Electric bike manufacturers in India are under pressure from rising raw material costs and supply chain disruptions, prompting potential price hikes. Companies like Bajaj Auto and Hero MotoCorp reported significant increases in the costs of lithium-ion cells, rare earth magnets, and memory chips, with lithium prices soaring from about $8 to nearly $24 per kilogram. Bajaj Auto estimates that commodity inflation could impact costs by around 3.5-4.0%, while Hero MotoCorp noted a high single-digit increase in bill-of-material costs. The ongoing geopolitical tensions, particularly the crisis in West Asia, have worsened the situation. Additionally, the growing demand for AI infrastructure is diverting resources away from automotive applications, leading to a 2-4 times increase in memory chip prices. As a result, manufacturers have already begun to absorb some of these costs, but further price hikes are anticipated in the coming quarters. Companies are also exploring ways to mitigate these challenges by redesigning products to lessen dependence on expensive materials.