Archive · 26 Sep 2025
Ather Defers Claims, Adapts to Magnet Supply Issues
Ather, an electric vehicle maker, is facing problems because of China's ban on magnets.
These magnets are needed for electric motors.
The company had to delay asking for some money from the government's PM E-DRIVE program.
This is because the company's production process had to change.
The company is also working on a new type of motor that doesn't need these magnets.
The company is talking to the government to get some temporary exceptions to the rules and get back on track.
This will allow them to follow the guidelines again when the supply situation improves.
They also have started receiving certification for the new motors.
Ather Energy deferred ₹26.25 crore in PM E-DRIVE claims.
Supply chain disruptions due to China’s export ban on rare earth magnets is the reason.
Ather adjusted its manufacturing to mitigate the magnet ban impact.
The company is seeking a temporary exemption from domestic fitment requirements.
Ather has developed a heavy rare earth free (HREF) motor and received certification.
- Who
- Ather Energy, Ministry of Heavy Industries (MHI)
- What
- Deferral of claims and temporary adjustments in manufacturing for the PM E-DRIVE scheme
- When
- Announced on September 26, 2025
- Where
- Bengaluru, India
- Why
- Due to supply chain disruptions from China’s ban on heavy rare earth magnets.
Ather's Position
Government's Role
Impact of the Magnet Ban
Ather's Position
Ather faced production and financial setbacks due to the inability to source magnets as per plan.
Government's Role
Government is responsible for ensuring compliance and may consider flexibility.
- Company
- Ather Energy
- Action
- Deferred ₹26.25 crore in claims
- Reason
- Supply chain disruptions (China's rare earth magnet ban)
- Scheme
- PM E-DRIVE
- Impacted Vehicles
- Up to 52,500
- Solution
- Developing HREF motor technology
- Government Interaction
- Seeking temporary exemption
