative is a crucial step toward strengthening supply chains for electrified vehicles, accelerating clean mobility adoption and supporting India’s sustainability and energy-security goals.”
The Automotive Component Manufacturers Association of India (ACMA) also applauded the announcement, noting that the ₹7,280-crore outlay marks India’s first decisive push to build an integrated REPM manufacturing ecosystem covering the full value chain — from oxides to metals, alloys and finished magnets — enabling 6,000 MTPA of capacity.
Vikrampati Singhania, President, ACMA, stated: “This scheme addresses a critical gap in the EV and advanced mobility ecosystem. Creating an end-to-end domestic manufacturing base will significantly strengthen India’s technological capabilities, reduce import reliance, and support Atmanirbhar Bharat.”
Stephane Deblaise, CEO, Renault Group India, added that the move will “boost growth for both OEMs and component suppliers, deepen localisation, and enhance long-term competitiveness in clean-energy powertrains.”
Echoing similar support, Vivek Vikram Singh, MD & Group CEO, Sona Comstar, said: “As India’s largest consumer of rare-earth magnets in the mobility space, we strongly welcome this initiative. A stable domestic supply chain will help us accelerate innovation, localisation, and global competitiveness.”
Highlighting the broader opportunity, Vasudha Madhavan, CEO & Founder, Ostara Advisors, said: “India holds an estimated 6.9 million tonnes of rare-earth reserves but produces only 2,900 tonnes annually. With 90% of global refining capacity outside India, this scheme unlocks a major opportunity to transform resources into manufacturing strength, accelerate electrification and scale renewable energy hardware.”
A Strategic Push Toward Self-Reliance
REPMs are essential components for EV drivetrains, motors, sensors, renewable energy systems, aerospace and defence technologies. India currently imports the majority of its requirements, with consumption expected to double between 2025 and 2030.
The programme includes:
- ₹6,450 crore in sales-linked incentives (over five years)
- ₹750 crore in capital subsidy for setting up end-to-end manufacturing facilities
- Seven-year scheme duration, with 2-year gestation and 5-year incentive period
- Capacity allocation for five beneficiaries, up to 1,200 MTPA each, through global competitive bidding
The Cabinet’s ₹7,280-crore REPM manufacturing scheme marks a game-changing step in strengthening India’s EV and clean-energy ecosystem, reinforcing advanced materials manufacturing and positioning the nation as a strategic player in global value chains.
