Ather Dispatches to Fall Short as Magnet Crunch Hits Output

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

- Ayaan Kartik

The Bengaluru-based company is the second 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 the April-June financial results, the Ather management highlighted that the impact should be seen from a full-year perspective and the company will make good the losses in this period.

"From a dispatch perspective, there might be an impact on 6-7 days of volume. It would impact our revenue. The time horizon is the entire year, so we would make up for it," said Ravneet Phokela, chief business officer.