Production is expected to rise to 40,000 units in September as festive demand builds
Bajaj Auto has resumed nationwide supplies of its electric scooter, Chetak, after successfully overcoming a shortage of rare earth magnets — a crucial component in electric vehicles.
According to a PTI report, production and dispatches were restarted on August 20, earlier than initially expected. The automaker had faced temporary disruptions in recent weeks due to global supply constraints on rare earth components, which had slowed scooter deliveries.
The company confirmed that operations have now stabilised.
“Demand for Chetak remains strong, supplies have normalised, and deliveries against bookings have begun. We are ramping up production to meet growing demand while maintaining our commitment to quality and customer satisfaction,” said Eric Vas, President – Urbanite Business Unit at Bajaj Auto, in a statement.
The company also assured that it has secured adequate stocks of rare earth magnets and other essential materials to support consistent production and ensure availability during the upcoming festive season, when demand typically peaks.
According to reports, the company began receiving shipments of light rare earth magnets three to four weeks ago, easing a shortage that had stalled output.
China, which accounts for 90% of global rare earth production, banned exports in April, triggering supply disruptions across the auto industry. Bajaj said Chetak e-scooter output is expected to reach 15,000 units in August and rise sharply to 40,000 units in September as shipments accelerate.
The update marks a turnaround from last month, when Bajaj had warned of “zero” production for its electric two- and three-wheelers.
The stock closed largely unchanged at ₹8,685 on Friday.
China lifts ban on rare earth exports
On April 4, China announced export controls on a broad range of rare earths and related magnets as a response to US President Donald Trump’s broader tariffs on goods. The decision disrupted global supply chains vital to automakers, aerospace firms, semiconductor makers, and military contractors.
Earlier this week, China resumed its exports of rare earth magnets and minerals to India, along with fertilizers and tunnel boring machines.
The two countries are on the verge of launching a new chapter in trade relations, following the imposition of heavy tariffs on India by the US. India imports nearly 90% of its rare earth magnets from China.
Overall, India exported goods worth ₹14.25 billion to China in FY24-25, while its imports of Chinese goods stood at ₹113.46 billion, according to India’s Ministry of Commerce and Industry.
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