The impact of China’s restrictions on rare earth magnets is being felt by Bajaj Auto, a major player in the electric scooter market. Production of the Chetak electric scooter has been significantly affected. SIAM data indicates that Bajaj Auto’s Chetak production fell to 10,824 units last month, a substantial drop of 47% compared to July 2024. This decline highlights the challenges posed by the scarcity of rare earth materials, essential for electric vehicle components.
The shortage has led to a reduction in the supply of Chetak scooters to dealerships, with a 42% year-over-year decrease. This marks the lowest figure for the year. Bajaj Auto is actively seeking solutions to mitigate the impact, including exploring alternative magnet technologies and potentially reducing reliance on rare earths. While other manufacturers, like TVS and Ather Energy, haven’t experienced the same level of disruption, the situation underscores the importance of securing a stable supply chain for key materials in the electric vehicle industry.