Maruti Suzuki's e-Vitara Faces Production Cut Amid Rare Earth Crisis
Maruti Suzuki has slashed its production targets for the e-Vitara by two-thirds due to rare earth material shortages following China's export curbs. While production ramp-up is planned for later, the issue highlights supply chain vulnerabilities as India seeks to boost its EV market share.
In a significant development, Maruti Suzuki has dramatically reduced near-term production targets for its first electric vehicle, the e-Vitara, amid a rare earth material shortage. This move comes in response to China's recent export limitations, which have caused considerable disruption within the global automotive industry.
Originally intending to manufacture 26,500 e-Vitaras from April to September, Maruti now plans to produce only 8,200, as per a company document seen by Reuters. Despite these cuts, the company aims to achieve its annual production goal of 67,000 electric vehicles by March 2026 by increasing output in the following months.
This manufacturing setback could impact Maruti's parent company, Suzuki Motor, given India's crucial role in its EV strategy. Meanwhile, Maruti's market share in India has declined, and new competitors such as Tesla are emerging as formidable challenges. The rare earth shortage highlights ongoing supply chain risks in the quest to expand India's electric vehicle sector.
(With inputs from agencies.)
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