The rare earth magnet shortage is becoming a serious challenge for Indian electric two-wheeler manufacturers. Leading EV manufacturers have come out in the open and have indicated that with the restrictions on exports in China, there could be a severe cut in production. It’s been four months since the ban was enforced, and with limited stock, Ather Energy, Bajaj Auto and TVS Motor will be reducing their manufacturing output. According to Economic Times, Bajaj Auto is looking to slash its production by half, and Ather Energy is looking to cut down by 8 to 10 per cent. What is interesting to note is that Ola Electric has confirmed that there will be no dip in its numbers.
Bajaj, Ather, and TVS are forced to cut production
Legacy two-wheeler companies like TVS Motor and Bajaj Auto have been the top two companies in EVs in the last couple of months. With no breakthrough in China’s magnet export curbs, Bajaj Auto has stated that production of Chetak has started to wane. Speaking to ET, Rakesh Sharma, executive director at Bajaj Auto, said, “We’ve started to see some production disruption on the Chetak line. Our R&D and procurement teams are working on alternatives, which are now in advanced stages of development.”
TVS Motor has had a good run in the last three months as the iQube was the number one two-wheeler in India. In June, TVS sold 25,274 units, which is an 80% jump year-on-year as it registered 14,029 units in June 2024. Currently, TVS has a market share of 24%. The company has not revealed how much the rare earth magnet shortage will affect them, but a TVS Motor spokesperson said, “The disruptions in the EV supply chain, particularly concerning magnet availability, continue to pose challenges in the short to medium term. We are working actively to mitigate the prevailing challenges.”
Bajaj sold 23,004 units in June 2025, which is a massive 154% YoY, and has a 22% market share. Ather Energy has been all about steady growth and is currently number 4 after Ola Electric. It clocked 4,512 units last month, which is up 133% YoY, and has a market share of 14%.
Business as usual for Ola Electric
With most of Ola Electric’s competition on the verge of hitting the panic button, the Bengaluru-based EV company has confirmed that it has plenty of supplies of rare earth magnets. Ola Electric is not easing off the throttle, as it gives the company a massive advantage over the others. “There is no impact on production because of the rare earth magnets,” an Ola Electric spokesperson said.
