Indian Startup Makes Efficient Motors Without Rare Earth

Most of the motors spinning inside Indian fans and air coolers haven't changed much in 100 years, wasting electricity as heat with every rotation.

Now a startup called Gati Drives has cracked the code on making efficient motors without the rare-earth magnets that usually make them expensive and dependent on imports. Founded in 2023 by engineers Suyash Mishra and Gajendra Jain in Ahmedabad, the company builds motors using Indian-made ferrite magnets instead of the rare-earth materials that China controls.

The difference shows up on electricity bills. Traditional induction motors waste a huge chunk of the power they draw. Gati's motors run at 92 to 94 percent efficiency, turning nearly all their electricity into motion instead of heat.

Mishra and Jain had previously designed similar motors for electric vehicles at other startups. Fresh from earning his electrical engineering degree at IITRAM in 2022, Mishra brought that expertise to everyday appliances like fans, coolers, and ventilation systems.

The company didn't lead with marketing claims. Instead, they sent free sample motors to appliance manufacturers and simply asked them to measure the difference. That approach worked. By February 2026, Gati Drives had moved from prototypes to producing 5,000 motors a month from their Ahmedabad factory.

Their timing matters beyond just energy savings. China's export restrictions on rare-earth materials have left Indian manufacturers choosing between cost and efficiency. Gati's design uses locally available materials and runs on Indian-made microcontrollers, keeping the supply chain at home.

The motors also fix a repair headache. When a typical brushless motor breaks, you replace the whole unit. Gati's design lets technicians swap out individual damaged parts, making fixes cheaper and faster.

The Ripple Effect

Campus Fund led Gati Drives' first funding round in January 2026, backing what founder Richa Bajpai called a convergence of energy efficiency, supply independence, and affordability. The money is going toward certifications, hiring, and scaling up production.

The company has already developed motors up to 200 watts for appliances, with industrial applications planned as the technology proves itself in the market. Starting from their base near Gujarat's appliance manufacturing hub puts them close to the customers who need these motors most.

Every ceiling fan and air cooler running on a Gati motor means lower electricity bills for Indian families and less strain on the power grid during scorching summers.