- China’s restrictions on rare-earth exports have hit production but major Indian automakers are still not willing to move away from motors reliant on Chinese magnets
- Indian startups such as Chara and Aditya Avartan have built magnetless motors with comparable specifications and prices, but they have proved hard for Indian OEMs to adapt to their products
- Indian automakers remain risk-averse, underinvested in R&D, and hesitant to adopt unproven technology
- Instead, most are working around the Chinese curbs by stockpiling magnets or sourcing from other countries
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It’s a Saturday morning in Peenya, one of Asia’s largest industrial hubs on the outskirts of Bengaluru, and the Chara Technologies factory is buzzing. Rows of steel housings and copper windings sit neatly on shelves. Behind, torque curves, lamination charts, and controller schematics hang on the walls. Inside a yellow safety cage, a motor designed and manufactured by the company is undergoing tests for its torque rating.
An engineer switches off the dynamometer used to measure the torque, satisfied with the result. “It matches a PMSM on torque,” he declares.
PMSM, or permanent magnet synchronous motor, is the type most widely used in the automotive industry. It uses magnets made from alloys of rare-earth elements like neodymium and dysprosium, which give the motor its high torque density, compact size, and efficiency. Chara, in contrast, produces magnetless motors.
A sound business idea on paper: almost all Indian electric vehicles run on PMSMs and
The Chinese curbs hit Indian automakers hard.
The crisis, then, seemed tailor-made for the likes of Chara, which had been around for over five years before the rare-earth crisis unfolded, to seize the market.
It didn’t take, despite the auto industry having announced plans to
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