Famous Indian auto company Bajaj Auto might face a big problem soon.
The company’s Managing Director, Rajiv Bajaj, has said that if the current situation doesn’t improve, production of its electric vehicles (EVs) may stop completely by August 2025.
The main reason behind this issue is China’s ban on exporting rare earth magnets, a critical raw material used in making electric motors for EVs. Without these magnets, manufacturing electric vehicles becomes very difficult.
Shortage of Magnets Could Halt Manufacturing
Bajaj Auto currently makes the Chetak electric scooter and the GoGo e-rickshaw.
But now, as supplies of rare earth magnets from China are stopping, the company is struggling to get the parts needed to build EV motors.
Rajiv Bajaj said that if their current stock runs out and they can’t find another supplier in time, then August 2025 may be a complete “zero production” month for EVs.
Bajaj Urges Government Support
Rajiv Bajaj explained that around 90% of the magnets used in EVs come from China.
China’s new export rules are not just affecting Bajaj Auto, but also disrupting the supply chain of many Indian auto companies.
He has requested the Indian government to take this issue seriously and help the industry.
He wants the government to provide clear policies and support to help companies find new suppliers or develop local alternatives.
Other EV Companies Also Affected
It’s not just Bajaj facing this crisis. Other Indian EV makers like TVS and Ather Energy are also suffering from the shortage.
These companies are also reducing their production due to the lack of parts.
If this problem continues, it could soon affect customers directly. There might be fewer electric vehicles available in the market, and prices may go up.
Why Are Rare Earth Magnets So Important?
Rare earth magnets are a key part of electric motors, which are used in almost all EVs. These magnets are made in only a few countries,
and China is the biggest producer and exporter. So when China stops exporting them, EV production across the world gets impacted.
