Why Maruti, Bajaj, and Ather Are Facing Unseen Roadblocks This Festive Season

Indian automakers are taking multiple actions to adjust their supply plans and personal application strategies amid the ongoing rare earth magnet shortage:

Bajaj Auto

Production Cutbacks: Bajaj Auto has slashed production of its electric two-wheelers (e-scooters) by 40-50% for the current quarter and projects fulfillment of only 50–60% of planned e-scooter deliverie.
Potential Production Halt: The company warns of a possible complete halt (“zero month”) for its Chetak electric scooter and GoGo electric three-wheeler by August if the shortage continues.
Mitigation Strategy: Bajaj is exploring motors that use more accessible light rare earth materials and intensifying its hunt for alternate suppliers to reduce dependence on Chinese exports by March 2026.
Policy Advocacy: Managing Director Rajiv Bajaj has called for greater government action and transparency, noting there are currently no reliable short-term domestic alternatives for the critical magnets.

Maruti Suzuki

Output Reduction: Maruti Suzuki has reduced its near-term EV production target for the e-Vitara by two-thirds, now targeting only 8,200 units from April to September 2025 (down from 26,500). The company aims to ramp up production later in the year, with over 58,000 units targeted from October to March, to meet its annual goal as supply stabilizes.
Strategic Adjustment: The automaker is restructuring its production schedules and launch timelines to adapt to volatile supply. Efforts are in progress to secure alternative material sources and invest in local supply chains.

Ather Energy

Retail Supply Gap: Ather is managing a short-term supply gap at dealerships, expected to last up to a week this quarter due to the disruption. The company is using existing inventory buffers to minimize retail impact.
Tech Innovation: Ather is actively exploring a switch to light rare earth magnets (currently not under restriction), ferrite-based motors, and even considering partial motor assembly in China as temporary solutions.
Growth Commitment: Despite disruptions, Ather is maintaining its aggressive store expansion and production ramp-up plans for the festive season but acknowledges the timing could limit festival sales.

Mahindra & Mahindra

Inventory Build-Up: Mahindra has proactively stockpiled rare earth magnets from alternative sources, ensuring about nine months of buffer inventory, thus shielding near-term production.
Engineering Alternatives: The company is pursuing long-term engineering solutions to minimize future risks, including research into alternative motor technologies that use fewer or no rare earth materials.

Broader Industry Actions

Local Supply Chain Push: Indian automakers and advanced material firms are collaborating with government agencies to fast-track domestic production of rare earth magnets. Companies like Midwest Advanced Materials and Entellus Industries are aiming for Indian production capacity by late 2026.
Alternative Sourcing: Automakers are diversifying supply by seeking Japanese, Vietnamese, or Indonesian partners, but large-scale sourcing remains constrained in the short run.

Summary Table: Key Adjustments by Major Indian Automakers

Automaker	Immediate Action	Medium-Term Response	Personal/Consumer Impact
Bajaj Auto	40–50% EV production cut	Sourcing light rare earth/finding alternates	Reduced Chetak/Gogo availability, festive delay
Maruti Suzuki	65% e-Vitara output cut	Reshuffling production to H2, local sourcing	Slower rollout, possible delivery delays
Ather Energy	1-week dealer gap, inventory buffer	Shift to magnet-free/ferrite motor, China partial assembly	Potential delays; most sales proceed as planned
Mahindra	9 months inventory cover	Engineering alternatives, local R&D	No short term impact, longer term stability

In essence: Indian automakers are responding with production cuts, revised rollouts, tech innovation, inventory builds, and accelerated domestic R&D and supply initiatives. For consumers, this may mean limited EV availability, potential waiting periods, and delayed new model launches—especially during the crucial upcoming festive season. However, efforts are underway to stabilize supply and reduce long-term foreign dependence.

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