Due to a shortage of gear position sensors, Royal Enfield has temporarily reverted to using the old-school neutral indicator
In the automotive space, shortage of rare earth materials is usually reported to impact electric vehicles. However, the less reported fact is that several of the electronic components used in ICE vehicles also rely on rare earth materials. A recent example is that of Royal Enfield 350cc bikes, which are currently being shipped without a gear position indicator. The company has attributed this to the shortage of rare earth-based components. Let’s explore this development in more detail.
Royal Enfield Axed Gear Position Indicator Temporarily
As of now, only the 350cc Royal Enfield bikes are being shipped without a gear position indicator. Dealers have been notified about the same. Buyers will be informed that this is a temporary issue and the gear position indicator setup will be installed once the rare earth-based components are readily available. For now, the 350cc Royal Enfield bikes are being shipped with a neutral position indicator.
Royal Enfield 350cc bikes contribute more than 85% to the company’s overall monthly sales volume. As the numbers are huge, these are the first to be impacted by the shortage of rare earth-based components. Other Royal Enfield bikes in the 450cc and 650cc category are currently not impacted by the shortage of rare earth-based components.
Unavailability of gear position indicator is likely linked to the shortage of gear position sensor. This sensor typically has a magnetic or Hall-effect sensor that detects which gear the shift drum is in. These sensors make use of rare earth magnets, often neodymium (NdFeB), and Hall-effect chips that respond to magnetic fields. Shortage of any one or both could have resulted in the shortage of the gear position sensor.
To deal with the shortage, Royal Enfield has made a smart move to use the traditional neutral indicator. This setup does not need rare earth materials. Instead, it uses a small plunger-type or contact-type switch. A simple electrical circuit lights up the neutral indicator on the dashboard when the gear is in the neutral position. Some users may be impacted by the unavailability of the gear position indicator. However, it is unlikely to be a major problem.
Rare earth supply improving
Efforts are being made to address the shortage of rare earth materials. Discussions are ongoing with China to ease the supply of rare earth materials. Duties on critical minerals have been reduced and local manufacturing is being encouraged via PLI schemes. Agreements have been signed with other countries such as the US, Japan and Argentina to reduce the dependence on imports from China.
Rare earth shortage situation has already started to improve and things are expected to get better in the future. Apart from Royal Enfield, other manufacturers had also reported facing shortage of rare earth-based components. For example, Bajaj had to cut down production temporarily a few months back due to shortage of rare earth magnets. However, as the supply has resumed, Bajaj is back at the number 2 position in the electric 2-sheeler segment. Similar issues were faced by Ather Energy and TVS Motor in the past.
Source
Source: Bike - rushlane.com
