Rare-Earth Magnets (REPM)

Two-wheeler makers buy motors (or make their own) with magnets inside and sell the finished scooter. They are the largest buyers by vehicle count in India's EV market.

This is where the risk became real: Bajaj Auto's Chetak output fell 47% year on year in July 2025 (10,824 units) as magnet shipments from China stalled, before the line restarted in late August. A domestic magnet base directly protects these volumes.

Two-wheeler makers capture the vehicle margin, not the magnet margin. Their benefit from the scheme is supply security; some are also cutting the need for rare earths (Ola's ferrite motor was certified in Oct 2025; TVS is reported, unconfirmed, to be working on one).

• E-two-wheeler demand and PM E-DRIVE incentives
• Second sourcing from Indian magnet plants
• Rare-earth-free motor designs

• Thin magnet inventories at motor suppliers
• Chinese end-use licensing for each importer
• Ferrite motors are heavier and slightly less efficient, so not every model can switch

• Monthly EV unit production vs dispatches
• Commentary on magnet availability
• Share of models on ferrite or reduced-rare-earth motors