Light rare-earth magnet shipments are clearing earlier, enabling a ramp-up in Chetak production ahead of the festival season, though heavy magnets remain scarce and supply remains volatile.

Bajaj Auto: rare-earth magnet supply improves ahead of India’s festival season

Rajiv Bajaj told CNBC-TV18, as reported by Reuters, that Bajaj Auto’s supply of light rare earth magnets has improved, with shipments beginning to clear about three to four weeks earlier. That improvement has allowed the company to ramp up production of its Chetak electric scooter after a period of disruption.

Bajaj estimated August production of the Chetak at roughly 15,000 units, rising to about 40,000 units in September as magnet shipments speed up and production capacity returns to more typical levels for the festival period. The company had previously warned that August could be a “zero” production month before shipments began clearing.

The supply issues follow export restrictions imposed by China— which produces around 90% of the world’s rare earths—earlier in the year, prompting automakers to seek alternative sources. Reports note that while shipments of light rare earth magnets have started to clear, heavy rare earth magnets remain more difficult to secure.

Several outlets corroborated that deliveries to dealerships resumed in late August, enabling a controlled restart of production and distribution to meet festival-season demand, when vehicle purchases typically rise. Observers say the situation remains dependent on continued magnet availability and that the sector is monitoring whether the current easing in supplies proves durable.

Source: Noah Wire Services