Bajaj Auto flags threat of production cuts by July if rare-earth magnet issue remains unresolved
Chinese restrictions on key rare-earth magnets posed an existential threat to the electric vehicle (EV) business, Rakesh Sharma, executive director at Bajaj Auto, said during a media briefing after the results.
Worryingly for investors, Bajaj's management said that the launch timeline for the country's fourth-largest two-wheeler player's upcoming electric variants will also be impacted if the situation is not resolved.
'There is no short-term solution. Alternatives exist, but they will take time to develop," Sharma said.
Last month, China started asking for end-user certificates to clear exports of rare-earth magnets, which are required in electric motors and other components used in EVs.
Also Read: Ola Electric's Q4 results will be Bhavish Aggarwal's chance to set the record straight
Mint earlier reported that automakers have petitioned the Prime Minister's Office, ministry of heavy industries, and the commerce ministry to raise the issue of rare earth magnets.
The industry has highlighted to the government that there can be a serious threat to production lines at automobile factories if the situation is not resolved, as per three people in the know.
'Stocks are fast depleting. So far, 30 applications have been submitted to China, but none have received final approval. The Chinese government has said that final approvals will take about 45 days," Sharma said during the call.
China almost entirely controls the global supply of rare earth magnets, crucial to making efficient motors.
The licences are now being issued only after the companies are able to submit an array of documents, including photographs of the product where the magnets will be used and an undertaking that the product will not be used for any military application.
Also Read: Nissan's global layoffs to skip India as it lines up new SUVs
China's commerce ministry issues a certificate, which is valid for six months, after all documents are submitted.
FY25 results strong; exports, margins rise
Sharma made the comments after the release of the company's January-March and FY2025 results.
The company's revenue jumped by 12% to ₹50,010 crore during the financial year due to a 7% growth in total two-wheeler and commercial vehicle sales to 4.6 million units.
The company's earnings before interest taxes depreciation and amortization increased by 40 basis points to 20.2%, resulting in a 9% growth in net profit to ₹8,151 crore.
During the January to March period, revenue jumped 6% to ₹12,148 crore, while net profit increased by 6% to ₹2,049 crore.
'Export performance in our key markets like Latin America was good. KTM's share in our exports was nearly nil in the quarter," Sharma said.
Also Read: New Delhi is promoting hybrid cars on par with electric, upsetting EV makers
Bajaj's exports during the last financial year jumped by 14% to 1.8 million two-wheelers and commercial vehicles, which helped it expand margins and post growth in the market.
Going forward, the management expects that electric vehicles will continue to grow in double digits, while the more expensive 125cc motorcycle segment's growth will be double the industry average.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
38 minutes ago
- Time of India
Jeff Bezos' Blue Origin to launch Indian-origin investor Arvi Singh Bahal and five others to space on August 3 aboard New Shepard rocket; full crew details and launch timing
Blue Origin , the aerospace company founded by Amazon's Jeff Bezos , is preparing for its next milestone in commercial spaceflight. On August 3, 2025, the NS-34 mission will carry six civilians on a suborbital journey aboard the reusable New Shepard rocket. Among the crew is Arvi Singh Bahal , an Indian-origin investor and entrepreneur now based in the US, who will join five other international space tourists. The 11-minute flight will provide breathtaking views of Earth from more than 60 miles above sea level and several minutes of weightlessness, continuing Blue Origin's efforts to make space accessible to non-professional astronauts. Blue Origin's NS-34 includes Indian-origin Arvi Singh Bahal and crypto tycoon Justin Sun The NS-34 mission features a hand-picked crew representing a broad spectrum of nationalities and professions—from cryptocurrency and finance to science, journalism, and education. Arvi Singh Bahal: Born in India and now a US citizen, Bahal is a real estate investor and tech enthusiast who has funded several educational initiatives and space research projects. Known for promoting STEM education among underserved communities. Justin Sun: A prominent Chinese entrepreneur and crypto billionaire, Sun founded TRON, a blockchain-based decentralized platform. He also acquired BitTorrent in 2018 and has been vocal about integrating blockchain technology with space innovation. Sun previously secured a seat on a space mission with SpaceX but is now realizing his orbital dream with Blue Origin. Gokhan Erdem : Hailing from Turkey, Erdem is the CEO of a major logistics and infrastructure company. He has invested in renewable energy and AI applications in construction. His participation highlights the growing interest from industrial leaders in experiencing space firsthand and advocating for sustainable technological progress. Deborah Martorell : A celebrated meteorologist and science communicator from Puerto Rico, Martorell has spent decades educating the public about climate change, weather systems, and planetary science. Her role on NS-34 marks a symbolic journey for Caribbean representation in space and reflects the mission's emphasis on public engagement with science. Lionel Pitchford : A British-born philanthropist and former language teacher, Pitchford has lived in Spain for over 20 years. Known for his humanitarian work with refugees and his advocacy for global education, Lionel's selection aligns with Blue Origin's inclusion of socially impactful figures in its passenger lists. James 'J.D.' Russell : An American venture capitalist and aerospace startup founder, Russell launched Alpha Funds and later Alpha Aerospace, a company working on autonomous drone systems and satellite servicing tech. He brings technical insight to the journey and symbolizes the next wave of space-focused entrepreneurs. Together, this diverse group reflects a new era of spaceflight where civilian explorers from varied sectors and continents share the frontier. Blue Origin New Shepard rocket's launch date, location, and precise timing for Blue Origin's suborbital spaceflight The NS-34 launch is scheduled for Sunday, August 3, 2025, with liftoff expected at 7:30 a.m. Central Time (8:30 a.m. Eastern Time), that is 6:00 p.m. Indian Standard Time (IST) on the same day. The flight will launch from Launch Site One, Blue Origin's private spaceport in West Texas, located about 140 miles east of El Paso and near the US–Mexico border. The secluded desert location is ideal for vertical launches and recoveries, and it has been the site for all previous New Shepard missions. Weather permitting, the countdown will proceed as planned, with final checks on vehicle systems and crew safety protocols completed in the hours leading up to liftoff. What the crew will experience during their 11-minute journey to the edge of space The six-member crew aboard New Shepard will embark on an unforgettable suborbital adventure that compresses the thrill and awe of space travel into just over 11 action-packed minutes. While brief, the mission is carefully designed to offer a complete spaceflight experience—from liftoff and microgravity to atmospheric re-entry and soft landing. After the countdown reaches zero, the New Shepard rocket will blast off vertically from Launch Site One, rapidly ascending into the sky and accelerating to more than three times the speed of sound (over 2,000 mph). Within two to three minutes, the spacecraft will have pierced through the lower atmosphere, its engines roaring beneath the passengers' feet as it climbs toward the Kármán line, located at an altitude of 100 kilometers (62 miles)—the internationally recognized boundary of space. Around this point, the booster stage will separate from the crew capsule. From here, the experience transforms from a rocket ride to pure serenity as the capsule coasts through the vacuum of space in a silent arc. Inside, gravity essentially disappears. As the capsule floats above Earth's atmosphere, the passengers will unstrap from their seats and float weightlessly, experiencing microgravity for approximately 3 to 4 minutes. This is the moment most space tourists describe as life-changing—when they drift freely within the cabin, twist midair, and gaze through the capsule's massive panoramic windows that provide breathtaking, wide-angle views of Earth's curved horizon, the deep blackness of space, and the sun shining unfiltered by the atmosphere. The interior of New Shepard's capsule is designed for comfort and visibility. It features: Six individual reclining seats, each with its own communication and safety system The largest windows flown in space, accounting for one-third of the capsule's surface area Cushioned walls and handholds to make floating safer and more enjoyable Cameras to capture every second of the experience from multiple angles After this brief but powerful encounter with space, the capsule will begin its fall back to Earth, entering the upper atmosphere at subsonic speeds. This portion of the flight is often referred to as a "stable freefall," meaning the capsule falls in a controlled orientation without tumbling. At around 5,000 feet, three large parachutes will deploy, dramatically slowing the capsule's descent. Just seconds before touchdown, retro-thrusters will fire to cushion the final impact, allowing for a gentle, upright landing on the desert floor of West Texas. Rescue crews and Blue Origin staff will be waiting nearby, ready to recover the capsule, assist the passengers, and celebrate their return. The entire journey—from ignition to touchdown—will take about 11 minutes, but for the six space travelers aboard, it will be an experience that lingers for a lifetime. This immersive trip not only gives passengers their first view of Earth from space but also instills a deeper appreciation for the fragility and beauty of our planet—an experience often referred to as the 'Overview Effect' by astronauts who have traveled before them. Where and how to watch the Blue Origin NS-34 mission live Blue Origin will livestream the full NS-34 mission on its official website, beginning approximately 30 minutes before liftoff. The broadcast will include live views of the launch pad, onboard footage from inside the capsule, and mission commentary. Space enthusiasts, students, and curious viewers worldwide can tune in to witness this next step in civilian space exploration. Previous Blue Origin launches have attracted millions of live viewers, and the NS-34 event is expected to do the same. Blue Origin's expanding space program and vision beyond Earth The NS-34 mission continues Blue Origin's ambitious journey in democratizing access to space. Since Jeff Bezos' own flight aboard New Shepard in July 2021, the company has flown over 70 passengers on 13 crewed flights. It has made spaceflight possible for scientists, educators, celebrities, and private citizens alike. Beyond New Shepard, Blue Origin is developing New Glenn, a much larger, orbital-class rocket aimed at competing with SpaceX's Starship. The 320-foot-tall vehicle completed its first test launch in January 2025 from Cape Canaveral, Florida, and may fly again later this year. New Glenn is designed to support both NASA missions and commercial satellite deployments. As Blue Origin moves closer to routine space access, missions like NS-34 prove that the future of spaceflight lies not just in orbit, but in opening the experience to dreamers and doers from all corners of the Earth.
Time of India
39 minutes ago
- Time of India
US defense bill proposes examination of Apple display supplier
A measure added into a massive U.S. defense spending bill in recent weeks will, if passed, ask the Pentagon to determine whether one of Apple's display suppliers should be listed as a Chinese military company. Being on the list does not block companies from doing business in the U.S. but will in coming years block them from being part of the U.S. military's supply chain. The bill, known as the National Defense Authorization Act, was approved in July by key committees in both houses of the U.S. Congress. The final bill, considered a "must-pass" because it funds the U.S. military, is expected to become law later in the year. When the bill was approved by the U.S. House of Representatives Armed Services Committee, a newly added amendment for the first time asked the U.S. Defense Department to consider whether BOE Technology Group Co, listed on Apple's official suppliers list, should be added to a list of firms that allegedly aid China's military. BOE and Apple did not respond to requests for comment. Craig Singleton, a China expert at the Foundation for Defense of Democracies, a Washington think-tank, said Beijing had offered billions of dollars in subsidies, tax breaks and loans to help firms such as BOE dominate global panel production. "This creates a single-source vulnerability that could be easily exploited to disrupt or degrade U.S. military operations, not to mention undermine commercial supply chains, during a conflict or period of heightened bilateral tension with Beijing," Singleton added. A study published last month by New York-based NERA Economic Consulting and commissioned by BOE's U.S. subsidiary found that the display industry, which includes major Korean players such as Samsung Electronics and LG Electronics, remains highly competitive, with no single player capable of significantly affecting global prices. "There is no credible risk of a supply chain disruption by mainland China display manufacturers," the report said.
Time of India
an hour ago
- Time of India
US tariff more biased against Indian automotive, tyre industries as compared to Asian peers: ICRA
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel New Delhi: The 25 per cent US tariff on Indian exports places domestic auto component industry and tyre makers in an unfavourable position as compared with Asian peers like Japan, Vietnam, and Indonesia, which face lower duties, rating firm Icra said on US administration has announced imposition of the tariff on all goods coming from India from August 7."Imposition of a 25 per cent tariff by the US on Indian imports has raised concerns across India's automotive and tyre industries, both of which maintain substantial export exposure to the US market," it the US accounting for 27 per cent of India's auto component exports and 17 per cent of tyre exports, the tariff hike places Indian manufacturers at a disadvantage compared to Asian peers such as Japan, Vietnam, and Indonesia, which face lower or preferential duties, Icra increased tariffs could dent the competitiveness of Indian suppliers, especially in off-highway and replacement tyre segments, and across various automotive components, it Indian tyre exporters previously enjoyed a modest advantage over Chinese competitors, that edge may now be offset by the lower tariff rates granted to other Southeast Asian component exporters, particularly those heavily reliant on the US market, are expected to diversify their geographies and improve cost efficiencies to lessen the impact, it auto components industry reported a turnover of USD 80.2 billion (Rs 6.73 lakh crore) for FY2025, a growth of around 10 per cent as compared with of auto components grew by 8 per cent to USD 22.9 billion (Rs 1,92,346 crore) in FY25 from USD 21.2 billion (Rs 1,75,960 crore) in FY24.
