India’s electric scooter market is witnessing a major technological shift as manufacturers accelerate the adoption of rare earth-free (HRE-free) motors, reducing dependence on China for critical magnet supplies.
The transition comes in the wake of China’s export restrictions on heavy rare earth magnets, a vital component in conventional EV motors. This disruption has prompted Indian OEMs to explore alternatives, including ferrite-based and light rare earth (LRE) magnets, to safeguard production and maintain competitiveness.
Simple Energy, a Bengaluru-based EV startup, has taken the lead by commencing commercial production of HRE-free motors at its Hosur facility. The company has assured that scooter prices will remain unchanged despite the shift, with its current models – One Gen 1.5 and OneS – offering ranges of up to 248 km and priced between ₹1.1 lakh and ₹1.5 lakh. Simple Energy plans to ramp up dispatches to 5,000 units per month by October, expand its retail footprint from 42 outlets to nearly double by year-end, and target an IPO in FY27 to raise $350 million.
Other major OEMs are also adapting:
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Bajaj Auto is transitioning from heavy rare earth to light rare earth magnets after reporting a 30% year-on-year drop in August e-scooter sales.
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TVS Motor is exploring short-, medium-, and long-term alternatives, including resized magnets, ferrite-based solutions, and new HRE-free designs, while diversifying supply sources beyond China.
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Ola Electric and Ather Energy are both developing ferrite-based motors to sustain growth. Ola reclaimed the second spot in monthly sales with 16,646 units in August, while Ather achieved record volumes with its family scooter, Rizta.
According to industry data, electric two-wheeler sales in India grew by 12% year-on-year in the first eight months of FY26, with nearly 814,000 units sold.
The industry-wide shift highlights India’s push to localise EV motor technology, strengthen supply chains, and advance sustainable mobility solutions without compromising on performance or affordability.
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