Bajaj, TVS & Ather To Cut Production Amid Shortage In Heavy Rare Earth (HRE) Magnets From China
Electric two wheeler manufacturers brands like Bajaj, TVS and Ather are set to cut production due to shortages in supply of Heavy Rare Earth magnets from China. The shortage has been continuous for 4 months and threatens the growth of the market.
Bajaj Auto is going to halve it’s production output. Ather Energy is also expected to reduce production by 8-10%. TVS, which topped EV two wheeler sales for three months consecutively, is also set to reduce production amid the shortages.
However, Ola Electric will continue the production as they had stockpiled ahead of the shortage concerns. The following four manufacturers account for every 8 out of 10 electric two wheelers sold in the country.
Notably, the central government has been in talks with other nations like Vietnam, Indonesia and Japan. These countries could provide the source for Heavy Rare Earth (HRE) magnets in the interim. It is also important to mention that Society of Indian Automobile Manufacturers (SIAM) had warned that manufacturers may need to scale down production if HRE shortages continue.
It is important to remember that Ola Electric’s ample supply of HRE magnets comes at a strategic time when the company is experiencing underperformance in sales. The production scale down from other manufacturers can prove to be a beneficial for the brand and take advantage of the growing electric two wheeler market.
