Bajaj Auto announced on Friday the restoration of its Chetak electric scooter deliveries to all dealerships, following the resolution of supply limitations caused by worldwide rare earth magnet shortages.China’s restrictions on rare earth magnets have been affecting India’s automotive industry. Bajaj Auto had warned a few weeks ago that it may have to suspend production of its electric scooters in August. Bajaj Auto’s managing director Rajiv Bajaj had told ET that August could result in zero production.The company may need to completely stop manufacturing its Chetak electric scooter and GoGo electric three-wheeler in August due to rare earth magnet shortages, Rajiv Bajaj had told ET in July.
China rare earth issues
China maintains its dominant position as the world’s primary supplier of rare earth magnets. These components are crucial for electric vehicles, traditional internal combustion engine (ICE) vehicles, renewable energy installations, consumer electronics, military hardware, aerospace technology, and numerous other industrial applications.Bajaj Auto experienced temporary delivery restrictions due to international component availability issues in recent weeks. The continuous and increasing customer demand for Chetak further intensified the supply challenges, Bajaj Auto said according to a PTI report.The company confirmed that manufacturing and distribution operations resumed on August 20, achieving full operational capacity earlier than expected.Bajaj Auto has confirmed that it has “secured sufficient supply of rare earth magnets and other key materials to ensure availability during the upcoming festive season”.The company’s President of Urbanite Business Unit, Eric Vas, said “Demand for Chetak remains robust, supplies have normalised, and deliveries against bookings have commenced. We are scaling up production to meet rising demand while staying true to our standards of quality and customer delight”.The global automotive industry, including Indian manufacturers, experienced disruption when China imposed restrictions on rare earth magnet exports, an essential component for electric vehicles, following US President Donald Trump’s implementation of tariffs.
