Tata Motors said on Tuesday that its electric vehicle (EV) launch plans remain on schedule despite recent export restrictions on rare earths by China, a move that has raised concerns across the global automotive industry.
Speaking at an event in Mumbai, Tata Motors Chief Financial Officer P.B. Balaji said the company had not yet seen a disruption in supply that would affect production.
“Currently, I think there’s no panic because we believe the supplies are coming through. There’s no production curtailment. Nothing is being planned at this point in time,” Balaji said.
China, which controls more than 90% of the global processing capacity for rare-earth magnets used in EV motors and various automotive components, implemented new export restrictions in April requiring permits for outbound shipments. The curbs have triggered concerns about a potential supply crunch, particularly for carmakers reliant on imported materials.
Tata Motors said it continues to monitor the situation closely and is evaluating both alternate sources and new technologies to reduce dependence on rare-earth materials.
Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and its EV unit, added that the company was “looking at how to reduce the composition of rare earth magnets in its cars and how to completely eliminate them over the longer term.”
In contrast, rival Indian automaker Maruti Suzuki recently reduced near-term production targets for its e-Vitara EV by two-thirds due to rare-earth shortages.
Separately, Balaji said Jaguar Land Rover, Tata’s UK-based luxury car unit, would implement “calibrated” price increases to offset the impact of new U.S. tariffs but had no plans to set up a manufacturing base in the United States. Last week, Jaguar Land Rover revised its fiscal 2026 EBIT margin forecast to 5%-7%, down from 10%, amid growing industry uncertainty.