Key highlights
- Ather, TVS, Bajaj to cut down production by up to 50%
- Production has been affected by the ongoing rare earth minerals crisis
- Ola unaffected by the crisis for the month of July
The electric vehicle production is facing a deep crisis due to the rare earth minerals supply being affected by China. Various two-wheeler brands are working on alternatives to keep the EV production intact.
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Ather, TVS, Bajaj to cut down production of electric scooters
As reported online, various electric two-wheeler brands like Bajaj have decided to cut down the production of their respective electric scooters for the month of July 2025.
The latest cut in production comes after the ongoing supply chain crisis of the rare earth minerals and magnets, which constitute a major portion of the manufacturing of electric vehicles.
The biggest source of the rare earth minerals is supplied by China to the global EV manufacturers. While global EV manufacturers are struggling to find alternatives, production cuts are the only reasonable solution for mass manufacturers.
As per the report, Bajaj has decided to cut down the production of the Chetak e-scooter by up to 50%. Meanwhile, Ather has decided to cut the production by 8-10% for July 2025.
TVS has also decided to cut the production numbers of the iQube scooter, but the percentage has not been revealed yet. Although Chennai-based two-wheeler manufacturer TVS has stated that it is finding alternatives to the minerals crisis.
As far as Ola Electric is concerned, the brand is currently unaffected for July 2025. However, the future is uncertain for every EV manufacturer.
Even Maruti Suzuki has cut down the annual production target of its first-ever EV, the e-Vitara. In fact, the brand has pushed the Indian debut of the e-SUV mainly because of the supply chain crisis.
Our verdict
The supply chain crisis of the rare earth minerals and magnets has drastically slowed EV manufacturing globally. Big players like Tesla are struggling with slow production and pushing customer deliveries for the same reason.