Maruti Suzuki has lower near-term production targets for its maiden electrical automobile e-Vitara by two-thirds due to rare earths shortages, a doc confirmed, within the newest signal of disruption to the auto trade from China’s export curbs.
India’s high carmaker, which stated on Monday it had not seen any influence but from the provision crisis, now plans to make about 8,200 e-Vitaras between April and September, versus an authentic aim of 26,500, based on an organization doc seen by Reuters.
It cited “supply constraints” in rare earth supplies which are important in making magnets and different parts throughout a spread of hi-tech industries.
Maruti nonetheless plans to satisfy its output goal of 67,000 EVs for the yr ending March 2026 by ramping up production in subsequent months, the doc stated.
China’s curbs on some rare earth exports have rocked the worldwide auto trade, with firms warning of extreme provide chain disruptions. While some firms within the United States, Europe and Japan are seeing provides easing as they safe licences from Beijing, India remains to be ready for China’s approval amid fears of production stoppages.
Launched amid a lot fanfare at India’s automobile present in January, the e-Vitara is essential to Maruti’s EV push within the nation, marking its entry in a section that Prime Minister Narendra Modi’s authorities needs to develop to 30% of all automobile gross sales by 2030 from about 2.5% final yr.
The setback may additionally harm guardian Suzuki Motor, for which India is the largest market by income and a world production hub for EVs. The bulk of the made-in-India e-Vitaras are earmarked for export by Suzuki to its main markets like Europe and Japan round summer time 2025.
Maruti instructed reporters final week the rare earths situation had no “material impact” on the e-Vitara’s launch timeline. Chair RC Bhargava stated there was “no impact at the moment” on production, native media reported on Monday.
Maruti and Suzuki didn’t reply to requests for touch upon Tuesday.
Maruti shares buying and selling on the Indian inventory trade fell as a lot as 1.4% to the day’s low after the information.
Maruti is but to open bookings for the e-Vitara with some analysts warning it’s already late to launch EVs on the earth’s third-largest automobile market the place Tesla can be anticipated to start gross sales this yr.
Under its earlier plan “A”, Maruti was to provide 26,512 e-Vitaras between April and September – the primary half of the fiscal yr. Under the revised plan “B”, it can manufacture 8,221, the doc confirmed, indicating a two-thirds lower in its production schedule.
However, within the second half of the monetary yr – between October and March 2026 – Maruti plans to ramp up production to 58,728 e-Vitaras, or about 440 per day at its peak, versus a earlier goal of 40,437 for these six months underneath plan A.
Two provide chain sources confirmed Maruti’s plan to cut back e-Vitara production due to rare earth magnet shortages however weren’t aware of the precise numbers.
The rare earths crisis comes as Maruti is already grappling to get better market share misplaced to Tata Motors and Mahindra & Mahindra’s feature-rich SUVs. These firms additionally lead India’s EV gross sales. Maruti’s share of India’s passenger automobile market is all the way down to 41% from a latest peak of about 51% in March 2020.
Suzuki has trimmed its gross sales goal for India to 2.5 million automobiles by March 2031 from 3 million beforehand, and scaled again its lineup of EV launches to simply 4, as a substitute of the six deliberate earlier than, as competitors within the South Asian nation intensifies.
Published – June 11, 2025 02:26 am IST
