New Delhi. There is a lot of discussion about the impact on Rare Earth Elements Crisis and its Indian automobile sector. Some companies have already suppressed the button of nervousness and said that the effect of their shortage will start to appear completely by the end of June or early July. While anyone can guess about the ban on export of Chinese rare economy elements, the rest of the world, including India, is engaged in finding solutions. While most of the companies of the world are upset due to this, there is a company that has not affected it.
We recently asked the new Skoda brand director, Ashish Gupta, his opinion on this subject. Their answer will surprise many people and fill their competitors with jealousy. Currently, the auto sector in India is trying to understand how to deal with the restrictions imposed by China on rare earth material. When asked about this, Gupta was full of confidence and said, “I think we have discussed with the internal and especially the supply chain team, and he has told me internally that our domestic business is not being affected.”
EV not in Skoda’s portfolio
This makes sense because Skoda is not currently selling any electric vehicles in India, and rare meaning materials are important. These materials are used to make magnets, which are used with motor, axle and more. It is safe to say that without these materials, it would be almost impossible to roll out the electric vehicle.
Many will argue that these elements are also used for internal combustion engine vehicles, but due to the sales of Skoda being quite limited, it can cope with these challenges internal. Based on the May sales data, its best -selling vehicle, Kyalak, sold around 5,000 units, while the rest, such as Kushak, Slavia, Kodiak and Suparb, are below 1,000 units.
