Indian EV industry facing major disruption by July over China's rare earth magnet delays, warns Bajaj Auto

Share via: The Indian EV industry is looking at a major disruption, which could arise from the rare earth magnet supply chain crisis. …Read More The Indian EV industry is looking at a major disruption, which could arise from the rare earth magnet supply chain crisis. View Personalised Offers on Check Offers India’s electric vehicle production will take a hit as early as July this year if China doesn’t resume shipments of rare earth magnets, said Bajaj Auto. The homegrown two-wheeler manufacturer that currently makes the electric scooter Chetak, has warned that any further delays in securing the key component for EVs will severely hit the output of the Indian electric vehicle industry. Reuters has quoted a top Bajaj Auto official saying that any further delays in securing the supply of rare earth magnets from China could seriously impact electric vehicle production by July 2025. Bajaj Auto’s Executive Director Rakesh Sharma told analysts during an earnings call that the company is hoping that in the coming weeks, approvals to ship will be secured by exporters from China, based on the declarations by Bajaj Auto’s vendors. “We are hoping that in the coming weeks, approvals to ship are secured by exporters from China based on the declarations by our vendors,” he reportedly said. Sharma’s comment comes at a time when the Indian auto industry groups have sought the intervention of the Indian government to help access rare earth magnets held at Chinese ports since April 4. China currently controls more than 90 per cent of global processing capacity for the rare earth magnets that are used for automobiles, clean energy and home appliances. The country enacted restrictions in April requiring companies to obtain import permits from Beijing. Sharma’s comments marked the first public admission of the implication of China’s export restrictions on rare earth magnets, which could grind Indian auto production, especially electric vehicle production, to a halt. The rare earth magnets are used in electric motors that run electric vehicles. These rare earth magnets are also used in key components of vehicles such as power windows and audio speakers, which are used in traditional cars. Sharma termed the current situation as a dark cloud on the horizon and said that while a process for end-use declaration for non-military users has been defined in India, it is yet to be completed in China. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 01 Jun 2025, 11:14 AM IST
Source: hindustantimes.com