SUMMARY
Suzuki Motor Corporation has temporarily halted production of its Swift subcompact car (excluding the Swift Sport model) due to a shortage of components linked to China's recent export restrictions on rare earth elements. The production suspension began on May 26 and is scheduled to continue through June 6. Suzuki plans to partially resume production at its Sagara plant on June 13, with full operations expected to restart after June 16, as parts supply improves .
China's decision in April to suspend exports of a wide range of rare earths and related magnets has disrupted global supply chains, impacting industries from automotive to aerospace and semiconductors. Some European auto parts plants have also suspended output, and companies like Mercedes-Benz are exploring solutions to safeguard against rare earth shortages .
In India, Maruti Suzuki, the country's largest carmaker and a subsidiary of Suzuki Motor Corporation, stated that its production has not been affected so far by China's export restrictions on rare earth magnets. The company has submitted an import application and is in discussions with the Indian government, though it refrained from specifying how long production can continue without new supplies
Industry groups, including the Society of Indian Automobile Manufacturers (SIAM), have warned that auto parts inventories could be depleted by the end of May, potentially bringing production to a halt by early June. They have urged the Indian government to secure detained shipments at Chinese ports and expedite the import process, which requires multiple government approvals and verification by the Chinese embassy
China controls over 90% of global processing capacity for rare earth magnets, making its export policies critical for industries worldwide. The recent export restrictions, aimed at safeguarding national security, have introduced complexities in the import process, including the requirement of end-use certificates and approvals from both Indian and Chinese authorities .
Ask Anything, Know Better
May 29
May 26
May 21
April 17
April 16
June 06 PGII is an infrastructure plan which was first announced in 2021 during the G7 summit in the UK. Though the US President had earlier called it the Build Back Better World (B3W) framework, it is now known as PGII. (G7 or Group of Seven, includes the UK, the US, Canada, France, Germany, Italy, Japan, and the EU). In 2022, the PGII was officially launched as a joint initiative of G7 (during the G7 summit in Germany) to help fund infrastructure projects in developing countries through public and private...
Comments
Write Comment