Key highlights
- Royal Enfield Guerrilla 450, Himalayan production affected
- Rare earth minerals supply crisis from China disrupts the production
- Alternative materials are being used to stabilise the production
Royal Enfield has recently accepted that it has been struggling with the rare earth minerals crisis, which has led to the production halt of the 450cc motorcycles as well. Read below what the rare earth crisis is, and how the Chennai-based brand is fighting it.
Also read: Harley-Davidson Street will be the brand’s most affordable bike
Why did the production of the Royal Enfield Guerrilla 450 and Himalayan stop?
In a recent media interaction, Eicher Group MD and Royal Enfield CEO, B Govindarajan, has accepted that the company has been struggling with production fluency due to the rare earth minerals crisis.
As per his official statement, the brand had to cut down the production numbers of its 450cc platform in the first quarter of this financial year, i.e. April-June. This has also reflected on the year-on-year production numbers of the motorcycles.
Royal Enfield motorcycles use the rare earth magnets in the critical components, including the alternator, gear sensors, and even in the engine, which includes the auxiliary electric system.
As per the data from SIAM, the year-on-year production numbers of the 450cc bikes (Geurrilla and Himalayan) for June 2025 are 3,836 units. However, this number was 6,568 units for June 2024, which is almost double this year’s figure.
However, the brand has successfully found a temporary solution to the rare earth minerals issue, and it has implemented the use of unspecified alternative materials. This has brought the production back on track, and the company has now started to cover the pending orders.
The rare earth minerals comprise a majority of the critical mechanical components in automobiles. These minerals, including the magnets, are sourced mainly from China. However, China has stopped the export of these minerals, citing that there is an ongoing shortage.
Our say
While Royal Enfield has found a temporary solution to the rare earth crisis, there is still time to find a perfect replacement. Every other manufacturer is currently fighting with the same issue, where some EV makers have even decided to put a hold on the production of their products.
