Maruti Suzuki withdraws on EV-pressure amid rare earth crisis: How will it affect the production of e-vitara? | Today news

Maruti Suzuki decided to reduce the production of its first electric vehicle (EV), e-vitara, by two-thirds due to rare nature of the earth, Reuters reports, citing a document. This development is the latest sign of disruption of the automotive industry from China’s control over some rare earthly exports, which has led to tensions in the global auto industry. While some companies in the United States, Europe and Japan see that the supplies are relieving as they obtain Beijing licenses, India is still awaiting China’s approval amid the fear of production stop, Reuters said. Rare Earths crisis affects EV Production India’s top car manufacturer on Monday said it had no impact on the supply crisis yet, but plans to make about 8,200 e-vitaras between April and September, compared to an original 26,500 goal, according to a company’s document seen and reported. Reuters reported that he quoted the document that ‘supply restrictions’ in rare earth material is essential to make magnets and other components in a variety of Hi-Tech industries. Maruti is still planning to achieve its production target of 67,000 EVs for the year ended March 2026 by increasing production in the following months. Between October and March 2026, Maruti was planned to produce 58,728 e -vitaras, or about 440 per day, compared to a previous target of 40.437 for the six months below the initial plan, Reuters said. The car manufacturer has a setback in achieving its EV dream that the e-vitara launched in January amid many fanfare on a car expo. The vehicle was considered decisive for Maruti’s EV pressure in the country, which indicates its entry into a fast-growing segment that the government of India wants to grow to 30 percent of all car sales from about 2.5% last year, according to Reuters’ data. Reuters reported that the setback could also harm the older Suzuki car, for which India is the largest market for generating turnover and a global product center for EVs. Most of the e-Vitaras-in-India-e-Vitaras are exported to Suzuki’s most important markets such as Europe and Japan in the summer of 2025. Maruti’s response to rare earth’s deficit Maruti told Reuters last week that the rare earthline had no “substantial impact” on the e-vitara’s launch. Chairman RC Bhargava said that there is “no impact” on the production right now. Maruti still has to open discussions for the e-vitara, with some analysts warning that it’s already late to launch EVs in the country, as Tesla is also expected to start sales this year, Reuters reports. Under his initial plan, Maruti planned to produce e-vitaras between April and September, which is the first half of the financial year 2025-26. Under the revised plan, the company will manufacture 8.221 vehicles, which are about two-thirds in the production schedule. Maruti Suzuki hits roadblocks The rare Earths crisis comes at a time when Maruti is already struggling to restore the market share that has been lost to Tata Motors and Mahindra & Mahindra’s functional SUVs. These businesses also lead India’s EV sales. Maruti’s share of India’s passenger vehicle market is up to 41 percent of a recent high of about 51 percent in March 2020. Suzuki allegedly reduced its sales target for India to 2.5 million vehicles from 3 million previously, and its range of EV launches to just four, instead of the six previously submitted.