Maruti Suzuki cuts e-Vitara production by two-thirds amid rare earth material shortage

Maruti Suzuki recently reduced its near-term production target for its first electric vehicle, the e-Vitara, by two-thirds due to a shortage of rare earth materials. A company document reviewed by Reuters shows that the automaker now plans to produce 8,221 units between April and September, compared to the original target of 26,512.

The production cut comes amid global disruptions caused by China’s export curbs on rare earths, which are essential for manufacturing magnets and other components used in electric vehicles. While automakers in the US, Europe, and Japan have begun securing export licences from Beijing, India is still awaiting approvals, raising concerns over potential delays.

Despite the cut, Maruti aims to meet its annual production goal of 67,000 e-Vitaras by increasing output later in the financial year. From October 2025 to March 2026, it now plans to produce 58,728 units—up from the earlier estimate of 40,437 for that period.
The e-Vitara, which was unveiled at the Bharat Mobility expo in January, marks Maruti’s entry into the EV segment. It is a central part of the company’s electric strategy in India, where the government aims to raise EV sales to 30% of total car sales by 2030, from about 2.5% in 2024.

Most e-Vitara units are planned for export to markets like Europe and Japan beginning mid-2025. However, the delay in ramping up production may affect Maruti Suzuki and its parent company, Suzuki Motor, which counts India as its largest revenue market and a global hub for EV production.

Alongside the launch, Maruti has announced a ₹7,000 crore investment for EV production, research and development, and a new manufacturing facility in Haryana. Bookings for the e-Vitara have not yet opened, and some analysts believe the company may already be falling behind competitors like Tata Motors and Mahindra & Mahindra, who lead India’s EV sales.

Chairman R.C. Bhargava said last week that the rare earths issue had no material impact on the launch timeline, and the company stated there is “no impact at the moment” on production. However, the internal document and supply chain sources suggest otherwise.

Following the news, Maruti’s stock fell by up to 1.4% on the Indian stock exchange on Tuesday. Meanwhile, Suzuki has revised its India sales target for 2031 to 2.5 million vehicles, down from 3 million, and reduced its planned EV lineup from six to four models, citing increasing market competition.

(With input from agencies)