Overview

• July saw Bajaj Auto’s EV production drop by 50%, and managing director Rajiv Bajaj cautioned that unapproved magnet shipments could halt output entirely in August.
• China imposed export licensing on heavy rare earth magnets in April, causing shipments to slump and leaving India out of the eased approvals granted to select countries.
• Bajaj Auto is assessing alternatives to Chinese magnets but warns that redesigning vehicles or supply chains would raise costs and risk product quality.
• Senior industry figures have pressed the government for clearer supply-chain guidelines and a near-term outlook on critical mineral availability for automakers.
• Government agencies are fast-tracking policies and incentives under PLI schemes and the National Critical Mineral Mission to jump-start domestic magnet manufacturing.