China's export halt may cripple Indian EV sector: Rajiv Bajaj
What's the story
Rajiv Bajaj, the Managing Director of Bajaj Auto, has sounded an alarm over the potential for China to stop exports of heavy rare earth magnets, which are critical components in EV motors. Speaking in a recent interview with Moneycontrol, he said that a halt in exports from China could result in the Indian EV industry grinding to a halt.
Concerns
Rare earth magnets: Crucial for EV production
Bajaj stressed the importance of heavy rare earth magnets in the manufacturing of electric vehicles. He pointed out that a large chunk of these materials' global supply chain is rooted in China. "We are still trying to come to terms with all the facts," Bajaj said, emphasizing the serious threat to India's EV sector if China goes ahead with its export restrictions.
Trade disruptions
Recent experience with trade challenges
Bajaj also shared his company's brush with unforeseen global trade challenges. He revealed that just days ago, Bajaj Auto was ordered to stop shipments of KTM and Triumph motorcycles to the US market. However, the decision was reversed soon and exports were allowed to continue.
Market volatility
Bajaj highlights daily unpredictability in global trade
Bajaj further emphasized the unpredictability that companies like his deal with on a daily basis. He cited potential hikes in steel prices and uncertainty over key EV components as examples of such challenges. "So, whether it's at the front end or at the back end, every day there is a surprise to be dealt with," he said.