As many as nine components of the Nifty Auto index were trading in the green, with gains of up to 2%.
The sector is witnessing renewed positive sentiment after sources told CNBC-TV18 that India may turn to Australia as an alternative source for rare-earth magnets.
With China continuing to dominate rare-earth magnet exports, producing around 60% and processing about 90% of the global supply, India is reportedly exploring alternative sourcing destinations such as Australia, Argentina, Brazil, and Chile to hedge against supply chain risks.
Rare earth elements (REEs) and their processed forms are critical for applications across heavy industry, robotics, batteries, and military equipment.
Government sources added that boosting domestic availability through the National Critical Minerals Mission (NCMM) and recycling within a circular economy is being actively explored.
Earlier, CNBC-TV18 reported that India is also evaluating ways to scale up REE production via the government-owned Indian Rare Earths Ltd (IREL). Commerce and Industry Minister Piyush Goyal described China’s pause on REE exports as a “wake-up call for the world.”
The Nifty Auto index is currently among the top sectoral gainers in Wednesday’s session, trading with gains of 0.51%. Most constituents are in the green, except Tata Motors and Bharat Forge, which are trading in the red.
