Detect my Current Location
Ather is facing a short-term supply challenge as a rare earth magnet shortage from China disrupts dealer inventory supply. CEO Tarun Mehta clarified that the situation is not a full halt in production, but a supply gap affecting dealer demand fulfilment this quarter.
- China controls 90 percent of global rare earth refining
- Ather exploring ferrite motors and other tech to reduce dependency
Rare earth magnets are critical to EV motor production, offering high performance in compact sizes. China currently produces 60 percent of global rare earth production and controls an even larger 90 percent of refining capacity. Since their export restrictions began in April, multiple automotive manufacturers have had to deal with shortages and explore other alternatives.
China’s rare earth export restrictions affect global EV supply chain
Manufacturers are looking at alternatives to bridge gaps
Just last week, we reported that Bajaj Auto might be forced to bring production to a complete halt in August owing to the shortage.
As a result, manufacturers are evaluating other options to address the shortage. Ather, for example, is looking at light rare earth magnets and ferrite-based motors to reduce its dependency. The Bengaluru-based company is also considering partial motor assembly in China as a workaround and is optimistic that supply constraints will ease within the current quarter.
Ather has had a solid recent sales run, surpassing the 4,00,000-unit milestone last week. However, with the festive season traditionally driving higher purchase volumes, the timing of this supply crunch and potential inventory shortfall presents a significant challenge for the company as it looks to maintain its growth.
Also see:
Royal Enfield Himalayan 450 and Guerilla production hit by rare earth supply issue
.jpg?w=234&h=156&q=90&c=1)
Comments
Member Login
Personal Details
No comments yet. Be the first to comment.