Bajaj Chetak Production Resumes After Brief Pause Caused By Rare Earth Magnet Shortage

Bajaj Auto has announced it has overcome one of the biggest challenges facing its electric two-wheeler business. With rare earth magnets sourced from China in short supply over the last few months, most manufacturers of electric two-wheelers have had to recalibrate production schedules, and Bajaj was hit hard, with a brief pause causing production of the Chetak to reportedly drop to just under 11,000 units in July. However, Bajaj now says it has secured sufficient rare earth magnet supply to be able to fully resume production of the Chetak.

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Chetak is currently the only electric two-wheeler offering from Bajaj.

The company restarted full-scale manufacturing of the Chetak on August 20 – well ahead of schedule, in the company's words – along with restarting deliveries of the electric scooter across all dealerships in the country. In a statement, the company explained ‘In recent weeks, temporary supply constraints linked to international component availability had moderated deliveries. The sustained and growing demand for Chetak added further pressure on supply.’

Eric Vas, President, Urbanite Business Unit, Bajaj Auto, said, “We appreciate our customers’ patience. 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 standards of quality and customer delight.” 

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The 3001 is the most affordable variant in the Chetak line-up.

Bajaj has secured enough rare earth magnet and related component supplies to ensure availability is not affected as the festive season kicks off, the company said in a statement. The Chetak is presently available in four variants – 3001, 3501, 3502 and 3503 – with prices ranging from Rs 1.02 lakh to Rs 1.35 lakh (all prices, ex-showroom).

The pause in production has visibly affected Chetak sales in August. As per the latest registration data, till August 22, Bajaj has sold just over 11,000 units of the Chetak, which means it is in a real contest for the second spot on electric two-wheeler sales charts with Ather Energy, which has also sold nearly 11,000 scooters so far this month. Ola Electric is also in hot pursuit, with 10,380 units registered this month. TVS, meanwhile, continues to lead the way with over 17,000 electric two-wheelers sold in August.