Bajaj Chetak Launch Plans Affected Amid Rare Earth Magnet Crisis

Bajaj Auto has put its planned launch of a budget-friendly Chetak electric scooter on the back burner as the company grapples with severe shortages of rare earth magnets from China. The Indian manufacturer had previously revealed intentions to introduce an affordable variant of its popular Chetak e-scooter range, targeting the mass market as part of efforts to expand its electric vehicle footprint.

Executive Director Rakesh Sharma confirmed on Wednesday that Bajaj Auto is now prioritising the restoration of normal production levels for its current lineup rather than introducing new models. The magnet shortage has forced Bajaj to slash electric two-wheeler production by up to 50% in July.

(Also Read: Bajaj, TVS, Ather To Cut Short Production Owing To Rare Earth Magnet Crisis)

The supply disruption is expected to affect production output through August and September, with similar production cuts anticipated. Due to the prospect of a complete production shutdown in August, Bajaj engineers found a workaround by substituting light rare-earth magnets for the unavailable heavy variants. This adaptation enabled the company to maintain 50-60% of planned production levels for July and early August. 

Currently, the Bajaj Chetak portfolio comprises four models: the 3001, 3503, 3502, and 3501 variants. Pricing ranges from ₹1.07 lakh for the entry-level 3001 model to ₹1.39 lakh (both ex-showroom price, Delhi) for the premium 3501 version.

(Also Read: Rare Earth Magnet Crisis Looms, Bajaj’s EV Output At Stake)

The Bajaj Chetak 35 Series platform, which debuted in December 2024, has been instrumental in establishing Bajaj's strong position in the electric two-wheeler market. Despite being available for less than six months, Sharma noted there is "big demand, highly underserved" for these models.

The company manufactured 63,600 Chetak units during the first quarter of the current financial year, making it the second-largest player in the electric three-wheeler space behind TVS Motor.