(Reuters) -Indian automaker Bajaj Auto’s supply of rare earth magnets has improved, its managing director Rajiv Bajaj told CNBC-TV18 on Friday, helping the company boost production of electric vehicles ahead of the lucrative festive season.
China, which controls 90% of the global production of rare earths, banned its export in April, forcing automakers including Bajaj Auto and its peers to search for alternatives amid a scramble for supplies.
India’s festival season, which begins from late August in some parts and is stretches into October, is considered an auspicious time for big-ticket purchases like vehicles.
“We started receiving clearance for our shipments of light rare earth magnets about three-to-four weeks back,” Bajaj told the news broadcaster.
He estimated August production of the Chetak e-scooters at 15,000 units, before ramping up to 40,000 units in September as he sees rare earth shipments speeding up in the coming weeks.
Last month, Bajaj told the channel that August would be a “zero” production month for its electric two- and three-wheelers.
(Reporting by Nandan Mandayam in Bengaluru; Editing by Janane Venkatraman)
