May 29 (Reuters) - Indian automaker Bajaj Auto

on Thursday warned that any further delays in securing the

supply of rare earth magnets from China could "seriously impact"

electric vehicle production by July.

China controls more than 90% of global processing capacity

for the magnets used for automobiles, clean energy and home

appliances. The country enacted restrictions in April requiring

companies to obtain import permits from Beijing.

Reuters reported on Wednesday that Indian auto industry

groups have sought the intervention of Prime Minister Narendra

Modi's government to help access magnets held at Chinese ports

since April 4.

"We are hoping that in the coming weeks, approvals to ship

are secured by exporters from China based on the declarations by

our vendors," Bajaj Auto's executive director Rakesh Sharma told

analysts during an earnings call on Thursday.

Sharma's comments marked the first public admission of the

implication of China's export restrictions on rare earth

magnets, which could grind Indian auto production to a halt.

Rare earth magnets are used in electric motors that run EVs

as well as parts such as power windows and audio speakers used

in traditional cars.

Sharma termed the current situation as "a dark cloud on the

horizon" and said while a process for end-use declaration for

non-military users has been defined in India, it was yet to be

completed in China.

Bajaj Auto manufactures electric scooters under its "Chetak"

brand as well as electric three-wheelers.

Earlier in the day, the "Pulsar" motorcycle manufacturer

reported fourth-quarter profit above market estimates, as higher

motorcycle exports and foreign exchange gains made up for a

slump in domestic demand.