India’s electric two-wheeler (E2W) makers continue to struggle with the shortage of rare-earth magnets (REM), with no clear resolution in sight, a senior TVS Motor executive said on Thursday.
“I think the situation has impacted the industry. Almost every player has been impacted by that (rare earth shortage). There is no clear one-way forward as of now,” said Gaurav Gupta, president, India 2W Business, TVS Motor Company. He was speaking at a virtual press conference to announce the launch of the company’s new e-scooter, the TVS Orbiter.
Market dynamics shift amid supply crunch
The country’s largest E2W seller has expanded its EV line-up with the Orbiter, priced at Rs 99,900 (ex-showroom, inclusive of the PM e-Drive scheme, Bengaluru and New Delhi). Positioned as an entry-level EV, it sits below the company’s best-selling iQube range.
“We are not out of the woods as yet,” Gupta said, adding that the company was navigating the supply chain crisis on a “day-to-day, week-to-week” basis. “There is speed and agility to try and work on alternative solutions also, but it is still a work in progress. We are following the guidance as available in the marketplace and also from the government,” he added.
In June, TVS Motor chairman Sudarshan Venu had warned that China’s export curbs on rare-earth magnets could trigger major production cuts and potentially bring India’s electric two-wheeler manufacturing to a halt. “This EV supply chain disruption is certainly going to pose a short- to medium-term challenge,” Venu said in an interview.
The supply crunch has already reshaped market dynamics. Bajaj Auto, which first flagged the issue, has slipped to fifth position in monthly E2W sales, delivering only 9,385 units so far and capturing an 11% market share.
Earlier this month, China promised to ease restrictions on rare-earth magnet exports amid improving relations with India. However, industry executives say the situation has yet to improve materially on the ground.
Navigating the crisis with new products and alternatives
Despite the headwinds, TVS retained its leadership in E2W sales for the fifth straight month since April, with 20,461 units sold in August to date, capturing a 24% market share — ahead of Ather Energy (14,723 units) and Ola Electric (14,488 units).
With the Orbiter, TVS is aiming to further consolidate its position. Gupta said the platform has been designed for both domestic and export markets, though he did not specify target regions or volumes.
The Orbiter comes with a 3.1 kWh battery offering an IDC range of 158 km. It features an industry-first 14-inch front wheel for greater stability, an 845 mm long flat seat, and a 290 mm straight-line footboard. The scooter will be offered in two colour schemes and six palettes, including Neon Sunburst, Stratos Blue, Lunar Grey, and Stellar Silver.
Shares of TVS Motor closed flat on the NSE at ₹3,259.90.