New Delhi [India], February 10 (ANI): India's plan to develop a rare earth metals corridor spanning seven states is a positive step for the electric vehicle ecosystem, but its impact will be visible only over the long term as the initiative moves from announcement to execution, Hardeep Brar, President and Chief Executive Officer of BMW Group India, said on Tuesday.

While speaking on the sidelines of the 5th Global Electrification and Mobility Summit organised by the Society of Indian Automobile Manufacturers (SIAM), Brar said, 'On the rare earth metals, there's a corridor across seven states, which is very positive. But it has just been announced. Once it is in execution, we will know its long-term impact. In the short term, I don't see any impact.'

Brar said the announcement assumes importance as electric vehicles gain traction in India's mobility landscape. 'EVs are becoming the mainstay, and rare earth metals are very, very critical. The corridor could help strengthen supply chains for key components over time,' he said.

He described the Union Budget as long-term, with a strong focus on capital expenditure. 'There's a lot of investment in capex on infrastructure, which is very good,' Brar said, noting that the Budget builds on earlier measures such as GST exemptions announced last year and recent income tax reductions.

'I think the government is really going forward in terms of making changes.'

Brar also highlighted nearly Rs 700 crore of proposed investment in the charging segment, which he said would support electric vehicle adoption alongside infrastructure expansion.

Commenting on trade, Brar said the proposed European Union trade deal was a positive development but cautioned against expectations of immediate price reductions. 'There are a lot of discussions happening that prices are coming down immediately, which is not the case,' he said.

According to him, any price impact from the EU deal would take time to materialise and would be limited in scope. 'It will take another 18 to 24 months before it starts kicking in, and it will only impact the CBUs, which are only just 5%,' Brar said, referring to completely built units.

'For the rest of 95%, there is not going to be any impact.'

He urged consumers not to delay purchase decisions based on expectations of near-term price cuts. 'Customers who are listening to this should go ahead and make their purchase,' he said. 'Don't wait for prices to come down, because it's 18 to 24 months away, and that too only on CBUs.'

Brar also welcomed developments in India-US trade discussions, describing them as encouraging after earlier tariff levels posed challenges. 'With 50% tariffs, it was very tough,' he said. 'With tariffs coming down to 18% or 25%--I'm forgetting the exact number--it's again a very positive step.'

He said lower tariffs could benefit sectors such as pharmaceuticals, textiles, and gems and jewellery, which count the United States as a major market. 'They were big importers of these products, and these manufacturers will really benefit from this,' he said.

Asked about government comments on sintered rare earth permanent magnets, Brar said it was too early to assess their impact. The Budget's measures should be assessed over the long term rather than for immediate outcomes. (ANI)