🧠 Food for thought

Implications, context, and why it matters.

Scale-up depends on OEM validation and current certifications

• Chara plans a capacity jump to 100,000 units per year, with nine patents filed and one granted, with certifications from Automotive Research Association of India (ARAI) and International Centre for Automotive Technology (ICAT) 1.
• Its synchronous reluctance motors (a magnet-free design that uses rotor geometry and magnetic reluctance to produce torque) drop rare-earth magnets and claim 15-20% cost savings vs permanent magnet motors 1, with about a 10% weight penalty 2. Torque ripple causes vibration and noise, and Chara says it has largely fixed it 2. Using this design can require original equipment manufacturer (OEM) validation or redesign, which can slow large orders.
• Chara serves nearly 100 customers 1, yet about 60% of revenue comes from off-highway applications (non-road equipment such as industrial machinery) 2. Automotive adoption remains limited despite a Greaves Cotton partnership (an Indian diversified engineering and electric mobility company) 3 and work with several European OEMs 1.

Electrical steel gap opens room for local laminators

• India’s electrical steel market rises from $2.25 billion in 2025 to $3.83 billion by 2031 4. The country relies on imported high-purity iron and silicon 4 for non-grain-oriented electrical steel (a grade for rotating machines like EV motors with uniform magnetic properties).
• Chara’s rare-earth-free motors still need specialized electrical steel laminations (thin stacked sheets that form the motor’s core to cut electromagnetic losses) for rotor construction. India lacks advanced manufacturing at scale for high-quality electrical steel 4, which opens room for local stamping (precision sheet cutting) and annealing (heat treatment).
• For materials suppliers and equipment vendors, projected demand of 40,000 Chara motors by financial year (FY) 2027 1 and broader EV steel needs support investment in precision lamination lines plus automated stacking that cut losses.