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After years of cost-first, single-supplier sourcing, India’s auto supply chain hit a wall in 2025 when rare-earth magnet flows tightened, forcing OEMs to reassess everything from vendor mix to inventory buffers. ACMA’s Vinnie Mehta says the lesson is clear: map vulnerabilities line-by-line and plug them domestically or via “friend-shored” partners.
Policy is catching up too, New Delhi has cleared a ₹7,280 cr programme to build 6,000 TPA of permanent-magnet capacity, a step toward reducing China dependence. Playbook shift: diversify sources, build strategic stocks, recycle magnets, and co-invest upstream so EV and electronics lines don’t stall again.
