Updated 22 August 2025 at 14:16 IST
Bajaj Auto Rides Over China's Rare Earth Hurdle; Resumes Chetak Deliveries
Bajaj Auto has resumed deliveries of its Chetak electric scooter after resolving supply issues caused by a global shortage of rare earth magnets. With production back to full capacity from August 20, the company has secured key materials to meet strong demand during the festive season.
Bajaj Auto has announced that it has resumed deliveries of its Chetak electric scooter across dealerships after resolving a supply chain disruption caused by the limited global availability of rare earth magnets, a key component in electric vehicle production.
The Rajiv Bajaj-led automaker stated that production and shipments of the e-scooter restarted on August 20, ahead of the timeline initially anticipated. Supplies had been constrained in recent weeks, leading to delays in deliveries at a time when demand for the Chetak continued to rise, the company claimed.
The Pune-based two and three-wheeler manufacturer, in an official release, has now secured adequate magnet supplies and other essential materials to ensure smooth availability during the upcoming festive season.
Eric Vas, President of the company’s Urbanite Business Unit, acknowledged the delay and said deliveries against pending bookings had recommenced. He added, “Bajaj Auto is scaling up output to address demand while maintaining its manufacturing standards.”
The development comes at a time when the electric two-wheeler market in India is witnessing growing competition. Bajaj’s Chetak, revived in an electric avatar in 2020, has steadily gained traction among buyers. According to the company, its market share has doubled since April last year, with Chetak emerging as the leading electric scooter brand in FY25.
Industry analysts note that supply chain risks, particularly around rare earth materials, remain a challenge for electric vehicle (EV) manufacturers globally. Many EV makers have been seeking to diversify sourcing to reduce dependence on a few regions that dominate magnet production.
For Bajaj, restoring production ahead of the festive season is seen as timely, as the period typically drives higher two-wheeler sales, according to industry observers. Ensuring uninterrupted supply could help the company consolidate its position in India’s electric scooter segment, where rivals such as Ola Electric, TVS, and Ather Energy are also expanding aggressively.
Published By : Avishek Banerjee
Published On: 22 August 2025 at 14:16 IST