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Maruti Suzuki cuts near-term e-Vitara production by two-thirds due to rare earth shortages.
Maruti Suzuki, the top car maker in India, has declared a reduction of near-term production goals for its first electric car, the e-Vitara, because of rare earth material shortages. The e-Vitara output is now scheduled at some 8,200 units between April and September versus an initial goal of 26,500 units. This represents a two-thirds reduction in production as supply chain disruptions continue due to China's export controls on rare earth elements, which are essential in the production of components such as magnets for EVs and other high-tech applications
Despite the delay, Maruti Suzuki is confident of achieving its yearly target of manufacturing 67,000 EVs by March 2026 by ramping up production in the second half of the fiscal. The company will produce 58,728 e-Vitaras from October 2025 to March 2026, which is more than the initial plan for the quarter.
China's restrictions on exports of rare earth minerals have led to major disruptions in the world automotive market. Though US, European, and Japanese companies have started alleviating supply constraints by obtaining licenses from Beijing, Indian manufacturers such as Maruti Suzuki are yet to get clearances, and this has sent tremors of possible production stops.
Maruti Suzuki's e-Vitara is crucial for the company's EV market expansion, with the Indian government aiming for 30% of total car sales by 2030. Suzuki's passenger vehicle segment share dropped from 51% in 2020 to 41% due to competition from Tata Motors and Mahindra & Mahindra.
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