Archive · 25 Jul 2025
Bajaj Auto May Halt EV Production Amid Rare Earth Crisis
Imagine electric cars need special materials to work, like tiny magnets.
China is the main supplier of these materials, called rare earths.
Bajaj, a big company making electric scooters, is running out of these materials.
They made fewer scooters in July and might not make any in August.
This is because China has limited how much of these materials they are selling to other countries, including India.
This is a problem because India wants more electric cars, but it is hard to make them without these special materials.
The government needs to figure out how to get these materials to keep the electric car industry going.
Bajaj Auto may halt EV production in August due to a rare earth material shortage.
Rajiv Bajaj stated July EV production halved, and August might see zero sales.
China's export restrictions on rare earth materials impact the EV industry.
Bajaj's EV production was at full swing in June but halved in July.
Industry experts warn of disruptions to India's EV transition goals.
- Who
- Bajaj Auto and Rajiv Bajaj
- What
- Bajaj Auto may halt EV production due to rare earth shortage.
- When
- July production halved, and August may see zero sales.
- Where
- India
- Why
- China's export restrictions on rare earth elements are affecting the EV industry.
Government of India
China
Rare Earth Material Supply
Government of India
Facilitate domestic manufacturing of rare earth elements.
China
Restrict the supply of rare earth elements
- Company
- Bajaj Auto
- EV Product
- Chetak, GoGo electric three-wheeler
- Production Status (July)
- Production halved
- Potential Production Halt
- August
- Cause
- Rare earth material shortage
- Source of Shortage
- China's export restrictions