TVS flags magnet threat even as scooter profit soars

Curbs on rare earth magnets, imported majorly from China, has prompted TVS Motor to look for other sources

- Ayaan Kartik

TVS Motor Co. Ltd flagged the threat of curbs on rare earth magnets, imported majorly from China, prompting India's third-largest two-wheeler maker by volume to look for other sources for the critical components to ensure its production continues uninterrupted.

To be sure, TVS shared a less dire outlook in its post-earnings commentary on rare earth magnets on Thursday, saying it was able to manage production, unlike Bajaj Auto Ltd, which has warned that it can have severe production cuts starting from August if China does not ease restrictions on export of these key inputs used in electric vehicles, smartphones and fighter jets, among others.