India’s Largest Rare Earth Magnet User Eyes Strategic Entry
Sona Comstar, one of India’s leading automotive technology and components manufacturers, is preparing to apply for the Government of India’s rare earth scheme, Managing Director Vivek Vikram Singh revealed in an interview with CNBC-TV18. The company may participate as either a primary or secondary applicant, depending on the scheme’s structure and partnership requirements.
Singh emphasized that despite India’s growing EV and precision manufacturing sectors, domestic firms still rely heavily on foreign technology for rare earth magnets—key components used in electric motors, sensors, and advanced automotive systems.
China’s Dominance Remains a Major Supply Chain Risk
Highlighting the geopolitical risk, Singh noted that China currently controls most of the global rare earth supply chain, wielding significant leverage over countries like the US and India.
He added that:
- Only “two to three” manufacturers in Japan and Germany produce rare earth magnets outside China.
- India has just four companies licensed to import magnets from China.
- The permitted import volumes are “minuscule”, and none have been supplied yet.
This puts Indian manufacturers under significant pressure, especially as EV adoption accelerates.
Why Sona Comstar’s Move Matters
Sona Comstar’s interest in the rare earth scheme signals:
- A proactive effort to develop domestic capabilities.
- A push to reduce reliance on Chinese suppliers.
- A strategic opportunity to strengthen India’s EV and mobility manufacturing ecosystem.
If the company successfully secures global partners and leverages the government scheme, it may help position India as a more self-reliant player in the rare earth and EV motor technology space.
