Bajaj Auto warns of output cuts over China magnet curbs

China almost entirely controls the global supply of rare earth magnets, crucial to making efficient motors

- Ayaan Kartik

Bajaj Auto Ltd on Thursday warned that its production can be severely affected if Chinese restrictions on rare earth magnets are not eased by July.

Chinese restrictions on key rare-earth magnets posed an existential threat to the electric vehicle (EV) business, Rakesh Sharma, executive director at Bajaj Auto, said during a media briefing after the quarterly results.

Worryingly for investors, Bajaj's management said that the launch timeline for the country's fourth-largest two-wheeler player's upcoming electric variants will also be impacted if the situation is not resolved.