Maruti Suzuki Slashes e-Vitara EV Output By Two-Thirds Amid Rare Earth Crunch: Report

This production cut comes as global automakers grapple with the fallout from China's restrictions on rare earth exports, crucial for manufacturing EV components such as magnets

Despite the setback, Maruti remains committed to its full-year target of producing 67,000 e-Vitaras by March 2026

Source : Somnath Chatterjee

Maruti Suzuki has decided to significantly reduce near-term production of its debut electric vehicle, the e-Vitara, due to ongoing shortages in rare earth materials. The carmaker now plans to manufacture just 8,221 units between April and September, down from its earlier target of 26,512, according to internal documents cited by Reuters.

This production cut comes as global automakers grapple with the fallout from China's restrictions on rare earth exports, crucial for manufacturing EV components such as magnets. While firms in the US, Europe, and Japan have started receiving licences from Beijing to continue sourcing materials, India is still awaiting approvals, raising concerns of potential production delays, the report added.

No Immediate Impact, Says Maruti

Despite the adjustment in production targets, Maruti Suzuki maintains that there has been no "material impact" on the timeline for launching the e-Vitara. “There is no impact at the moment,” said Chairman RC Bhargava, addressing the current supply situation. The company has not yet opened bookings for the vehicle.

The e-Vitara, unveiled with considerable fanfare at an auto show earlier this year, marks Maruti’s first step into India’s electric vehicle market, a segment the government aims to expand from 2.5 per cent of total car sales in 2023 to 30 per cent by 2030.

Production Ramp-Up Expected Later

Despite the setback, Maruti remains committed to its full-year target of producing 67,000 e-Vitaras by March 2026. To meet this goal, the company plans a significant production ramp-up in the second half of the fiscal year. From October 2025 to March 2026, it aims to produce nearly 59,000 units, well above its initial plan of around 40,000 vehicles for the same period.

Competitive Pressures Mount

The rare earth shortage is another blow for Maruti as it battles to regain lost ground in India’s competitive passenger vehicle segment. The company’s market share has fallen from a peak of 51 per cent in March 2020 to 41 per cent, with rivals like Tata Motors and Mahindra & Mahindra dominating both the SUV and EV markets.

Adding to the pressure, Tesla is expected to begin its India sales this year, intensifying the competition. In response, Maruti’s parent company, Suzuki Motor, has revised its long-term outlook, reducing its India sales target for 2031 to 2.5 million units from the previous 3 million and scaling down its planned EV launches from six to four.