Tata Motors is working with the government and is also taking steps to procure magnets from alternative sources in the wake of China restricting exports of rare earth elements, company chairman N. Chandrasekaran told shareholders on Friday.

Responding to queries from shareholders on the impact of China’s move to restrict exports of rare earth elements and shortage of magnets, he said, “As of now, this is not a concern, but this is something that we are watching very carefully.”

“As of now, we are okay. We are not facing issues...We are able to source the magnets that we need, and also we have plans for having the right level of inventory. We are working with the government. Also, we are working on sourcing from alternative sources,” Chandrasekaran noted.

China’s restrictions on the export of rare earth elements and related magnets are affecting the domestic auto and white goods sectors.

The automobile industry had sought the government ‘s support in expediting approvals from the Chinese government for importing rare earth magnets used in various applications, including passenger cars.

To another query on the impact of the ongoing Iran-Israel war on the company’s business, he said, “It is very difficult to answer what will a war kind of situation look like.”

However, he said Tata Motors group’s three firms — commercial vehicle, passenger vehicles and JLR — have a very strong platform.

“They will be able to tide over any of these geopolitical issues in the short term but are completely ready and poised for excellent growth and leverage the opportunity that this industry has to offer,” Chandrasekaran asserted.