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Bajaj Auto's EV production hit by rare earth magnet shortage
Bajaj Auto just flagged that its electric vehicle (EV) production is taking a hit because of a rare earth magnet shortage.
Executive Director Rakesh Sharma shared that this supply crunch has already slowed things down for the June quarter, and now the company expects to deliver only about half of its planned e-scooters and fewer electric three-wheelers than hoped.
Bajaj is redesigning its EV motors
To get back on track, Bajaj Auto is redesigning its EV motors with lighter rare earth materials and aims to sort things out by the end of FY2026.
Even with these bumps, their EV business now makes up over 20% of home market revenue—up from last year's numbers.
After the news broke, Bajaj's stock dipped 0.7% on Wednesday, adding to a 6.5% drop so far this year.