“We started working on the alternative material at least about three or four months back. Now (the import of) that alternative material is not a major issue,” Eicher’s Managing Director B. Govindarajan told analysts in a post-earnings call.

The shortage of the critical component stalled production of Royal Enfield’s Himalayan, Scram and Guerilla motorcycles, Govindarajan added.

Indian two-wheeler manufacturers, particularly e-scooter makers, are scouting substitutes to rare earth magnets, as China controls 90% of the global production.

Earlier in the day, India’s top e-scooter maker TVS Motor said it was looking for rare earth alternatives used for motors. Ola Electric, meanwhile, had said it has developed rare-earth-free motors, which are to be deployed from the December quarter.

China’s curbs on rare-earth exports have disrupted the global auto industry, with companies warning of a severe supply crunch.

Eicher, whose Royal Enfield leads premium motorcycle sales in India, reported a profit that topped estimates on Thursday, helped by strong local and overseas demand.

The company clocked a profit of Rs12.05 billion ($137.6 million) for the quarter ended June 30, compared with Rs11.01 billion a year earlier, beating analysts’ estimate of Rs11.17 billion, according to data compiled by LSEG.

Its shares closed down 0.2% before the results were announced. They are up 13.4% so far in 2025.