Royal Enfield resumes production after rare earth magnet crisis
Royal Enfield's parent company, Eicher Motors, managed to keep production rolling on its Himalayan, Scram, and Guerrilla bikes—even after China imposed export restrictions on rare earth magnets earlier this year.
Thanks to some quick thinking (and starting work on alternative magnets months prior), they stabilized production after initial disruptions.
Managing Director B Govindarajan confirmed everything is back on track.
Why the rare earth magnet mess matters
China supplies 90% of the world's rare earth magnets, so their export restrictions hit global supply chains hard—especially for Indian bike makers who rely on these parts.
While companies like TVS Motor and Ola Electric are scrambling for alternatives, Royal Enfield's head start paid off.
Eicher Motors's profits are up despite supply chain challenges
Even with all the supply drama, Eicher Motors posted a solid ₹1,205 crore ($137 million) profit last quarter—up 14.7% in sales from last year.
Their stock is up too, showing that investors believe they can handle bumps in the road.