Ather Energy Warns 52,500 PM E-DRIVE Vehicles Could Be Impacted by Rare Earth Magnet Shortage, While Complying with All Guidelines
Shares of Ather Energy are in focus today after the electric two-wheeler maker announced supply chain disruptions caused by China’s export restrictions on heavy rare earth magnets, a key component in EV motors.
The company has requested a temporary waiver from the Ministry of Heavy Industries on the Phased Manufacturing Programme (PMP) requirement related to domestic magnet fitment. As a result, submission of demand incentive claims worth ₹26.25 crore under the PM E-DRIVE scheme has been delayed for affected vehicles, pending clarity from the ministry.
Impact on Production
Ather warned that up to 52,500 vehicles produced or planned under the PM E-DRIVE scheme could be impacted. The magnet shortage forced motor suppliers to make temporary adjustments in traction motor production, particularly in sourcing and installing magnets.
Despite the disruption, the company stated it continues to comply with all PM E-DRIVE and PMP guidelines. Ather has also developed a Heavy Rare Earth Free (HREF) motor, which has secured type approval from the Automotive Research Association of India (ARAI). The company has begun receiving PM E-DRIVE eligibility certificates for multiple models featuring the new motor.
Board Approvals and Stock Options
In addition, Ather disclosed that its board and nomination committee approved the grant of 12.74 lakh employee stock options under its 2025 plan, with 9.7 lakh options allocated to eligible employees and 2.9 lakh to key managerial and senior management personnel.
Market Reaction
On Thursday, Ather Energy shares closed at ₹556 on the NSE, down 4.44%, though the stock has gained nearly 30% over the past month. Investors are closely watching how the company manages the rare earth magnet shortage and the potential impact on incentive claims and production schedules.
With its proactive development of HREF motors and ongoing compliance with government schemes, Ather Energy aims to mitigate supply chain risks while continuing to expand its presence in India’s electric two-wheeler market.
