Home / Business and Economy / Ather Energy Delays Incentive Claims Amid Rare Earth Magnet Shortage
Ather Energy Delays Incentive Claims Amid Rare Earth Magnet Shortage
26 Sep, 2025
Summary
- Ather Energy facing supply chain disruptions due to China's export restrictions on rare earth magnets
- Company seeks temporary waiver from government on domestic magnet requirement
- Delays submission of ₹26.25 crore in demand incentive claims for affected vehicles
On September 26, 2025, Ather Energy, the Indian electric two-wheeler manufacturer, disclosed that it is facing supply chain disruptions triggered by China's recent export restrictions on heavy rare earth magnets, a critical component in EV motors.
The company has sought a temporary waiver from the Ministry of Heavy Industries on the Phased Manufacturing Programme (PMP) requirement related to domestic magnet fitment. Pending clarity from the ministry, Ather has chosen to delay submission of demand incentive claims worth ₹26.25 crore for the affected vehicles.
Ather cautioned that as many as 52,500 vehicles produced or to be produced under the PM E-DRIVE scheme could be impacted by the issue. The disruptions forced its motor suppliers to make temporary changes in the production process, specifically around magnet sourcing and installation.
Despite the challenges, Ather stated that it continues to comply with all PM E-DRIVE and PMP guidelines. The company has also developed a Heavy Rare Earth Free (HREF) motor, secured type approval, and begun receiving PM E-DRIVE eligibility certificates for multiple models as alternatives.
