Bajaj, Ather & TVS to cut e-scooter production this month

Ola Electric seems to be unaffected by the shortage, at least for now.

Indian electric 2-wheeler makers are feeling the heat of the ongoing rare earth crisis. According to media reports, Bajaj Auto, Ather Energy, and TVS are planning to cut production this month due to a shortage of rare earth magnets.

Reports suggest that Bajaj is likely to halve its output, while Ather Energy could reduce production by 8-10%.

“We’ve started to see some production disruption on the Chetak line,” Rakesh Sharma, Executive Director of Bajaj Auto, said. “Our procurement teams are working on alternatives, which are now in advanced stages of development,” he added.

TVS is also expected to slash production targets for this month. A TVS 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.”

Ola Electric seems to be unaffected by the shortage, at least for now. “There is no impact on production because of the rare earth magnets,” an Ola Electric spokesperson said.

Source: ET Auto