Electric 2W Manufacturing Loses Charge Amid Rare Earth Shortage

Industry racing to fast-track magnet-free designs, diversifying sourcing

- ANJALI SINGH

A global squeeze on heavy rare earth magnets has reduced the Indian electric two-wheeler output, with the country's EV industry racing to fast-track magnet-free motor designs and diversifying sourcing to keep assembly lines moving.

Among major players, Bajaj Auto has already slashed production by up to 50 per cent in July and warned of continued curbs through August and September. Hero MotoCorp has said that it has managed to secure supplies for both ICE and EV models for Q2, while TVS has indicated that they are managing daily production through locally sourced higher-sized magnets.

Among newer entrants, Ather CEO Tarun Mehta clarified that while there is no full halt in production, the supply gap is affecting deal demand fulfillment in Q2.