India's EV ambitions face challenges due to China's export restrictions on rare earths, which are essential for EV production. The Indian government is contemplating sending a delegation to negotiate with China.

Maruti Suzuki, India's top-selling carmaker, said on Monday there was no immediate production impact from China's export curbs on rare earth magnets, a key component, and that it was in talks with the government on the matter.

If the supply disruption persists, EV makers could be compelled to raise prices by as much as 8 percent to offset rising input costs.