Ola Electric, Tata Motors, Bajaj Auto Jump Up To 6% As China Assures Rare Earth Magnet Supply | Markets News
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Indian auto stocks surged up to 6% as China assured India of addressing rare earth supply concerns, easing fears of production disruptions
Auto Stocks
Indian auto stocks extended their rally on Tuesday, with Ola Electric, Bajaj Auto, Hero MotoCorp, Hyundai Motor, Eicher Motors, and Maruti Suzuki climbing up to 6% in trade. The Nifty Auto index rose 1%, adding to Monday’s nearly 5% jump on hopes of a possible GST cut to spur vehicle demand.
The rally gained further traction after reports that China has assured India it will address concerns over supplies of rare earth magnets and tunnel boring machines. Rare earth magnets, of which China controls about 90% of global output, are critical for automakers.
Shortages have already hit production, with Bajaj Auto cutting its EV two-wheeler output by up to 50% in July and warning of continued constraints.
Hero MotoCorp said it has secured supplies for both ICE and EV models through Q2FY26, while Tata Motors has flagged rare earth magnets as a potential bottleneck, though its production remains unaffected for now. Both companies are scouting alternative sources.
If Beijing’s assurances hold, automakers may get relief from supply disruptions just as domestic demand prospects brighten.
At 10:55 am, Nifty Auto was up 1%, with top gainers including Ola Electric, Bajaj Auto, Tata Motors, Maruti Suzuki, Hero MotoCorp, Eicher Motors, Hyundai Motor India, and TVS Motor. The index has gained 11.2% year-to-date.
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Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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