China's Magnet Ban Shocks India's EV Plans: TVS Motor Warns of Price Hikes & Production Delays

India’s electric vehicle (EV) industry is facing a big challenge. China — which supplies almost 90% of the world’s rare earth magnets — has started restricting exports of these key materials. These magnets are crucial parts of EV motors, helping them run smoothly and efficiently. Without them, making electric vehicles becomes tough. After Bajaj Auto, now TVS Motor has raised an alarm. MD Sudarshan Venu warned that if the situation doesn’t improve, EV production could slow down or even stop by June or July. This might lead to higher prices for electric two-wheelers. Why is this happening? China has made it mandatory to declare how the magnets will be used, with a long certification process. Even after approval in India, final clearance is needed from China, causing delays. Current status: • Around 30 shipments are stuck, waiting for China’s go-ahead. • This is already causing supply chain stress for companies like TVS and Bajaj. What’s the solution? TVS says India must urgently build its own local supply chain for EV components to avoid such risks in the future. Developing alternatives will take time and investment, but it's necessary for long-term stability. Stock impact: TVS Motor shares dipped 1% today. However, the stock is still up 16% in 2025 so far. Bottom line: China’s move could slow down India’s EV journey. Companies are racing to find solutions — but for now, production and prices may be hit.