Shares of Uno Minda, Bosch, Mareli, TVS Group, Motherson Sumi, and Sona Comstar are in focus following reports that Indian firms are working to create domestic rare earth magnet supply chains due to restrictions on exports from China.
As reported by ET Online, Indian companies are increasing efforts to develop local rare earth magnet supply chains in response to China’s export limitations. Midwest Advanced Materials, Entellus Industries, and IREL have submitted proposals to the government, with the goal of minimizing dependence on imports from China.
The government is contemplating incentives to bolster local production, addressing the auto industry’s worries about supply timelines, as indicated in the reports.
Avinash Gorakshakar SEBI registered fundamental equity analyst said that there are reports that the government of India (GoI) has unveiled the ₹3500 to ₹5000 crore PLI Scheme for rare-earth magnet manufacturing. This move is aimed at benefiting auto and metal companies. There are reports that Uno Minda, Bosch, Mareli, TVS Group, Motherson Sumi, and Sona Comstar have shown interest in rare-earth magnet manufacturing. So, if the report comes true, these auto stocks are expected to show sharp upside movement in the near term.
