India’s automotive industry could face fresh supply chain disruptions by mid-July 2025 due to declining inventories of rare earth magnets, following tightened export restrictions and shipment delays from China, according to rating agency ICRA.

Jitin Makkar, Senior Vice President and Group Head – Corporate Ratings at ICRA, cautioned that the situation echoes the semiconductor shortage of 2021–22, which led to the loss of nearly 100,000 passenger vehicles. “Rare earth magnet inventories are projected to last only until mid-July 2025 for several passenger vehicle and two-wheeler applications,” he said.

Neodymium-iron-boron (NdFeB) magnets, critical for high-performance uses like EV traction motors and power steering systems, are heavily imported – around 85 percent of India’s USD 200 million imports in FY2025 came from China. These magnets make up nearly 30 percent of an electric two-wheeler motor’s cost, with motors priced between INR 8,000 and INR 15,000 depending on specifications.

To counter the supply challenge, Indian OEMs and auto component manufacturers are exploring several alternatives: importing fully assembled motors from China, sending rotors to China for magnet assembly, using substitute materials with similar properties, or switching to rare earth-free motors using electromagnets. However, each option faces significant logistical, regulatory, and engineering hurdles.

While the immediate impact could disrupt production planning, ICRA believes the crisis may also drive innovation and diversification in both materials and supply chains for the Indian auto sector.

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JSW Motors, the new business vertical of the JSW Group, has inked a strategic partnership with KPIT Technologies, which it shared aims to redefine future mobility in India.

The partnership will leverage KPIT’s expertise in software and systems development to strengthen JSW Motors’ vision to disrupt the domestic automotive market through innovation and global collaboration.

For the unversed, JSW Motors is investing USD 3 billion over the next five years to develop and manufacture electric, hybrid and plug-in hybrid vehicles in India. The company’s first New Energy Vehicle (NEV) is set to debut on the Indian roads in the second half of FY2026. It is also establishing a manufacturing hub spread across 630 acres in Bidkin, Maharashtra.

Kishor Patil, CEO & MD, KPIT Technologies, said, “KPIT is proud to partner with JSW Motors in their ambitious journey to transform India’s automotive landscape.  Our experience across global vehicle programs and SDV positions us uniquely to contribute to JSW’s vision. This partnership reflects our strategic focus on the Indian market and our commitment to delivering cutting-edge technology that enhances customer experiences and accelerates clean mobility. The partnership will include KPIT bringing advanced competencies in electric propulsion systems, battery innovation, and SDV architectures that enables continuous feature upgrades and superior consumer experiences.”

Ranjan Nayak, CEO of JSW Motors, said, “We plan to build world-class automotive products in India by integrating the best of technologies from across the globe. KPIT’s expertise in software and systems development is a cornerstone of our strategy to deliver best-in-class, technologically-advanced, high-performance, and sustainable vehicles. Together, we aim to energise the Indian auto ecosystem and set new benchmarks for innovation and customer satisfaction. Leveraging its global best practices and technical capabilities, KPIT will set-up a dedicated center of excellence for JSW Motors.”

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Suzuki R&D Center India (SRDI), a subsidiary of Suzuki Motor Corporation, has won the Grand Prize in the ‘Sustainability & Go Green efforts’ category at the recently held Innovatopia Awards in New Delhi in July 2025. The event was organised by the Air Cargo Forum India (ACFI).

The company was recognised for its proposal to use Suzuki’s Versatile micro e-Mobility Platform concept to address operational and environmental challenges in India’s airport cargo sector. The idea focused on improving the efficiency and automation of cargo transport at airports while reducing CO2 emissions by replacing diesel-powered tow tractors.

Suzuki’s micro e-mobility platform, originally developed using motorised wheelchair technology, is used as a base for various robotic applications. The company is exploring its use across sectors such as agriculture, logistics, and home delivery and in this case, for air cargo operations.

Keku Gazder, Board Member of ACFI, said, "SRDI's recognition at the ‘Innovatopia Awards’ for ‘Sustainability and Go Green efforts’ is a testament to the power of cross-sector innovation. As the only non-air cargo company honoured at the ACFI Conclave 2025, their work reflects a shared commitment to a greener future. "

Masahiro Ikuma, Managing Director, SRDI, said, "Suzuki aims for an infrastructure mobility closely connected with people’s lives, and is working to solve social issues in India through diverse mobility solutions. By utilising the versatile micro e-Mobility Platform concept, we aim to deepen our partnership with the air cargo industry and address emerging social challenges through innovative solutions in India."

Suzuki and SRDI plan to continue studying ways to implement the proposal.

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The Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, has signed a Memorandum of Understanding (MoU) with Bengaluru-based electric vehicle maker Ather Energy to accelerate growth of India’s clean mobility and advanced manufacturing sectors. The collaboration is part of the Build in Bharat initiative led by the Startup Policy Forum (SPF), a coalition of over 50 innovation-focused startups.

As per the understanding, the partners will focus on strategic mentorship for deep-tech startups, infrastructure support for startups in the EV value chain, joint innovation programs such as the Bharat Startup Grand Challenge, co-hosted talent and skill development initiatives and participation in events like Startup Mahakumbh along with on-ground exposure visits.

The MoU was signed in the presence of Sanjiv Singh, Joint Secretary, DPIIT and Tarun Mehta, Co-founder and CEO, Ather Energy.

Sanjiv Singh, said, “The electric mobility sector in India is entering a transformative phase. Through this partnership with Ather Energy, we aim to catalyse the development of an enabling environment where startups can contribute meaningfully to EV manufacturing, battery innovation, and clean energy solutions.”

Tarun Mehta, said, “We are happy to collaborate with DPIIT to strengthen support systems for hardware and deep-tech startups. With policy support and stronger industry participation, this initiative can help founders tackle core technology challenges and scale high-quality products from India.”

Shweta Rajpal Kohli, President and CEO, Startup Policy Forum, added, “This partnership between DPIIT and Ather Energy brings to life the Startup Policy Forum’s Build in Bharat initiative. Unlocking the potential of India's manufacturing sector through collaboration is key to building a globally competitive innovation ecosystem.”

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Singapore-headquartered engineering solutions company Quest Global has signed a multi-year partnership with Andretti Formula E as the team’s official Engineering Technology Partner. This collaboration officially launched at the 2025 London E-Prix, will see the partners closely work towards elevating the performance of Andretti Formula E cars and drivers.

With more than 25 years of experience, Quest Global will utilise key learnings from its talented team of over 21,000 engineers spread across 17 countries.

Quest Global has partnered with Andretti Formula E, starting with support for their remote operations room in Banbury, UK. This facility is central to race strategy and performance analysis during E-Prix weekends. The collaboration aims to improve data analysis, decision-making and performance tracking for Andretti Formula E team, enhancing their competitive position in Formula E. The partnership will also include the development of Andretti's GEN4 car, scheduled to debut in Season 13, highlighting Quest Global's involvement in the future of electric motorsport.

Andrew Lewis, Global Business Head – Automotive & Rail, Quest Global, said, “This collaboration with Andretti Formula E is a thrilling opportunity for us to demonstrate how cutting-edge engineering solutions can drive innovation and performance. Together, we will push the boundaries of what’s possible, combining our technical strength with Andretti’s competitive spirit. From race weekends to the GEN4 car development, this partnership highlights the transformative potential of engineering to inspire progress far beyond the racetrack.”

Roger Griffiths, Team Principal of Andretti Formula E, said, “We are excited to welcome Quest Global as a key part of our team. Their experience and expertise in leveraging engineering to solve complex challenges make them a perfect fit for us as we aim to continuously raise the bar in a championship built on innovation and agility. With Quest Global by our side, we are looking forward to enhancing our engineering operations and performance on and off the track.”

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