Maruti Suzuki Slashes e-Vitara Production Amid Rare Earth Shortages

Maruti Suzuki has significantly reduced its immediate production targets for the e-Vitara, its inaugural electric vehicle, due to a shortage of rare earth materials, according to a recent company document. The scarcity reflects China's stringent export restrictions, disrupting the global automotive industry. India's premier car manufacturer, Maruti Suzuki, formerly aimed to produce 26,500 e-Vitaras between April and September but has slashed this target to approximately 8,200 vehicles.

The company outlined 'supply constraints' in obtaining rare earth components indispensable for magnet production, critical to numerous high-tech industries. Nevertheless, Maruti Suzuki remains committed to its annual objective of manufacturing 67,000 electric vehicles (EVs) by March 2026, intending to augment output in the latter part of the fiscal year.

China's recent export barriers on rare earth elements have unsettled automotive sectors globally, with firms reporting potential supply chain interruptions. While some Western and Asian companies report improved access via Beijing's licensing, India's approval is still pending. The e-Vitara, a central component of Maruti's electric strategy, was launched to considerable acclaim earlier this year. Amid growing competition from domestic rivals, production delays could hamper Suzuki Motor's market ambitions, as Maruti awaits to penetrate the burgeoning EV segment in India.

(With inputs from agencies.)