India’s Eicher Motors reported that a shortage of rare earth magnets disrupted its first-quarter production of performance motorcycles due to China’s export ban on the key component, prompting the company to switch to alternative materials.

“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.