Bajaj Auto flags danger of production cuts by July if rare-earth magnet issue remains unresolved

Bajaj Auto has raised alarms over potential production cuts starting in July due to a looming shortage of rare-earth magnets, crucial for electric vehicles (EVs). The company highlighted that Chinese restrictions on these essential materials could significantly hinder their manufacturing capabilities. As a key player in the auto industry, Bajaj Auto's concerns underscore the broader impact such shortages could have on the EV market. Rare-earth magnets are vital components in the motors of electric vehicles, and China's dominance in their supply chain has become a critical point of vulnerability for global manufacturers. Bajaj Auto's warning highlights the urgent need for diversification in sourcing these materials to ensure uninterrupted production. The company emphasized that without resolving this supply chain issue, the growth and sustainability of the EV sector could face significant setbacks. Industry experts suggest that this predicament could prompt automakers to explore alternative technologies or seek new partnerships to mitigate risks. Bajaj Auto's proactive stance in addressing this challenge reflects a broader industry trend of seeking resilience amidst geopolitical uncertainties. As the deadline approaches, the focus remains on finding viable solutions to maintain momentum in the transition to electric mobility.

— Authored by Next24 Live