Mr. Shailesh Chandra, President, SIAM, has welcomed the Government of India’s newly announced scheme to promote domestic manufacturing of rare earth permanent magnets, backed by an outlay of ₹7,280 crore. He said: “The Indian Automobile industry welcomes the Government of India’s newly announced scheme to promote the domestic manufacturing of Rare Earth permanent magnets, with an allocated outlay of ₹7,280 crore. This initiative is a significant step toward building a resilient and stable supply chain, particularly for components and sub-assemblies essential for the production of electrified vehicles. The scheme is expected to accelerate adoption of clean mobility solutions and support India’s broader sustainability goals. By strengthening indigenous manufacturing capabilities, it will contribute to reducing carbon emissions and lowering dependence on crude oil imports, further enhancing the nation’s energy security.”
ACMA welcomes Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM)
The Automotive Component Manufacturers Association of India (ACMA) has welcomed the Union Cabinet’s approval of the Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets (REPM) with a financial outlay of ₹7,280 crore. This landmark initiative marks India’s first concerted effort to build an integrated REPM manufacturing ecosystem – spanning rare earth oxides to metals, alloys, and finished magnets-enabling 6,000 MTPA of domestic capacity. ACMA extends its sincere gratitude to the Hon’ble Prime Minister of India, Shri Narendra Modi, and the Hon’ble Union Minister of Heavy Industries, Shri H.D. Kumaraswamy, for their visionary leadership in championing this transformative scheme.
REPMs are critical to the automotive value chain, particularly for electric drivetrains, motors, sensors, and advanced electronics, and are equally vital for renewable energy, aerospace, defence, and industrial applications. India’s current dependence on imports for these magnets has long been a strategic vulnerability. The Cabinet decision is therefore transformative for building self-reliance in future mobility technologies and securing industry supply chains.
Thanking the Government for the initiative, Vikrampati Singhania, President ACMA, said, “ACMA wholeheartedly welcomes the Cabinet’s approval of the REPM Manufacturing Scheme. This is a strategic and forward-looking intervention that addresses one of the most critical gaps in the EV and advanced mobility ecosystem. Rare Earth Permanent Magnets are foundational to electric motors and high-efficiency systems, and the establishment of a domestic, integrated manufacturing base will significantly strengthen India’s technological competitiveness.
This initiative will not only reduce import dependence but also provide long-term resilience to the automotive supply chain, encourage investments in advanced materials, and position India strongly in global value chains for EVs and clean energy. We commend the Government’s vision and remain fully committed to supporting the industry in leveraging this opportunity for innovation, value creation, and Atmanirbhar Bharat.”