Representative image of a EV being charged.
Credit: iStock
New Delhi: Auto manufacturers, particularly in the light commercial vehicles segment, need to reduce dependence on rare-earth magnets—mostly imported from China—to cut costs and insulate the industry from disruptions in global supply chains, said Saurav Kumar, founder and CEO of Euler Motors, on Monday.
“We do have technology that allows us to operate without relying on rare earths,” Kumar said. He noted that Euler Motors has already produced thousands of electric three-wheelers without using rare earth magnets.
India relies heavily on China for rare earth magnets, which are widely used in the automotive, electronics, and defense sectors. Recent Chinese curbs on exports of critical minerals have raised alarms across these industries, with the auto sector being particularly affected.
Speaking to DH, Kumar said affordability and performance are key factors in accelerating India’s energy transition. “Most people still prefer diesel or petrol-powered internal combustion engine (ICE) vehicles because of their performance and cost advantage. This is why EV adoption remains limited,” he explained.
Euler Motors on Monday launched an electric mini truck, the Turbo EV1000, starting at an ex-showroom price of Rs 5.99 lakh. The vehicle comes with a certified one-tonne payload. Kumar claimed that the Turbo EV1000’s performance is on par with ICE vehicles in the same price range.
When asked about the impact of the recent GST rate cut on EVs, Kumar said that lower taxes on ICE vehicles have reduced the price advantage of EVs. However, he added that Euler Motors is largely unaffected as most of its vehicles are competitively priced against ICE counterparts.
The government has reduced the GST on small vehicles from 28% plus cess to 18%. For larger vehicles, the tax incidence has come down due to cess removal, while GST on EVs remains unchanged at 5%.