Indian manufacturer Bajaj Auto is back on the rare earth supply track. After several weeks of stoppage, production of electric scooters is back on track. This comes just before the festival season, a key period for vehicle sales. Managing Director Rajiv Bajaj confirms a significant improvement in shipments of rare earth magnets.
Global dependence on rare earths
China supplies almost 90% of the rare earths used in the world. However, in April, China banned exports of rare earths, causing disruption to many car manufacturers. This decision forced Bajaj Auto and its competitors to look for alternatives to maintain production. Moreover, rare earth magnets are essential for electric motors, making their availability crucial for the manufacture of electric scooters and motorbikes.
A gradual recovery in production
Rajiv Bajaj said that deliveries of rare earth magnets resumed three to four weeks ago. As a result, Bajaj Auto expects to produce 15,000 Chetak scooters in August, before increasing this figure to 40,000 units in September. This increase reflects the resumption of the flow of raw materials and marks a turning point after a « zero production » month of August for certain electric models.
A strategic opportunity for the festival season
The period from August to October in India is a good time for major purchases, including vehicles. Consumers take advantage of the festivities to invest in electric mobility. By improving its supply, Bajaj Auto hopes to meet the growing demand and consolidate its position in the market. In this way, the manufacturer is preparing to take full advantage of a period that can account for a significant proportion of annual sales.
Towards a more stable future for electricity generation
This resumption of supplies marks an important step for Bajaj Auto. It demonstrates the manufacturer’s ability to adapt to global constraints and secure the resources needed to support the growth of electric vehicles in India.
