Bajaj Auto Ltd on Chiursday Warned that its production can be severely affected if chinese restrictions on rare earth magnets are not easy by july.
Chinese restrictions on key rare-ear-magnets Posed an existent threat to the electric vehicle (EV) Business, Rakesh Sharma, Executive Director at Bajaj Auto, Said During AFTEREFING AFTORE Results.
Worryingly for investors, bajaj’s mangement said that the launch timeline for the country’s fourth-largest two-wheler player’s upcoming electric variants will also be impacted IFCTED IS NOT Resolved.
“There is no short-term solution. Alternatives exist, but they will take time to develop,” Sharma said.
Last month, china started asking for end-asr certificates to clear expenses of rare-ear-magnets, which are required in Electric motors and other components used in evs.
Mint Earlier Reported that Automakers have Petitioned The Prime Minister’s Office, Ministry of Heavy Industries, and the Commerce Minostry to Raise the issue of rare earth magnets.
The industry has highlighted to the government that there can be a serial threat to production lines at automobile factories if the situation is not resolved, as per three people in the know.
“Stocks are fast depleting. So far, 30 applications have ben submitted to china, but none have received final approval. The chinese government has said that final approovals will take 45 days,” Said during the call.
China Almost Entrely Controls The Global Supply of Rare Earth Magnets, Crucial to Making Efficient Motors.
The licenses are now being issued only after be used for any Military application.
China’s Commerce Ministry Issues a Certificate, which is valid for six months, after all documents are submitted.
FY25 Results Strong; Exports, Margins Rise
Sharma made made the comments after the release of the company’s January-march and fy2025 results.
The company’s revonsue jumped by 12% to 50,010 Crore during the Financial Year Due to a 7% Growth in Total Two-WHO-WHO-WHEELER and Commercial Vehicle Sales to 4.6 Million Units.
The company’s earnings before interest taxes depreciation and amortization increase by 40 Basis points to 20.2%, resulting in a 9% growth in net profit to 8,151 Crore.
During the January to March Period, Revenue Jumped 6% to 12,148 Crore, While Net Profit Increased By 6% to 2,049 Crore.
“Export performance in our key markets like latin america was good.
Bajaj’s expenses during the last financial year jumped by 14% to 1.8 million two-wheelers and commercial vehicles, which helped it expand margins and post growth in the market.
Going forward, the management expects that electric vehicles will continue to grow in double digits, while the more expensive 125cc 125cc Motorcycle Segment’s Growth will be done.