Electric two-wheeler maker Ather Energy is setting up a wholly owned subsidiary in Hong Kong to support critical procurement functions and strengthen supply chain resilience across the Asia-Pacific region.
In a regulatory filing to stock exchanges, the company said its board has approved the proposal, and the subsidiary will be fully owned by Ather Energy.
The development comes as automakers grapple with supply constraints after China tightened regulations on the export of rare earth magnets, a key component in EV powertrains.
Recently, Ather Energy deferred the submission of demand incentive claims worth Rs 26.25 crore, citing 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 automaker said that China’s export restrictions on certain categories of heavy rare earth magnets have disrupted global supply chains, forcing it to make temporary adjustments in its traction motor manufacturing process through its motor suppliers.
“The WOS [wholly owned subsidiary] is proposed to be incorporated with the primary objective of supporting the Company’s critical procurement functions and enhancing supply chain resilience within the Asia-Pacific (APAC) region,” Ather Energy said.