JULY 20258APPLE SUPPLY CHAIN IN INDIA HITS OVER 20 PERCENT DOMESTIC VALUE ADDITIONSONA COMSTAR EYES MAGNET MANUFACTURING TO BOOST EV SUPPLY CHAINSona BLW Precision Forgings Ltd (Sona Comstar), one of India's largest auto component manufacturers, prepares to manufacture rare-earth magnets domestically to lessen reliance on imports from China. This comes in the wake of China limiting exports of rare-earth iPhones sold in the U.S. during the June quarter would be made in India, drawing political attention in the U.S.DVA in Apple's Chinese supply chain is estimated at 30 to 35 percent, while Vietnam contributes around 20 to 25 percent. India now matches Vietnam's contribution, and government officials target to raise this to 40 percent over the next decade.The Indian government allows domestic assembly and testing of imported components, such as batteries, chargers, and adapters to count toward DVA. As a result, Apple's suppliers are now classified as Class II local suppliers under the DPIIT's Public Procurement Order of 2017.Tata Electronics operates assembly units in Tamil Nadu and Karnataka. Foxconn is expanding in Karnataka with what will become its second-largest facility globally.Samsung India and Padget Electronics similarly crossed 20 percent DVA for smartphones. In IT hardware, companies like Dell, Netweb Technologies, and Micromax's Bhagwati Products have achieved similar indicators.India now produces some key iPhone components, including casings and display glass, with Corning handling glass finishing locally. Apple currently has over 20 component suppliers in the country.In spite of these gains, many critical components still come from China, South Korea, Japan, Vietnam, & Taiwan. magnets, an essential component used in electric vehicle (EV) motors, and other advanced automotive components.With EVs making up a third of Sona Comstar's revenue, the company imported almost 120 tonnes of magnets in FY24, and planned to raise that level to 200 tonnes. The necessity of an export license from China, effective April 2025, ensures lack of supply chain clarity and drove the company to action on local production instead.Despite hosting the world's fifth-largest rare-earth reserves, India does not have the facilities to process them, therefore this will be an exciting milestone for the industry. The company has enjoyed phenomenal financial growth (fivefold over five years) naturally exceeding $400 million dollars and can afford the investment on its magnet production project.The expected launch of a scheme from the Indian government for rare-earth magnet manufacturing by mid-July aligns favorably. At the same time, the government is facilitating short-term imports through end-user certification, while the auto component industry pushes for long-term self-reliance.Sona Comstar's initiative is poised to strengthen India's EV supply chain and reduce dependence on Chinese critical material imports. TOP STORIESApple's major iPhone manufacturers in India, Tata Electronics, Foxconn, Wistron, and Pegatron have crossed the 20 percent domestic value addition (DVA) threshold, according to official documents. This milestone reflects a major shift in Apple's global manufacturing strategy and aligns with India's "Make in India" drive.In FY25, Apple exported iPhones worth Rs. 1.5 trillion from India, around 76 percent increase from the previous year. Apple CEO Tim Cook recently said that a majority of · Apple's India suppliers surpass 20 percent domestic value addition mark· India matches Vietnam in Apple's supply chain DVA levels· India now hosts over 20 Apple component suppliers locally· Sona Comstar to begin domestic production of rare-earth magnets to reduce reliance on Chinese imports.· The move strengthens India's EV supply chain amid global raw material disruptions.· Government incentives & rising EV demand drive localisation efforts in critical auto components.
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