CHENNAI: Bajaj Auto has resumed supplies of its electric scooter, Chetak, across dealerships after overcoming a global shortage of rare earth magnets that had disrupted production.
The company restarted production and deliveries on August 20, earlier than expected, bringing relief to customers who had been waiting for their scooters.
Eric Vas, President of Bajaj Auto’s Urbanite business unit, said in a Friday statement that demand for Chetak remains strong and production has now normalised. “We are scaling up output to meet rising demand while ensuring the highest standards of quality,” he added.
Managing Director Rajiv Bajaj added in the company statement that shipments of light rare earth magnets had started arriving a few weeks ago, allowing production to ramp up. Bajaj Auto expects to increase output from about 15,000 units in August to nearly 40,000 units in September, in time for the festive season.
Earlier this year, the company had warned that the shortage of rare earth magnets—largely due to China’s export restrictions—could even lead to a complete halt in production during August. With supply chains stabilising, Bajaj Auto now plans to secure sufficient inventory to meet festive demand.
The resumption of supplies marks a significant recovery for the company’s EV business and ensures that the popular Chetak scooter will be available across all dealerships ahead of the key sales season.