Automakers try temporary fixes, cut equipment

CHINA'S TIGHTENED GRIP on rare earth metals is already hitting the Indian auto industry: automakers are stripping back equipment.

- Soumyarendra Barik & Anil Sasi

Royal Enfield has tried out a temporary hack for its gear position sensor as the global shortages bite, exposing vulnerabilities in vehicle supply chains. Other automakers too are cutting down on certain non-essential equipment in their vehicles to reduce the usage of rare earth materials as uncertainty over China's green light to export the key materials looms.

In a missive to new customers, Royal Enfield said that it had "temporarily installed" a neutral indication system in the motorbike due to the "ongoing global shortage of rare-earth materials, which are key to manufacturing the magnets in gear position sensors".

"We are working to mitigate these supply chain issues and, as soon as the Gear Position Sensor is available, we will retro-fit it in your motorcycle at no additional cost," the company said.

A source aware of the development said that it was unclear when the company would be able to source the sensor, but was looking at geographies beyond China.