TVS continues to flag rare-earth crisis

T VS Motor Co., India's third-largest twowheeler maker, on Tuesday reiterated shortto medium-term concerns over the availability of rare-earth magnets, calling it a key challenge for its electric vehicle business.

- Abhishek Law [e-mail]

"(Rare-earth) magnet availability continues to pose challenges in the short to medium term," the management said during the post-earnings investor call. "So, possibly if the magnets were available, I am very sure the industry would have done much, much bigger. It is only 8% growth," said K.N. Radhakrishnan, director and chief executive, TVS Motor.

However, the recent goods and services tax (GST) rate cut-fully passed on to customers-is expected to have a "multiplier effect", supporting sales growth in the December and March quarters, the company said while announcing the September quarter results.