Royal Enfield Himalayan 450, Guerilla production was hit by rare earth supply issue

Royal Enfield officials have revealed that the production of RE 450cc platform motorcycles was temporarily disrupted due to supply issues with rare earth elements from China during the April-June period. The company further stated that production has now been stabilized through the use of unspecified alternative materials.

1. ​Royal Enfield Himalayan and Guerrilla 450 production stabilised after rare earth supply disruption

2. 450cc models faced slowdown due to China-dependent magnet shortages

   

3. Alternative materials now in use; EV rollout under Flying Flea brand still on track

Rare Earth issues

Not just EVs, even ICE vehicles have been hit by the rare earth supply crisis.

“In the first quarter, we had that issue [rare earth magnet supply] in those products [450cc platform]. There was a bit of a problem with production,” Eicher Motors MD and Royal Enfield CEO B Govindarajan told investors on Thursday.

“Because those are on performance platforms where rare earth materials were used in gear sensors, alternators, and other areas. So, we had a bit of a pressure point, and we had to stop it.”

The production cut is reflected in the numbers of June and the April-June quarter, when compared on both a year-on-year basis. At the same time, production of other  models was higher during the same period.

Data from SIAM shows that the production of its 450cc models – Guerrilla 450, Himalayan 450 and Scram – was reduced to 3,836 units in June from 6,568 units in June 2024 and 5,249 units in May.

Production now back to normal

Alternative materials have helped the company to stabilise production

While primarily known for their use in electric vehicle motors, rare earth elements are also vital components in internal combustion engine (ICE) vehicles, powering auxiliary electric systems and sensors.

“The team has done a very good job of bringing it back. Scram was not available for some point in time. But that is also now available. And the activities on the 450 Guerrilla platform have also started once again on the ground,” he said.

Future RE EVs incoming

Royal Enfield’s Flying Flea EVs are expected to debut later this year

The supply constraint for magnets comes at a time when Royal Enfield is preparing for the rollout of its first electric motorcycle under the Flying Flea brand towards the end of the current financial year.

“We anticipated it some time back and started working on the alternative material about 3-4 months back. That is why we are currently back on production with the alternative material, which we have protected. Now that alternative material import is not a major issue for us, we are out of that challenging situation,” he added.

Electric vehicle OEMs are actively working to bypass the rare earth supply bottlenecks impacting their production output. These initiatives include the development of magnet-free motor technologies and the adoption of ferrite-based magnets.

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