Bajaj Auto could have a “zero month” in August for its electric scooter Chetak and electric three-wheeler GoGo because of the shortage of rare earth magnets, managing director Rajiv Bajaj said in an interview. That would make it the first automaker to halt output on account of export curbs imposed by China on the key component.
The scarcity due to China’s move forced India’s second-largest electric scooter maker by volume to halve EV numbers this month though it managed to report full production in June thanks to existing inventory, Bajaj said.
China is the world’s dominant supplier of rare earth magnets, vital for EV manufacturing as well as others such as internal combustion engine (ICE) powered models, renewable energy, consumer electronics, defence and aerospace, and other industrial applications.
Bajaj urged the government to provide all stakeholders greater clarity on the prevailing scenario and the near-term outlook.
On whether the auto industry’s effort to seek relaxation of domestic value add (DVA) norms under the production-linked incentive (PLI) programme has yielded any result, Bajaj said there has been no conclusive information in this regard from the relevant ministry or any other regulatory authority.
To qualify for auto PLI incentives, EV makers must meet rising DVA targets over time.
