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Maruti, India's largest carmaker, says China magnet curbs will not affect them immediately

Maruti Suzuki is India's largest car manufacturer. It said Monday that China's export restrictions on rare earth magnets - a key component - have no immediate impact on production. The company is also in discussions with the government about the issue.

Reports say that auto manufacturers warned government officials in the last week of a possible production halt within days because of curbs.

The new import process is complex and requires approval by Indian and Chinese officials, as well as documentation including certificates of end-use stating that the magnets were not intended for military use.

Maruti said that they have submitted an import request and it is difficult to comment until they receive a response.

"It's not a restriction. It's an endorsement of the end use. Rahul Bharti said to reporters that in the event of a problem, "we will... inform all our stakeholder, including stock exchange."

China controls 90% of the global magnet processing capacity, which is used in many fields, including automobiles, appliances, and clean energy. In April, it enacted measures requiring import permits.

The Society of Indian Automobile Manufacturers, in a meeting last month with officials from the commerce ministry, said that inventories of parts manufacturers are likely to be exhausted by the end of the month.

The document, presented at a meeting in May attended by Maruti executives and others, said that the auto industry's production would come to a halt starting end-May or early-June. (Reporting and editing by Tom Hogue, Christopher Cushing, Aditi Sharma)

(source: Reuters)