Bajaj Auto Restarts Chetak Deliveries After Rare Earth Magnet Shortage Eases

Bajaj Auto has resumed deliveries of its Chetak electric scooter across dealerships. As per news reports, the company said shipments recommenced on August 20, 2025, after securing a supply of rare earth magnets, which had caused a disruption in production.

Production Disruptions

The shortage of magnets had affected output since late June 2025. Production fell by nearly 50% in July, with August expected to remain at 50-60% of planned levels. The company had earlier warned that inventories could run out completely.

Supply Secured

In a filing, Bajaj Auto stated that it now has sufficient supplies of magnets and other components. The company said this will support deliveries during the upcoming festival season and allow production to scale up to meet demand.

Global Shortage Impact

The disruption followed China’s decision in April 2025 to impose export restrictions on seven rare earth elements. This led to a 75 per cent decline in global magnet exports. India imports the majority of its magnet requirements from China, making local manufacturers dependent on these supplies.

Bajaj’s EV Sales Data

Bajaj’s electric vehicle sales had shown strong growth earlier in the year. According to Federation of Automobile Dealers Association (FADA) data, January 2025 sales stood at 21,310 units, compared with 10,891 units a year earlier. March saw sales peak at 34,907 units, marking a 92% year-on-year increase. However, sales dropped 45% month-on-month in April to 19,001 units, before recovering in May and June to over 23,000 units. July volumes fell again to 19,683 units.

Industry Situation

Other electric two-wheeler makers also faced supply challenges. Hero MotoCorp said it had secured enough components for both its EV and ICE models in the second quarter. TVS relied on larger magnets from local sources, while companies such as Ather continued to face difficulties in fulfilling orders.

Read more: EV 2-Wheeler Sales August 2025: Ather Takes Second Spot as Bajaj Drops!

Conclusion

Bajaj Auto has restarted Chetak deliveries after overcoming component shortages. The disruption highlights India’s reliance on imported rare earth materials for its electric vehicle industry.

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