Electric vehicle manufacturer faces temporary deviation from manufacturing guidelines affecting up to 52,500 vehicles.
26 Sep 2025 | 8414 Views | By Shruti Shiraguppi
Ather Energy Limited announced it has deferred submission of demand incentive claims worth ₹26.25 crore due to supply chain disruptions caused by China's export ban on heavy rare earth magnets, affecting up to 52,500 vehicles under the PM E-DRIVE scheme.
The electric vehicle manufacturer disclosed that China's export restrictions ...
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Ather Energy Limited announced it has deferred submission of demand incentive claims worth ₹26.25 crore due to supply chain disruptions caused by China's export ban on heavy rare earth magnets, affecting up to 52,500 vehicles under the PM E-DRIVE scheme.
The electric vehicle manufacturer disclosed that China's export restrictions on certain categories of heavy rare earth magnets have disrupted global supply chains, forcing the company to make temporary adjustments in its traction motor manufacturing process through its motor suppliers.
These adjustments resulted in deviations from Phased Manufacturing Program (PMP) guidelines, specifically concerning domestic fitment of magnets in traction motors. The situation was described as beyond Ather's control.
Ather Energy is currently in discussions with the Ministry of Heavy Industries seeking temporary exemption from domestic magnet fitment requirements under PMP guidelines. The company has decided to defer incentive claim submissions until definitive approval is received regarding the deviation.
The company has developed a Heavy Rare Earth Free (HREF) motor as an alternative solution. This motor has received type approval through a CMVR Certificate from ARAI, the designated testing agency.
Ather Energy has begun receiving PM E-DRIVE eligibility certificates for HREF motors across different vehicle models, indicating progress toward compliance restoration.
The company emphasized its commitment to PM E-DRIVE and Phased Manufacturing Program compliance, stating it remains dedicated to Make in India initiatives despite the temporary supply chain challenges.
The disruption underscores a deeper vulnerability in the EV supply chain: its reliance on rare earth materials governed by China’s export controls. Recent policies—such as mandatory export licenses for key elements like dysprosium and terbium—have tightened global access, making EV manufacturers increasingly exposed to geopolitical shifts. As demand surges and supply remains concentrated, the sector faces mounting pressure to diversify sourcing and reduce strategic dependence.