Aluminum price surge and regional supply disruptions hit India's electric two-wheeler industry

A global aluminum shortage is likely to lower electric two-wheeler margins in India, as prices close to four-year highs push up production costs and lead to some price hikes. Supply problems in the Gulf and higher commodity prices put pressure on EV affordability, while makers try to manage costs, prices, and demand in a competitive market.

Electric two-wheeler makers are bracing for a tough April after record sales in March, as a global aluminum shortage threatens to push up production costs, squeeze margins, and lead to price hikes that could weaken consumer demand. Aluminum prices are around USD 3,500-3,600 per tonne on the London Metal