Bajaj Auto’s electric vehicle (EV) can now brake at the speed of business. Actually, this time the problem is not of any market or technology, but an essential raw material. Bajaj may have to cut the delivery of his vehicles in the second quarter due to lack of rare meaning magnets.

EV business growing stake

• The EV segment of Bajaj Auto has progressed very fast in the last few years. Compared to last year, this year the company’s electric vehicle business has been more than 20% of its total domestic revenue. Whereas last year this share was between 13 and 14 percent. It is clear that the EV business for Bajaj has now become a big and important part.

Warning of delivery decrease

• Rakesh Sharma, executive director of Bajaj Auto, recently told in a press conference that due to lack of rare economy magnets, the company will be able to deliver its electric scooters in this quarter to only 50-60%. At the same time, delivery of electric three-wheeler can remain around 70-80%. This simply means that the supply of EV vehicles in the market will be reduced considerably and customers will have to wait.

Bajaj is searching for solution

• To deal with this crisis, Bajaj has now started finding a solution. The company is trying to re -designs EV motors in such a way that they can also work with light rare meaning. Rakesh Sharma said that the company aims to reduce the dependence on rare economy magnets by the end of FY 2026. Under this strategy, the company is looking for alternative supply chains and technology, so that such obstacles can be avoided in future.

Large concern on China became a big concern

• Rajiv Bajaj, the managing director of Bajaj Auto, has already warned that if China stops exporting heavy rare economy magnets, India’s EV industry may come to a standstill in a few weeks. This is because the need for rare meaning magnets in the manufacture of electric motors is mandatory, and their biggest supplier is currently China. Let us know that the EV business of Bajaj Auto was still showing good growth, but this shortage in the supply of rare meaning magnets can become a big challenge later.

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Ever since China has imposed restrictions on the export of rare economy minerals, the industries around the world have been worried and India is also not untouched by it. But now the Government of India is going to take a big step, so that these necessary magnets can be made in the country itself.

What is the government’s plan?

According to the CNBC-TV18 report, the Government of India is going to promote manufacturing of rare economy magnets at the domestic level by spending around Rs 1000 crore. The Ministry of Heavy Industries and the Department of Atomic Energy are working together on this scheme.

It is being said that this scheme can be finalized in the next 10 to 15 days. Under this, 1500 tonnes of rare meaning magnets will be made in India every year. The entire blueprint of the scheme has not been revealed yet, but 5 to 6 companies have shown interest in it.

Why is this scheme necessary?

Rare Earth Magnets have become very important in today’s world, especially in automobiles and renewable energy sectors. Till now China has been ruling the whole world in this field. But when China reduced their export, there was a huge shortage of raw materials in India too. Therefore, now the goal of the Government of India is to make these magnets in the country itself, so that dependence on China is over.

Big role of India Rare Earth Limited

In this mission, India Rare Earth Limited will be given a big role. According to the report, this company will supply about 500 tonnes of raw material directly to manufacturers, so that the domestic industry can continue production without interruption.

There will also be a separate scheme for rare meaning minerals

Not only the rare meaning magnets, the government is also bringing separate schemes to increase the manufacturing of the rest of the rare meanings. Times of India reports show that for this, Rs 3500 to 5000 crore will be invested. Right now the government is doing its internal assessment, so that this project can be landed on the ground as soon as possible.

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