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Rare Earth magnets pose imminent risk to volumes

ICICIdirect Research 04 Jul 2025 DISCLAIMER

Notably, shortage of rare earth magnets has started to impact industry volumes especially on the EV front with recent commentary suggesting production cuts in the near-term starting July 2025.

TVS Motors also called out for the same. Its flagship EV model TVS iQube did wholesale volumes of ~14k units in June 2025 vs. ~28k units in May 2024, a drop of 50% MoM.

As per media sources, Bajaj Auto is looking to halve its output for July 2025 while Ather Energy is seeing a ~8-10% decline.

Developments on the Supply chain of these critical component is the key monitorable for the industry going forward. 

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