Bajaj slips behind in August EV sales 2025: August 2025 brought a dramatic shake-up in India’s electric two-wheeler market, as Bajaj Auto—long a stalwart in the EV space—slid behind Ola Electric, Ather Energy, and Hero MotoCorp. This slump, driven primarily by a critical shortage of rare-earth magnets, underscores how supply-chain vulnerabilities can dramatically alter competitive positions in emerging tech sectors.
August’s Market Lineup
- TVS Motor Company retained its leadership, commanding a 24.8% market share in EV scooter sales.
- Ather Energy surged past Ola to clinch the second position with a 17.9% share.
- Ola Electric, although briefly overtaken, regained second place later in the month—selling around 16,646 units (17.4% share), with Ather closely behind at roughly 16,543 units (17.3%).
- Hero MotoCorp, riding strong demand for its Vida scooters, moved ahead of Bajaj to take fourth spot with about a 13% share.
- Bajaj Auto, historically India’s No. 2 EV two-wheeler maker, fell to fifth place amid an over-30% year-on-year drop in electric scooter sales—selling just 11,730 units.
Year-on-Year Growth Trends
- TVS Motor, Ather Energy, and Hero MotoCorp posted robust year-on-year gains of 37%, 65%, and 180% respectively.
- Ola Electric wasn’t immune to headwinds either—its sales dropped by around 31% compared to the same period last year.
The Key Disruptor: Rare-Earth Magnet Shortage
The root cause of the volatility was a sustained shortage of rare-earth magnets, crucial for EV motor manufacture, stemming from China’s export curbs initiated in April. Bajaj Auto was particularly hard hit. By late July, the company warned of a potential “zero month” for its EV output. Its management later confirmed the company expected to deliver only 50–60% of its planned volumes for the July–September quarter. Up until August 20, Bajaj had sold just 7,069 Chetak units compared with 16,818 units a year ago.
Recovery in Sight
However, supply challenges began easing in late August. Bajaj Auto confirmed that light rare-earth magnets had started arriving about three to four weeks earlier, enabling it to ramp up production. The company estimated 15,000 Chetak units sold in August and is targeting around 40,000 in September, just ahead of the festive season. Optimism is rising that Bajaj could reclaim its footing once the supply chain fully stabilizes.
Industry Adapts: Toward Magnet-Light & Magnet-Free Designs
To avoid future disruptions, the EV industry is pivoting toward alternative motor designs. Many are adopting Less Rare-Earth (LRE) permanent magnet grades, reducing dependence on heavy rare-earth elements. In line with this, Ola Electric plans to introduce rare-earth-free motors next quarter—promising zero business-continuity risk, performance parity, and reduced costs. Bajaj’s leadership also anticipates that the company will “de-risk all of this by the end of the financial year” through design changes.
What does this mean for the EV Market?
Bajaj Auto’s August stumble serves as a cautionary tale of how global supply shocks can swiftly alter market leadership—even for established players. Yet, the broader industry’s response—ranging from aggressive product diversification by Ather and Hero to rapid design shifts by Ola and Bajaj—highlights resilience and adaptability.
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