Ather's dispatches hit by magnet shortage

Ather is exploring alternatives to tackle the crisis of rare earth magnets and minimise impact on sales

- Ayaan Kartik

Electric 2-wheeler maker Ather Energy Ltd expects its shipments to dealers across the country to suffer a shortfall of volumes worth seven days during the July-September period, as the rare earth magnet crisis will likely hit production of scooters.

The Bengaluru-based firm becomes the second company after Bajaj Auto in the last four months to quantify the impact of the rare earth crisis. Bajaj Auto managing director Rajiv Bajaj has warned that August could be a zero-Chetak month if the crisis is not resolved.

Speaking to Mint after the release of April-June financial results, the management highlighted the impact should be seen from a full-year perspective and the firm will make good the losses in this period.