Maruti Suzuki's e-Vitara Faces Setback Amid Rare Earths Shortages

Maruti Suzuki has sharply adjusted its production goals for the e-Vitara, slashing plans by two-thirds due to shortages in rare earth materials, a development influenced by China's export restrictions, according to a company document.

The change in strategy means that between April and September, production will drop from an anticipated 26,500 units to just 8,200. Nevertheless, Maruti aims to compensate for this shortfall by ramping up production in the latter half of the fiscal year, ensuring they meet their annual target of 67,000 EVs by March 2026.

This setback underscores the broader impact of geopolitical dynamics on the automotive industry, particularly for Suzuki, whose plans for India as a major market and production hub are now complicated. The e-Vitara also represents Maruti's major entry into a market segment that the Indian government aims to expand significantly by 2030.

(With inputs from agencies.)