U.S. and Chinese officials said they had agreed on a framework to get their trade truce back on track and remove China's export restrictions on rare earths.

Export controls on rare-earth metals have been part of China's retaliation to U.S. tariffs, and a key goal for the U.S. side in trade negotiations has been to get China to speed up exports of rare-earth minerals and magnets.

Maruti Suzuki has cut near-term production targets for its maiden electric vehicle e-Vitara by two-thirds because of rare earths shortages, a document showed, in the latest sign of disruption to the auto industry from China's export curbs.

Negotiators said the two governments would stick to a previous truce and reduce tensions that had escalated in recent weeks between the world’s largest economies.

U.S. Trade Representative Jamieson Greer told CNBC that China slowed on approving exports of key rare-earth materials, which broke the trade agreement with the U.S.

Hyundai Motor has a rare earths stockpile that can last about a year and it does not expect any near-term impact from global supply chain disruptions caused by China's export curbs, said a person who attended a company investor call.

Amidst China's rare earth export restrictions causing global concern, India is actively seeking joint exploration opportunities with Central Asian nations to diversify its supply chains. Minister Piyush Goyal has called China's actions a "wake-up call,

China has curbed exports of rare earth materials, especially rare earth magnets, which are crucial for manufacturing electric vehicle (EV) parts like motors. Nifty Auto index fell 1.6% in 5 days, down 5% over the past year. Key losers: Maruti Suzuki, M&M, Bharat Forge, Ashok Leyland, Samvardhana Motherson, among others.