New Delhi4 hours ago
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Bajaj Chetak is the second most sold e-scooter after TVS Icube in India.
Bajaj Auto can completely stop the production of its electric scooter Chetak and Electric Three-wheeler Gogo from next month (August 2025). Because, the company is on the verge of the rare meaning magnets stock being over. The reason for this is to stop the supply of rare economy metals from China.
The company’s MD Rajiv Bajaj told the Economic Times that in June 2025, the company was running production from its current stock, but it was half in July. Now the stock is on the verge of ending by August. This can lead to zero production.
In July, the company has reduced the production
Bajaj Auto is India’s second largest electric scooter making company. The company sold 23,004 units in June, which is 154% more than the previous year. However, due to lack of rare meaning magnets, production has to be reduced in July. This is sure to affect the sale.
If the production stopped in August, the company’s market share, revenue and Ebitda (profit) will suffer a major setback. Rajiv admitted that the EV portfolio was now giving profit, but this crisis can turn water on all hard work.
Where is the use of rare meaning metals in the car
- Rare metals are used especially in electric vehicles. They are used to make compact and high performance megate for permanent magnet electric motors.
- These magnets made of elements such as neodimium, dysproosium and turbium make the motors more efficient than small, light and other motors, which improve EV’s range and performance.
- They are also used in components such as Catellic converters installed in petrol and diesel vehicles. Apart from this, these metals are used from sensors to displays in many systems installed in the vehicle.
Indian companies struggling with lack of rare meaning magnets for 4 months
Apart from Bajaj, top electric two-wheeler companies in the country have also decreased ather Energy and TVS motor. According to the ET report, Indian companies are struggling with the lack of rare economy to be imported from China for the last 4 months. These magnets are very important for electric motors and are having difficulty in creating electric vehicles without their electric vehicles. Decreased production can increase the prices of electric two-wheelers.
These companies making electric two-wheelers also affected
- Ather Energy: This Bangalore company has reduced the production of its electric vehicles by 8-10%.
- TVS Motor: For the last 3 months, the number one company in sales is also forced to reduce production. The TVS spokesperson said, “The lack of magnets in the EV supply chain has increased the challenges in the short and medium term.”
- Ola Electric: Production will not have any effect, as Ola has 5-6 months magnet stock and is also thinking of increasing production.
These 4 companies make 80% of electric two-wheelers sold in India.
If China’s restrictions remain, EV will be expensive
If the restrictions of China remains, then it will see its impact on companies making electric vehicles at the global level. The prices of raw materials will increase, due to which the prices of trains can also go up. Its effect will gradually be seen in all markets including India. Experts in India have warned that if the import from China does not start soon, the production of electric and ICE vehicles may stop.
Manufacturers in India supply 6 to 8 weeks
According to a Business Standard report, EV original equipment manufacturing in India has 6 to 8 weeks of REM supply, while CNBC-Tv18, Sudarshan Wenu, managing director of TVS Motor, said that the impact of China’s sanctions will be seen in June or July production.
China’s about 70% stake in rare materials mining
Let us know that China accounts for about 70% in the mining of rare materials at global level and up to 90% in production. China recently banned export of 7 precious metals (rare economy) among the US growing trade war.
China has also stopped the magnets of magnets required to assemble from cars, drones to robots and missiles. These materials are very important for automobiles, semiconductors and aerospace business.
Export will be done only through special permit
On April 4, China issued an order to ban the export of these 7 precious metals. According to the order, these precious metals and special magnets made from them can only be sent out of China with special permits.
Companies have to give ‘End-Use Certificate’ to order magnets from China. It has to be mentioned that these magnets are not for military purposes.
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