Bajaj Chetak Deliveries Back on Track as Rare Earth Shortage Eases – Festive Season Boost Ahead?

Bajaj Auto has confirmed that production and deliveries of its Chetak electric scooter have fully resumed from August 20, 2025, after weeks of supply chain disruptions caused by the global shortage of rare earth magnets.

The automaker faced one of its toughest months in July, with sales plunging nearly 47-50%, as stricter export controls from China disrupted the supply of heavy rare earth elements – a critical component for EV motors, dashboards, LED systems, and generators.

Despite the setback, Bajaj has bounced back quickly, securing fresh inventory just in time for India’s upcoming festive season sales surge.

Ola, TVS & Ather Also Hit by Shortages

The supply crisis didn’t just hit Bajaj. Ola Electric, TVS Motor, and Ather Energy also reported slowdowns due to magnet shortages, with Ather even cautioning dealers about delivery delays of up to 7 days.

This supply turbulence reflected in July’s sales charts, where Bajaj slipped to 19,650 units, down 15% from June. Ola and TVS also lost momentum, while Ather managed a slight recovery with its Rizta and 450X series.

Bajaj’s Strategy to Beat Supply Chain Risks

Bajaj is taking bold steps to avoid repeating July’s supply shock. The company revealed two key strategies:

1. Switching from heavy rare earth to light rare earth alternatives, which are easier to source.

2. Developing new magnet technologies that reduce or eliminate rare earth dependency altogether.

According to Eric Vas, President of Bajaj Auto’s Urbanite Business Unit:

“Demand for Chetak remains robust. Supplies have normalised, and deliveries against bookings have commenced. We are scaling up production to meet rising demand while staying true to our quality standards.”

Why This Matters for the EV Market

The Chetak electric scooter has been one of the strongest performers in India’s EV two-wheeler market, with its market share doubling since April last year. Competing directly against Ola S1, TVS iQube, and Ather 450X, the Chetak has carved a strong niche among urban EV buyers.

With supplies now restored, Bajaj is expected to capitalise on the festive buying wave. Industry experts believe Bajaj could regain the No.2 spot in the EV race by Diwali 2025, especially as competitors are still struggling with component bottlenecks.

EVINDIA Analysis: Can Bajaj Overtake Ola by Festive Season?

The big question now: Can Bajaj turn its Chetak momentum into a festive season takeover?

• Ola Electric has been aggressive with offers but saw a dip in July sales.

• TVS iQube remains consistent but is also facing supply pressure.

• Ather Rizta & 450X are growing, but production delays may limit their push.

If Bajaj manages to keep Chetak’s supply chain stable, industry watchers expect it could close the gap with Ola Electric and potentially challenge for the top EV spot by early 2026.