India’s EV scooter industry is entering a new phase as manufacturers increasingly adopt rare earth-free (HRE-free) motors to cut dependency on Chinese imports. With China restricting exports of heavy rare earth magnets, Indian OEMs are now turning to alternative technologies to secure supply chains and lower risks.
Bengaluru-based Simple Energy has taken the lead by starting commercial production of HRE-free motors at its Hosur plant. The company confirmed that despite the technology shift, scooter prices will remain unchanged. Its current models — One Gen 1.5 and OneS — offer up to 248 km range and are priced between ₹1.1 lakh and ₹1.5 lakh.
Looking ahead, Simple Energy aims to scale rapidly with 5,000 unit dispatches per month by October. The company is also expanding its retail footprint from 42 outlets to nearly 100 by year-end and has set its sights on an IPO in FY27, with plans to raise about USD 350 million.
Other established OEMs are also transitioning. Bajaj Auto has begun replacing heavy rare earth magnets with lighter alternatives after a sharp 30% drop in e-scooter sales in August. Similarly, TVS Motor is working on multiple solutions, such as resizing magnets, using ferrite-based designs, and broadening sourcing to reduce reliance on China.
 motors to cut dependency on Chinese imports.){kind=link}