Indian EV industry could grind to a halt if China stops exports of heavy rare earth magnets: Rajiv Bajaj

Speaking to Moneycontrol, Bajaj said, “If this is true, it would mean that in a matter of weeks, the entire Indian EV industry will grind to a halt.”

Bajaj explained that heavy rare earth magnets are vital for electric vehicle production and much of the global supply chain for these materials is based in China.
“We are still trying to come to terms with all the facts,” he added, emphasising the serious threat to the sector if China moves forward with the export restriction.

He also spoke about the growing challenges in the global trade environment. Bajaj shared that just days ago, Bajaj Auto was suddenly told to stop shipments of KTM and Triumph motorcycles to the US, a market that, while small in volume, is highly profitable for the company.

“Four days ago, or a little more than that, we received news that we must immediately stop shipments to the US,” he said. However, the situation changed again within a few days, and they were informed that exports could continue.

Bajaj pointed out that companies like his are now dealing with unexpected challenges almost every day, from potential increases in steel prices to uncertainty around key EV components.

“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.