Indian electric 2-wheeler makers face rising costs and supply disruptions
Electric two-wheeler brands in India, like Bajaj Auto, Hero MotoCorp, and Ather Energy, are dealing with a double whammy: raw material costs are shooting up and supply chain hiccups aren't letting up.
Thanks to global tensions and the growing demand for AI tech, making these scooters is getting pricier, squeezing profits and pushing prices higher for buyers.
Lithium jumps, Indian makers hike prices
Key parts like lithium-ion cells, rare earth magnets, and metals (lithium, cobalt, aluminum) have become much more expensive: lithium alone jumped from $8/kg to $24/kg.
To keep up, companies have raised prices; Hero MotoCorp bumped theirs by 2%, and Ather added nearly ₹4,000 this calendar year.
EV makers face higher chip prices
The surge in AI tech is making things trickier for EV makers too.
Memory chips now cost 20-30% more, and some components are even seeing price jumps of two to four times, as manufacturers shift focus toward AI applications.