e2W Firms Gear Up to Ride Out China's Rare Earth Magnet Squeeze

Light rare earth imports, ferrite motors, overseas assembly keep production on track

- SURAJEET DAS GUPTA

Electric two-wheeler (e2W) makers have begun executing a multi-pronged plan to tackle the heavy rare earth magnet supply crunch from China and keep production running through the festival season starting late September, easing early fears of a shutdown.

Leading Indian two-wheeler manufacturer Bajaj Auto, according to senior sources, has imported light rare earth magnets (also called heavy rare earth-free magnets) from China. These are currently undergoing testing at the Automotive Research Association of India. Once cleared, the company plans to import large volumes for installation in its motor sub-assemblies in India.

Experts say these magnets, already tested elsewhere, deliver performance on a par with heavy rare earth motors in e2Ws. Bajaj also won't require an exemption on motors for calculating domestic value addition—a demand made by some rivals.