TVS Motor Faces Supply Challenges Amid China's Export Restrictions

TVS Motor Company, a prominent two and three-wheeler manufacturer, faces significant production hurdles due to China's newly imposed export restrictions on rare earth magnets. These essential components are critical for manufacturing electric vehicles, and the supply bottleneck highlights China's dominance in the global market.

In response, TVS's CEO, K N Radhakrishnan, announced that the company is actively exploring alternative sourcing countries and strategies. He stressed the need to manage with existing stocks in the short term while seeking long-term solutions by sourcing from nations other than China.

This challenge comes amidst TVS Motor's impressive financial performance, showcasing a 32% rise in net profit, attributed to its highest-ever quarterly sales. The paradox of growth amidst supply chain difficulties reveals the nuanced dynamics within the auto industry.

(With inputs from agencies.)