Exploring alternate strategies on supply chain constrains of rare earth magnets: TVS Motor

Chennai, Jul 31 (PTI) Two and three wheeler maker TVS Motor Company on Thursday said it is just able to manage daily production of its electric vehicles due to supply constraints of rare earth magnets following restrictions on exports imposed by China, and the company is exploring alternate strategies to overcome the challenge.

The Chennai-headquartered firm was also looking at alternate countries for sourcing the rare earth magnets following the challenges faced, Director and Chief Executive Officer K N Radhakrishnan said.

"In the short term, we are managing the stocks with what we have. We are also exploring some alternate strategies in the short term. Like I said, currently, we are managing the daily production and we are just able to manage like that. But if you look at a medium-term and long-term basis, we are also looking at alternate countries," he told analysts in an earnings call.

Elaborating, he said, "Some developments are going on. Okay. I may not be able to tell you the exact timing and all. Today, we are managing on a daily basis with some local stocks with what we have. We will look at other countries (apart from China) also for sourcing. So, it is a combination of many actions which are going on." The recent imposition of export restrictions by China on key rare earth magnets has resulted in supply chain bottlenecks impacting the user industries including the auto and electronics sectors.

China currently dominates the global rare earth magnet supply chain, controlling over 90 per cent of global processing capacity. These magnets are essential components across sectors like automobiles, household appliances and renewable energy.

The Chinese government has mandated, from April 4 onwards, that special export licenses be required for seven rare earth elements and associated magnets.

Earlier, TVS Motor Company reported a 32 per cent year-on-year increase in its consolidated net profit to Rs 610 crore for the April-June 2025 quarter, aided by the highest ever quarterly sales.

The company reported a net profit of Rs 461 crore during the corresponding quarter of last financial year.

Total income rose to Rs 12,250 crore for the quarter under review as compared to Rs 10,355 crore recorded in the year-ago period. PTI VIJ KH