Maruti Suzuki E-Vitara: Slashes Production due to Rare Metal Crisis!

• Maruti Suzuki now intends to manufacture only 8,200 units of e-Vitara. A drastic decline from the initial target of more than 26,500 units, a decline of almost 67%.
• The manufacturer intends to make up lost time by increasing production during the latter half of the financial year. Eying a total of 67,000 units by March 2026.
• This change requires Maruti Suzuki to manufacture almost 59,000 e-Vitaras. Roughly equal to 440 vehicles a day during October 2025 to March 2026. 

Root Cause: China’s Rare Earth Export Curbs

The production cut comes as a direct consequence. China’s fresh export controls on rare earths in April 2025. China, which processes more than 90% of the global rare earth magnets. Now needs special permits for the export of critical materials. Such as samarium, gadolinium, terbium, dysprosium, and lutetium. These are all crucial for permanent magnet synchronous motors (PMSMs) of EVs. Whereas American, European, and Japanese automakers have begun obtaining export permits. Their Indian counterparts are still pending approvals. Clogging up the pipeline for domestic players such as Maruti Suzuki. The holdup has prompted the Indian carmakers to urge the government to step in and speed up the process. But no permits have been issued so far.

Broader Impact and Government Response

The e-Vitara, unveiled at the Bharat Mobility Expo in January 2025. It is central to Maruti Suzuki’s electric strategy. Most units are slated for export to Europe and Japan, making India a global hub for Suzuki’s EV ambitions. The Indian government’s target is for EVs to comprise 30% of all car sales by 2030. Multiple manufacturers have urged immediate government intervention. To acquire rare earth imports and avoid further dislocation in the EV and hybrid car pipeline. The crisis highlights the imperative for India to diversify sources of supply and develop domestic rare earth processing capacity.

What’s Next for Suzuki E-Vitara and India’s EV Sector?

• Maruti Suzuki’s ability to meet its ambitious annual target now hinges on timely resolution. Of the rare earth supply crunch.
• Any prolonged delay in securing export licenses from China could force further production cuts. Even temporary halts, impacting both domestic sales and exports.
• The episode serves as a wake-up call for India’s EV sector. Highlighting the risks of overdependence on a single country for critical raw materials.