How Tata Motors e-bus momentum slowed

Tata Motors’ e-bus sales dip allowed rivals such as Ashok Leyland, JBM and Olectra to fill in the vacuum.

- SATISH KUMAR/MINT

secure various local incentives.

The government has since allowed electric truck and bus manufacturers to temporarily import such motors as an interim solution.

The magnet crisis and the public tendering model took a toll on Tata Motors e-bus sales, two executives aware of the matter said.

“There was an impact of the rare earth crisis on the production of the company. Moreover, the company has also had concerns with how state transport units have been looking to procure vehicles, which is pushing the burden of ownership on them,” one of the two executives cited above said on the condition of anonymity.

The magnet curbs unfolded while the company was fulfilling a 3,600-bus tender from government-owned Convergence Energy Services Ltd, a Tata Motors spokesperson said. “Towards the final stages of this deployment, we faced some challenges related to the import of rare earth magnets, key components in permanent magnet motors,” the spokesperson said, adding it is “engaged proactively” with the government to seek a temporary relaxation of import norms. This marks the first admission by Tata Motors that the rare earth crisis disrupted its production.