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Business Standard
03-07-2025
- Automotive
- Business Standard
Matter Motor Works hunts for new tech as rare earth stocks deplete
Electric motorcycle startup Matter Motor Works has enough rare earth magnets to sustain production for three to four months but is actively exploring alternatives, said Founder Arun Pratap Singh in an interview with Business Standard on Thursday. The Ahmedabad-based firm, which has raised $75–80 million since 2019, is working to avoid supply disruptions following China's curbs on rare earth exports. 'Not today. We've got stock for three to four months. But it will become a problem,' Singh said when asked about the impact of the shortage. 'I was in China sometime back. We had a meeting with our supplier. We thought we had a solution, but today, that solution is not working. We're trying to talk to them and find a way forward,' said Singh, who is the group chief operating officer of the company. He added that Matter currently imports only three critical components: rare earth magnets, battery cells, and semiconductor chips — all of which are not manufactured at scale in India. 'Everything else, we have here in India,' he said. 'We have stock for three to four months... then we will have a problem. So for me, the target is to solve this shortage issue within the next two months so that our production is not impacted,' he said. To address the looming supply challenge, Matter is evaluating magnet technologies that do not rely on rare earth elements. 'There are magnet manufacturers in the world who are developing magnets without these rare earth minerals. There are different technologies. We're talking to them too, and at the right time, we will switch over from these magnets,' he said. Launched in October 2024, Matter's first product — the Aera electric motorcycle — is currently sold in Ahmedabad, Jaipur, Bengaluru, Pune, and Delhi. The company plans to expand to 30 outlets across 20 cities by August and has set a sales target of 10,000 units for the current financial year (2025-26), scaling up to 50,000–60,000 units next year. According to Singh, non-rare earth magnets are only 5–7 per cent costlier and offer similar performance — making them a viable alternative as Matter ramps up production. China, which controls a sizeable share of global rare earth supplies, imposed export controls on several critical elements in April, citing national security concerns. These include samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium — metals used in high-performance magnets — along with related alloys and components. The Aera is priced at ₹1.93 lakh for the base model (Delhi ex-showroom). Singh acknowledged that a petrol bike offering similar performance would cost about ₹30,000 less but said electric bike buyers can recover that through lower fuel costs. 'The customer understands that electricity is a cheaper and more predictable fuel,' he said. Matter is also in the process of applying for subsidies under the central government's PM E-DRIVE (Electric Drive Revolution in Innovative Vehicle Enhancement) scheme. This support could lower the effective cost of the bike by another ₹5,000. 'Government support is important for customer confidence, but it is not a primary factor in our pricing,' Singh observed. Matter is targeting younger riders between the ages of 18 and 24, banking on design, performance, and long-term affordability to build traction in the competitive electric two-wheeler market.
Mint
03-07-2025
- Automotive
- Mint
Govt to rollout out subsidy for e-trucks—but with a rider and the clock ticking
New Delhi: The ministry of heavy industries is considering a subsidy of ₹5,000 per kWh of battery capacity for electric trucks, two people said, with about nine months left for its flagship electric vehicles incentive scheme to expire. The government was earlier considering two subsidy options for e-trucks— ₹5,000 per kWh and ₹7,500 per kWh, one of them said. Following consultations with stakeholders last month, 'the ₹5,000 per kWh subsidy is being considered at the moment", this person said. That would amount to a ₹12.5-20 lakh subsidy per e-truck. Mint couldn't ascertain what transpired during the stakeholder consultations. Detailed guidelines for availing subsidies for e-trucks under the PM E-Drive scheme will be notified in a few weeks, said the second person. Both of them requested anonymity. The government, however, will provide incentives for e-trucks only against a certificate that establishes the scrapping of a conventional truck of equal or higher tonnage, as notified in the PM E-Drive (Electric Drive Revolution in Innovative Vehicle Enhancement) scheme. The scheme, which was launched in September. is set to lapse in about nine months, at the end of this financial year. Under it, the government has allocated ₹500 crore towards incentives for buyers of e-trucks. The PM E-Drive scheme has a total outlay of ₹10,900 crore. The government has identified electric trucks as a sunrise sector under the PM E-Drive scheme. Mint reported on 6 April that the government was rushing to assess demand for electric trucks in sectors such as ports, cement, steel, and logistics. 'When it comes to the PM E-Drive incentives, it (the incentive) is pivotal in overcoming the biggest hurdle: the high upfront cost of electric trucks, especially in the N2 and N3 categories," said Nikhil Dhaka, vice president–public policy, Primus Partners, a consultancy firm. 'These vehicles need large battery packs (250-400 kWh), which makes them much pricier than their diesel counterparts." N2 category electric trucks refers to goods carriers with a total weight of 3.5-12 tonnes; N3 refers to bigger goods carriers, weighing 12-55 tonnes. While a conventional diesel N2 category truck costs ₹17-18 lakh, an e-truck of similar weight costs ₹60-64 lakh, Dhaka of Primus Partners said. A diesel N3 truck costs ₹22-24 lakh, while an electric truck of the same weight range costs ₹74-78. The ministry of heavy industries did not reply to queries emailed on 1 July. PM E-Drive in slow gear India's e-truck market is nascent, with 5,356 electric goods carriers sold in FY25, lower than 6,158 units in FY24, as per Vahan, the national vehicle registry. Of these, electric medium and heavy goods carriers, or N2 and N3 categories of e-trucks, accounted for 200-230 units in both FY24 and FY25. Consumers can buy electric two- and three-wheelers, buses, trucks, and ambulances at a discount under the PM E-Drive scheme. The government then reimburses manufacturers for the discounts offered to consumers using subsidies or incentives under the scheme. Dhaka of Primus Partners said subsidies under the scheme are essential for speeding up adoption of e-trucks. 'The commercial EV ecosystem in India is still in its infancy, and financial support is critical to bridging the affordability gap," he said. 'These incentives also reduce the risk for logistics operators, who might otherwise hesitate to be early adopters, and they (the incentives) encourage manufacturers to invest in local production and R&D." However, the government is yet to notify the localisation criteria for electric trucks under the PM E-Drive scheme. The localisation criteria would set into motion the testing process for determining the eligibility of electric vehicles under the scheme. Testing agencies will authorise a particular electric vehicle as eligible for PM E-Drive incentives only if it meets the government's phased manufacturing programme criteria of using only a limited number of imported components. The PM E-Drive scheme includes a ₹4,391 crore package for 14,028 electric buses, but notified the localisation criteria for e-buses only in March this year. Mint reported on 5 May that the government had aggregated demand for more than 15,000 e-buses, well over its target.
