TVS Motor Company said on Thursday that it is just able to manage the daily production of its electric vehicles due to supply constraints of rare earth magnets following restrictions on exports imposed by China. The two and three-wheeler major said it is exploring alternate strategies, which include sourcing from other countries, to overcome the challenge.
“In the short term, we are managing the stocks with what we have. We are also exploring some alternate strategies in the short term. Like I said, currently, we are managing the daily production and we are just able to manage like that. But if you look at a medium-term and long-term basis, we are also looking at alternative countries,” TVS Motor’s Director and Chief Executive Officer K N Radhakrishnan told analysts in an earnings call.
He added that some developments are going on but he will not be able to tell the exact timing. “Today, we are managing on a daily basis with some local stocks that we have. We will look at other countries (apart from China) also for sourcing. So, it is a combination of many actions which are going on,” he said.
China currently dominates the rare earth magnet market, with around 90% of the world's supply. Export restrictions imposed by China in April have forced governments and companies worldwide to seek alternative sources.
Earlier, the Chennai-headquartered company reported a 32% year-on-year increase in its consolidated net profit to Rs 610 crore for the April-June 2025 quarter (Q1FY26), aided by the highest-ever quarterly sales. Total income for the company rose to Rs 12,250 crore in Q1FY26 compared to Rs 10,355 crore recorded in the year-ago period.
TVS’ overall two-wheeler and three-wheeler sales (including exports) grew by 17% to 12.77 lakh units in the quarter ended June 2025 as against 10.87 lakh units registered in the quarter ended June 2024.
Motorcycle sales grew by 21% year-on-year to 6.21 lakh units in Q1FY6 while scooter sales for the quarter grew by 19% at 4.99 lakh units.
Three-wheeler sales for the quarter under review grew by 46% at 0.45 lakh units. Electric scooter sales for the quarter ended June 2025 grew by 35% at 0.70 lakh units as against 0.52 lakh units in the quarter ended June 2024.