TVS Motor seeks alternative sourcing amidst REM crisis

By Staff Report August 2, 2025 11:05 am IST

TVS Motor is actively looking for alternative sources in the ongoing REM crisis. Presently, the uncertainty in raw material supply has delayed the timeline for vehicle launch.

Due to the REM crisis, TVS Motor is scouting other sourcing options. This move will mitigate the risks posed by the crisis.

According to the top management team, TVS Motor is struggling to meet the production targets. This is still the situation even when China’s restrictions on REMs have caused supply chain bottlenecks. Director and CEO of TVS Motor, K N Radhakrishnan confirmed that the organization is on the hunt of a steady flow of rare earth magnets beyond China. “We are actively working on heavy rare earth element-based solutions and exploring sourcing from alternative countries to reduce dependency,” he said.

To surpass the challenges, TVS Motor is leaning on its existing inventory. “Some developments are in progress. I may not be able to give an exact timeline, but we are looking at other countries apart from China for sourcing,” Radhakrishnan added. Despite the recent announcement on the launch of vehicles, the company is yet to set the timeline. This is because of the uncertainty in raw material supply.

The crisis has already impacted other vehicle manufacturers. August seems bleak as Bajaj Auto faces a dip in inventory.“Our component inventory saw us through until June but we are down by half in terms of production last month and am afraid we are looking at a zero month in August,” Bajaj Auto MD, Rajiv Bajaj said to The Economic Times.

For companies that manufacture two wheelers, a depletion can affect production momentum. The crisis will hamper the industry’s growth.Despite the crisis, leading car manufacturers have not yet experienced production disruption.