Operations running smoothly despite rare earth worries, says Maruti’s Rahul Bharti

Maruti Suzuki’s production hasn’t been affected by the rare earth magnet shortage. That’s the reassurance from Rahul Bharti, Senior Executive Officer – Corporate Affairs. Speaking to CNBC-TV18, he said that despite concerns over China’s export restrictions, the company’s operations are running smoothly for now.

“As of now, there is no disruption in our operation due to this issue,” he said, adding that the company is closely monitoring the evolving situation and working on multiple solutions to ensure continuity.

On the eVitara, the company’s upcoming global electric sports utility vehicle (SUV), Bharti confirmed that there has been no impact on production or schedules. The launch will proceed as planned, with India and over 100 global markets, including Europe and Japan, to be served in a phased manner. “The launch timings don’t change,” he assured.

Bharti stated that Maruti has secured enough rare earth material to manage production until at least July. “Till July, we don’t see a problem,” he said. While acknowledging the uncertainty beyond that, he emphasised that it’s being treated as part of normal business risks.

To mitigate future risks, the company is actively exploring various backup options. These include sourcing from alternative geographies, domestic exploration, and importing assemblies from China if necessary. Bharti confirmed, “All kinds of solutions are being evaluated,” and added that the industry is in regular touch with the government.

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While other global automakers have made changes to their internal combustion engine (ICE) production plans, Bharti said Maruti has not yet shifted anything, but all options remain open. “There is nothing at the moment that is in the public domain,” he said.

On the safety front, Maruti is marking a milestone. Its Dzire sedan has received a 5-star Bharat New Car Assessment Programme (NCAP) safety rating, and the Baleno a 4-star — the first-time non-SUVs in India have achieved such certification. “These are very high ratings. They go beyond compliance for customer safety,” Bharti said.

Also Read: Rare earth edge gives China stronger hand in US trade tension: Lyn Alden

The company has invested between ₹100–200 crore in safety upgrades, which Bharti called “money well spent” for the protection of customers and their families.

Importantly, Maruti is on track to make six airbags standard across its entire passenger vehicle lineup by the end of 2024-25 (FY25). “By July, 97% of our sales by volume will be with six airbag fitments,” Bharti shared, calling it a significant step towards safer mobility for Indian customers.

The market capitalisation of Maruti Suzuki India is around ₹3,90,473.85 crore. Its shares have declined close to 4% in the past year.

Also Read: India must invest in R&D and innovation to tackle rare earth crisis, say experts

Watch the interview in the accompanying video

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