New Delhi, May 29 -- Bajaj Auto Ltd on Thursday warned that its production can be severely affected if Chinese restrictions on rare earth magnets are not eased by July.

Chinese restrictions on key rare-earth magnets posed an existential threat to the electric vehicle (EV) business, Rakesh Sharma, executive director at Bajaj Auto, said during a media briefing after the results.

Worryingly for investors, Bajaj's management said that the launch timeline for the country's fourth-largest two-wheeler player's upcoming electric variants will also be impacted if the situation is not resolved.

"There is no short-term solution. Alternatives exist, but they will take time to develop," Sharma said.

Last month, China started asking for end-user ce...