Latest news with #ShallySethMohile
Time of India
6 days ago
- Automotive
- Time of India
Govt should give stakeholders greater clarity on rare earth magnets: Rajiv Bajaj
Bajaj Auto MD discusses the extent of the impact of rare earth magnet shortage, looming production halt , and the broader implications for the EV ecosystem in an interview with Shally Seth Mohile. He outlines the challenges in finding short- and medium-term alternatives, uncertainty over government policies, and troubling delays in state-level EV incentive reimbursements. With the festive season approaching and supply chains disrupted, Rajiv Bajaj voices concern not just for his company, but for suppliers, dealers, and industry momentum at large, urging for greater clarity and policy integrity. Question: What has been the impact of the rare earth magnet import curbs on Bajaj Auto? How many days of inventory do you have to ensure continued production of Chetak and electric three wheelers? Rajiv Bajaj: Bajaj Auto had in recent months achieved pole position in both the electric scooter segment with its Chetak and the electric three-wheeler segment with its GoGo. Hence, since our volume requirements are quite high, particularly with the festive season approaching, we have been hit quite hard by the unavailability of heavy rare earth magnets as opposed to some of the smaller low-volume manufacturers. Our component inventory saw us through until June, but we are down by half in terms of production in the current month, and I am afraid that we are looking at a zero month in August as of now. Should that happen, it would be not just a significant impact on our leading share and revenue, but also on our Ebitda (earnings before interest, tax, depreciation and amortisation) as our EV portfolio is now reasonably profitable. Question: What are the alternative mid-to-long term strategies you are looking at to circumvent the shortage? Rajiv Bajaj: In the short-term, there are no alternatives. In the medium-term, the two obvious alternatives are to look for an alternative to the high rare earth magnet and/or to look for an alternative to the source i.e. China. However, changing product design and/or the supply chain is easier said than done because it sets you back on what is already a rather steep learning curve in terms of quality and cost. Have there been any assurances by the policy makers on relaxation of DVA norms under PLI scheme if companies have to rely on import of motors/ sub-assemblies? I believe that there have been discussions with respect to DVA, PLI., etc, in the context of the import of sub-assemblies/assemblies in place of components. While Bajaj has not sought such a waiver, I am supportive of those who have, given that this is an acute situation brought on by unusual circumstances. However, we have not heard anything conclusive in this regard from the ministry or from any other regulatory authority. Question: What implication will it have on the cost of production? Will you be able to pass it on to buyers? Rajiv Bajaj: The per product cost implication is hard to estimate at this stage. There is no doubt that there will be some cost impact ranging from a relatively small one if a suitable product substitute becomes available from the current supply chain to a relatively large amount should this not materialise. Question: What impact will the magnet shortage have on the e-scooter growth story? Rajiv Bajaj: Well, in the scooter segment, EVs have achieved a relatively high penetration of the order of about 25 per cent unlike with cars where I believe that it is still around just 2 per cent. In some of the large metro markets, the penetration is even higher, and in such markets, there will be a definite demand contraction as a section of consumers that are now recalibrated to the joys and advantages of riding an electric scooter will resist reconciling to an ICE product. However, my greater concern is for our suppliers who have invested heavily in EV development and production as well as for our dealers who have set up exclusive distribution facilities for EVs. These relatively small entrepreneurs and their employees will be hit very hard if the current status quo becomes chronic. Finally, the momentum of the progress that the Indian industry was collectively making with EVs in line with the vision of the government will be seriously hampered. Question: What in your opinion can New Delhi do with regards to dialogues with Beijing on the rare earth magnet issue? Rajiv Bajaj: It is not for me to say what our government can do vis-a-vis their Chinese counterparts, but I would certainly say that our government should as much as possible be giving all of the stakeholders mentioned above greater clarity on what the exact situation is and what their best judgement is in terms of the near term outlook. For as of now, except for being given to understand that efforts are on, we know precious little. Question: ET has learnt the Maharashtra government has inordinately delayed reimbursing EV incentives to manufacturers. What has Bajaj Auto's experience been? Rajiv Bajaj: The electric scooter and electric three-wheeler segments are significant in the state of Maharashtra and Bajaj Auto being the market leader by far in both with over 50 per cent market share is entitled to receive a large incentive from the state government basis its EV support policy and which, in turn, we pass on to our customers. However, for over two years now, for reasons that we are unaware of, we have received almost nothing, barring a tiny tranche that came in a couple of weeks ago whereas we have already passed on the entire amount to individual customers. This delay obviously has a significant impact on cash flow, and of course, the state never makes good the loss of interest. But more worrisome is what we informally hear, which is that the state finances may not permit the state to fulfil its policy obligation. Should there be a failure of policy integrity, it will certainly bode poorly for Maharashtra, which is otherwise deemed to be one of the finest destinations for business investment.
Time of India
7 days ago
- Automotive
- Time of India
Govt should give stakeholders greater clarity on rare earth magnets, says Bajaj Auto MD Rajiv Bajaj
Bajaj Auto MD discusses the extent of the impact of rare earth magnet shortage, looming production halt , and the broader implications for the EV ecosystem in an interview with Shally Seth Mohile. He outlines the challenges in finding short- and medium-term alternatives, uncertainty over government policies, and troubling delays in state-level EV incentive reimbursements. With the festive season approaching and supply chains disrupted, Rajiv Bajaj voices concern not just for his company, but for suppliers, dealers, and industry momentum at large, urging for greater clarity and policy integrity. What has been the impact of the rare earth magnet import curbs on Bajaj Auto? How many days of inventory do you have to ensure continued production of Chetak and electric three wheelers? Explore courses from Top Institutes in Please select course: Select a Course Category healthcare others Artificial Intelligence Project Management Management MCA Operations Management Cybersecurity CXO Public Policy Others Data Science Finance Healthcare Product Management Design Thinking Degree Data Analytics MBA Leadership Digital Marketing Data Science Technology PGDM Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML Healthcare Management India Starts on undefined Get Details Bajaj Auto had in recent months achieved pole position in both the electric scooter segment with its Chetak and the electric three-wheeler segment with its GoGo. Hence, since our volume requirements are quite high, particularly with the festive season approaching, we have been hit quite hard by the unavailability of heavy rare earth magnets as opposed to some of the smaller low-volume manufacturers. EV calculator How much will I save if I choose an electric vehicle? SELECT vehicle type Calculate by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Many Are Watching Tariffs - Few Are Watching What Nvidia Just Launched Seeking Alpha Read More Undo Our component inventory saw us through until June, but we are down by half in terms of production in the current month, and I am afraid that we are looking at a zero month in August as of now. Should that happen, it would be not just a significant impact on our leading share and revenue, but also on our Ebitda (earnings before interest, tax, depreciation and amortisation) as our EV portfolio is now reasonably profitable. What are the alternative mid-to-long term strategies you are looking at to circumvent the shortage? In the short-term, there are no alternatives. In the medium-term, the two obvious alternatives are to look for an alternative to the high rare earth magnet and/or to look for an alternative to the source i.e. China. Live Events However, changing product design and/or the supply chain is easier said than done because it sets you back on what is already a rather steep learning curve in terms of quality and cost. Have there been any assurances by the policy makers on relaxation of DVA norms under PLI scheme if companies have to rely on import of motors/ sub-assemblies? I believe that there have been discussions with respect to DVA, PLI., etc, in the context of the import of sub-assemblies/assemblies in place of components. While Bajaj has not sought such a waiver, I am supportive of those who have, given that this is an acute situation brought on by unusual circumstances. However, we have not heard anything conclusive in this regard from the ministry or from any other regulatory authority. What implication will it have on the cost of production? Will you be able to pass it on to buyers? The per product cost implication is hard to estimate at this stage. There is no doubt that there will be some cost impact ranging from a relatively small one if a suitable product substitute becomes available from the current supply chain to a relatively large amount should this not materialise. What impact will the magnet shortage have on the e-scooter growth story? Well, in the scooter segment, EVs have achieved a relatively high penetration of the order of about 25% unlike with cars where I believe that it is still around just 2%. In some of the large metro markets, the penetration is even higher, and in such markets, there will be a definite demand contraction as a section of consumers that are now recalibrated to the joys and advantages of riding an electric scooter will resist reconciling to an ICE product. However, my greater concern is for our suppliers who have invested heavily in EV development and production as well as for our dealers who have set up exclusive distribution facilities for EVs. These relatively small entrepreneurs and their employees will be hit very hard if the current status quo becomes chronic. Finally, the momentum of the progress that the Indian industry was collectively making with EVs in line with the vision of the government will be seriously hampered. What in your opinion can New Delhi do with regards to dialogues with Beijing on the rare earth magnet issue? It is not for me to say what our government can do vis-a-vis their Chinese counterparts, but I would certainly say that our government should as much as possible be giving all of the stakeholders mentioned above greater clarity on what the exact situation is and what their best judgement is in terms of the near term outlook. For as of now, except for being given to understand that efforts are on, we know precious little. ET has learnt the Maharashtra government has inordinately delayed reimbursing EV incentives to manufacturers. What has Bajaj Auto's experience been? The electric scooter and electric three-wheeler segments are significant in the state of Maharashtra and Bajaj Auto being the market leader by far in both with over 50% market share is entitled to receive a large incentive from the state government basis its EV support policy and which, in turn, we pass on to our customers. However, for over two years now, for reasons that we are unaware of, we have received almost nothing, barring a tiny tranche that came in a couple of weeks ago whereas we have already passed on the entire amount to individual customers. This delay obviously has a significant impact on cash flow, and of course, the state never makes good the loss of interest. But more worrisome is what we informally hear, which is that the state finances may not permit the state to fulfil its policy obligation. Should there be a failure of policy integrity, it will certainly bode poorly for Maharashtra, which is otherwise deemed to be one of the finest destinations for business investment.
Economic Times
24-07-2025
- Automotive
- Economic Times
Renault plans to double India parts sourcing, says MD Venkatram Mamillapalle
Reuters Venkatram Mamillapalle, MD of Renanult India Operations, poses for a photograph on the day of the launch of the new Renault Triber in Mumbai, India, July 23, 2025. Shally Seth Mohile Mumbai: Renault plans to more than double component sourcing from India to ₹400 million (about ₹4,055 crore) over the next five years, a senior executive said, as the automaker sharpens focus on making the country a key part of its global supply chain. The company currently buys ₹170 million worth of auto parts from India annually. Renault's move to accelerate component sourcing from India tracks the French automaker issuing a profit warning last week amid weaker-than-expected June sales and headwinds in Europe. It also said it would accelerate cost-cutting measures to improve margins in the second half of this calendar year. "Our ambition is to make India a strong sourcing hub, not only to meet global requirements but also to drive greater value for our Indian supplier ecosystem," Venkatram Mamillapalle, MD at Renault India, told ET on Wednesday. Scaling of component exports will help strengthen the company's supplier base and improve its global competitiveness, he said. The senior Renault India executive was speaking on the sidelines of the introduction of the new Triber on Wednesday. The updated model is likely to challenge Maruti Suzuki's Ertiga and Toyota's Rumion in the compact MPV segment besides compact SUVs. The Triber is the first of four new models Renault will be introducing over the next two years as part of its $600 million investment plan for the Indian market. The company, which has been a fringe player in the local market with less than a 1% share, is looking to reboot its Indian operations with the new model launches. Mamillapalle noted that the company is moving towards faster decision-making and tighter integration under a unified leadership structure, following a shift from the earlier multi-entity model involving Renault, Nissan, and the speculation about potential collaborations with Indian automakers, he said, "There is no reason I need a partner. We have our own design, engineering, manufacturing and network. Somebody else may need my assistance - we don't need anybody's."Bloomberg reported on July 4 that Renault is in early discussions with the JSW Group for a potential joint venture. "We are fully committed to the Indian market, and we believe the next phase of growth will be driven by scale, efficiency, and a sharper product focus," he said.
Time of India
13-06-2025
- Automotive
- Time of India
Morning Brief Podcast: India's Rare Earth Reckoning
Morning Brief Podcast (ET Online) India's Rare Earth Reckoning Anirban Chowdhury | 24:31 Min | June 13, 2025, 6:16 AM IST LISTEN 24:31 LISTENING... As rare earth shortages disrupt global manufacturing, India's auto sector is feeling the crunch. In this episode of The Morning Brief, hosts Anirban Chowdhury and Shally Seth Mohile speak with Ankit Somani (Co-founder, Conifer), Hemal Thakkar (Senior Practice Leader and Director, Crisil Intelligence), and Vinnie Mehta (Director General, ACMA) to unpack how China's tightening grip on rare earth exports is sending shockwaves through India's auto sector. With restrictions on critical elements and magnets used in EVs, defense, and electronics, Indian supply chains are earth magnets up to 15 times stronger than steel magnets and power everything from regenerative braking and sensors to infotainment and battery systems. Yet despite having the world's fifth-largest reserves, India lacks the refining capacity, magnet-making infrastructure, and policy clarity to compete. The result? Deepening dependence on China, which controls more than 85% of global export approvals get entangled in a multi-agency licensing maze, Indian manufacturers are scrambling to respond from redesigning tech to lobbying for domestic capacity. This episode explores whether India can future-proof its clean-tech ambitions or stay magnetized to global risk.
