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India’s EV market is growing rapidly. In 2023, over 1.5 million EVs were sold across segments. In 2024, passenger EV production alone rose by 22.5% year-over-year, reaching approximately 125,500 units. In the journey toward a sustainable and self-reliant India, electric mobility is not just a technological shift—it is a national imperative. As we accelerate towards our sustainable mobility ambitions with Electric vehicles (EV), including 2-wheelers, 3-wheelers, 4-wheelers and commercial vehicles, we must also pause to examine the foundations on which this transition rests. One such foundation is the electric motor, the heart of every EV. And within it lies a quiet but critical vulnerability: our dependence on rare earth magnets.These magnets are essential for permanent magnet synchronous motors (PMSMs), which power the majority of electric vehicles. The motor is not just a component, it is the core of propulsion, converting electrical energy into motion. The magnets inside PMSMs, typically made from neodymium, praseodymium, and dysprosium, are what give these motors their high torque and efficiency. But they also make them vulnerable to geopolitical and supply chain shocks. Magnets are not limited to propulsion. They are embedded in power steering, braking systems, and even wiper motors.
Today, China supplies nearly 90% of the world’s rare earth magnets, and over 80% of India’s magnet imports come from China. In 2024 alone, India’s imports of EV batteries and rare earth magnets from China were estimated at $7 billion, underscoring the scale of our dependency.
China’s recent export restrictions on seven rare earth elements are not merely a trade decision—they are a strategic lever that has already begun to disrupt the global EV supply chain. Some even opine that this move could create a supply chain issue worse than the semiconductor shortage in 2021-23. Indian manufacturers now face delays, increased costs, and bureaucratic hurdles. This has led to production bottlenecks and heightened uncertainty. For a country that aspires to lead in clean mobility, this is a wake-up call to build self-reliant alternatives.
Exploring alternatives: A shared industry imperative
India’s EV market is growing rapidly. In 2023, over 1.5 million EVs were sold across segments. In 2024, passenger EV production alone rose by 22.5% year-over-year, reaching approximately 125,500 units. Looking ahead, 2025 is expected to mark a significant inflection point- production of battery-powered passenger vehicles is projected to grow by 140.2%, reaching 301,400 units. With projections suggesting 80 million EVs on Indian roads by 2030, and most of them relying on PMSMs, the magnet issue is not just a technical challenge—it is a systemic concern.Recognizing this, several global OEMs have begun exploring magnet-free motor technologies. Globally, companies like Tesla, GM, Mercedez Benz, Nissan, and Renault, are exploring or implemented in rare-earth-free designs. In India, OEMs such as Tata Motors, Mahindra, and Ashok Leyland have publicly acknowledged the need to diversify motor technologies and reduce magnet dependency. This shift is not just about risk mitigation—it’s about strategic innovation.
Rare magnets free induction motors further optimised by software
At KPIT, we anticipated this challenge years ago. We began exploring an alternative path—one that would reduce our reliance on imported materials and increase our control over core technologies. That path led us to induction motors.
Induction motors are robust, proven, and importantly, free of rare earth magnets. However, they have traditionally lagged behind PMSMs in efficiency. This is where innovation plays a transformative role. By embedding intelligence into the motor’s control systems through advanced software and electronics, we have worked to bridge the efficiency gap, and in specific applications, have even surpassed it.
Such induction motor solution is not only magnet-free but also well-suited for Indian driving conditions characterized by stop-and-go traffic, variable loads, and diverse terrains. This approach makes it already viable for commercial vehicles like 9-meter buses and 11-ton trucks, where the slight weight penalty of induction motors is negligible. These vehicles form the backbone of India’s logistics and public transport systems. In time, we envision designing solutions all the way down to smaller vehicles, making this innovation scalable across the entire EV spectrum. This aligns closely with the vision of Atmanirbhar Bharat.
A call for the Indian automotive ecosystem
The Automotive Component Manufacturers Association (ACMA) has rightly called for a national strategy to secure critical materials. I would add that we also need a strategy to innovate around those materials—to design systems that are not just efficient, but also resilient and scalable.
In addition to the induction motors approach, other alternative motors such as non-rare earth PM Assisted SynRel motor, high-speed motors, current excited Synchronous motors combined with Advanced Controls can be developed to meet application specific requirements and constraints. These need to be worked upon by the Indian automotive ecosystem including the OEMs, Tier 1s and technology companies like KPIT.
India stands at a defining moment in its mobility journey. The choices we make today will shape not just our roads, but our economy and global standing. Let’s look forward to a future where India leads not by following the beaten path, but by creating its own.
- Published On Jul 16, 2025 at 08:16 PM IST
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