Why Royal Enfield is using neutral indication system on bikes
China's tightened export procedures on rare earth magnets, which have intensified in 2025, are causing headaches for car makers everywhere.
These magnets power essentials like gear sensors and steering systems.
With shortages hitting hard, Royal Enfield had to temporarily omit gear sensors on its bikes, installing a neutral indication system instead, while other companies dropped gear indicators to save magnets for more critical parts.
China's new licensing process
Since early 2025, China's new licensing process has slowed or blocked magnet shipments to Indian and European automakers.
The delays and rising costs show just how much the auto industry relies on these tiny but crucial components.
Alternatives for car makers
Right now, India can't fill the gap—while it produces some raw materials, it doesn't have the tech to make advanced magnets.
With China controlling over 90% of global neodymium magnet supply (vital for EVs and gadgets), countries are scrambling for alternatives.
Talks between India and China are ongoing to ease restrictions, but until then, car makers are left looking for backup plans.