New Delhi, June 12 -- New Delhi/Mumbai: Bajaj Auto's earnings call on the evening of 29 May, replete with revenue and profits and margins and ratios, was trundling along the way such calls usually trundle. And then, as the discussion veered towards electric vehicles (EV), the leadership dropped a bombshell. "It's a threat to the entire EV business," executive director Rakesh Sharma intoned sombrely. "There is no short-term solution. Alternatives exist, but they will take time to develop."

Sharma was referring to China's restrictions on the export of rare earth magnets, imposed the previous month. Rare earth metals are crucial to make the motors that turn the wheels of EVs and China is estimated to control over 90% of the world's producti...