TVS exploring alternative strategies to source rare earth magnets, Q1 net profit rises 32%

TVS Motor Company said on Thursday that it is just able to manage the daily production of its electric vehicles due to supply constraints of rare earth magnets following restrictions on exports imposed by China. The two and three-wheeler major said it is exploring alternate strategies, which include sourcing from other countries, to overcome the challenge.

“In the short term, we are managing the stocks with what we have. We are also exploring some alternate strategies in the short term. Like I said, currently, we are managing the daily production and we are just able to manage like that. But if you look at a medium-term and long-term basis, we are also looking at alternative countries,” TVS Motor’s Director and Chief Executive Officer K N Radhakrishnan told analysts in an earnings call.

He added that some developments are going on but he will not be able to tell the exact timing. “Today, we are managing on a daily basis with some local stocks that we have. We will look at other countries (apart from China) also for sourcing. So, it is a combination of many actions which are going on,” he said.