Press Release, 26 November 2025
The Automotive Component Manufacturers Association of India (ACMA) has welcomed the Union Cabinet’s approval of a ₹7,280 crore scheme to promote the manufacturing of Sintered Rare Earth Permanent Magnets (REPM). This landmark decision marks India’s first comprehensive push to establish a fully integrated ecosystem for REPM production — covering the entire value chain from rare earth oxides to metals, alloys, and finished magnets. The initiative aims to build a domestic production capacity of 6,000 metric tonnes per annum, significantly reducing India’s reliance on imports for these critical materials.
REPMs play a pivotal role in the automotive sector, especially in electric drivetrains, motors, sensors, and advanced electronics. They are equally vital in renewable energy systems, aerospace, defence, and high-tech industrial applications. With India currently dependent on foreign sources for these essential components, the new scheme is seen as a strategic move toward achieving self-reliance in future mobility and energy technologies while strengthening national supply chain security.
Expressing gratitude to Prime Minister Narendra Modi and Union Minister of Heavy Industries H.D. Kumaraswamy for their leadership, ACMA President Vikrampati Singhania said the initiative fills a “critical gap” in India’s EV and advanced mobility ecosystem. “Rare Earth Permanent Magnets are foundational to electric motors and high-efficiency systems. A domestic manufacturing base will not only enhance technological competitiveness but also foster resilience in the automotive supply chain,” he noted.
ACMA believes this move will attract fresh investments in advanced materials, encourage innovation, and integrate India more deeply into global value chains for electric vehicles and clean energy. The association reaffirmed its commitment to collaborate with the government and industry stakeholders in advancing this Atmanirbhar Bharat vision through technological excellence and value creation.
About ACMA:
The Automotive Component Manufacturers Association of India (ACMA) represents over 1,100 auto component manufacturers, accounting for more than 90% of the industry’s organized turnover. In FY2025, the sector recorded a combined turnover of USD 80.2 billion, including USD 22.9 billion in exports and a trade surplus of USD 300 million.
