New Delhi, Aug 8 (PTI) Rare earth magnets shortage issue has had no impact on production of Tata Motors and JLR’s electric vehicles and is unlikely to affect in the foreseeable future, although there are a few challenges in the coming quarters, Tata Motors Group CFO P B Balaji said on Friday.
In an earnings call, he said teams are working to sort out the problem and the company is continuing to de-risk itself, and is confident of de-risking itself completely.
“Absolutely no impact on production so far, as far as rare earth are concerned, nothing in the foreseeable future,” Balaji asserted when asked if the company adjusted production due to the shortage of rare earth magnets.
He further said, “The semiconductor crisis has given us enough learnings and abilities to actually manage challenges of this sort. So at this point in time, we do not see stress in the domestic business as well as JLR and a lot of interventions put in place to ensure that we keep this pace.”
While the company also does not see any issue in next quarter, Balaji, however, said, “There are a few challenges in the coming quarters, but that’s something we will sort it out. Teams are working through the problems as we speak. We feel confident that we will be able to manage it.
Currently we are not having any (issues).”
Balaji said Tata Motors is continuing to work to resolve the issue of rare earth magnets supply “to de-risk ourselves, and we are confident that we’ll de-risk it completely”.
While that is work in progress at this point in time, he said, “Whatever we see in terms of plans that they put out there, we are confident.”
Global automotive industry, including Indian electric vehicle manufacturers, have been hit after China put restrictions on exports of rare earth elements, used in magnets that are key components in electric vehicles.
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