Maruti Suzuki Tackles Rare Earth Magnet Shortage Amid Global Supply Challenges

Maruti Suzuki India is taking steps to address the ongoing rare earth magnet shortage, with no immediate impact on production according to company officials. The shortage stems from China's newly imposed export restrictions, which have created bottlenecks in the supply chain affecting the automotive and electronics sectors.

China dominates the rare earth magnet market, controlling the majority of the global processing capacity. These magnets are vital for numerous industries, including automobiles, household appliances, and renewable energy. China requires special export licenses for certain rare earth elements as of April 4, exacerbating supply issues.

Maruti Suzuki hopes the situation will improve, especially during the festive season, with potential boosts from monsoon and rural sales. Meanwhile, discussions with the government on the upcoming Corporate Average Fuel Efficiency (CAFE)-3 norms continue positively, promising clarity for future powertrains by early 2027.

(With inputs from agencies.)