India’s Electric Two Wheeler Sales Grow by 30% in May 2025 Amid China’s Threat

India's electric two wheeler sales grow by 30% year-on-year to 1,00,266 units in May 2025. TVS Motor Co. Ltd has emerged as India's largest electric two-wheeler maker for a second straight month. That outperformance could sink in just two months due to a China threat. TVS, Bajaj Auto Ltd. And Ather Energy Ltd doubled volumes and Ola Electric's halved, according to VAHAN data on 1st June, 2025.

TVS states in an exchange filing, "While EV sales continue to grow steadily, disruptions in the EV supply chain, particularly concerning magnet availability are expected to pose challenges in the short to medium term".

In April, China suspended the exports of critical rare earth elements, metals and magnets in response to US President Donald Trump's tariff war against Beijing. The move has crippled the supply chain for electronics to automobiles and aerospace.

China now requires importers to submit an application giving details on the end-use of rare earth magnets. Importers should give assurance that materials won't be used in military applications or routed to the US, according to Bloomberg. The process must be initiated by the imported, then endorsed by China before a final clearance. Rakesh Sharma, executive director at the Chetak maker, states during a post-earning conference call, "Indian companies have submitted 30 such applications, none of which have been approved so far".

Source: NDTV Profit