The Magnet Crunch: How Rare Earths Impact Electric Vehicles
The automobile industry, led by companies like TVS Motor, faces a supply constraint of rare earth magnets due to export restrictions from China, affecting electric vehicle production. Talks with the government aim for solutions and exemptions under PM eDrive and PLI schemes to ease these difficulties.
- Country:
- India
The automobile industry is reeling from a shortage of rare earth magnets, crucial for electric vehicles, as China's export restrictions create a supply bottleneck. Senior officials at TVS Motor Company disclosed that the situation forces a challenging day-to-day management approach to maintain production volumes.
In response, TVS and other industry leaders are engaging in discussions with the government, seeking to resolve the issue. They are pressing for exemptions on domestic value addition requirements within the PM eDrive and PLI schemes, hoping to mitigate the impact on the rapidly growing electric vehicle sector.
TVS recently launched their new electric scooter, the TVS Orbiter, priced at Rs 99,900. The company has invested Rs 125 crore into this new model, which will gradually roll out across India. While optimism remains about resolving the magnet supply constraints, the industry continues to face significant challenges.
(With inputs from agencies.)
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