Maruti Suzuki Slashes e-Vitara EV Production by Two-Thirds Amid Rare Earth Shortage
Maruti Suzuki, India’s largest car manufacturer, has drastically scaled down its short-term production targets for its first electric vehicle, the e-Vitara, by nearly two-thirds, according to a report by Reuters. The company initially planned to produce around 26,500 units of the e-Vitara between April and September 2025, but has now revised that figure to just 8,200 units. Supply Chain Crisis Tied to Rare Earth Shortage The sharp cutback is attributed to a shortage of rare earth materials, as detailed in an internal company document accessed by Reuters. These materials are essential for the production of electric motors, especially for magnets and high-tech components used in EVs. The shortage has been further aggravated by China’s export restrictions, causing widespread disruption in the global automotive supply chain. Long-Term Target Remains Unchanged Despite the immediate setback, Maruti Suzuki has reaffirmed its annual production target of 67,000 electric vehicles for the fiscal year ending March 2026. The company plans to make up for the shortfall in the second half of the fiscal year, with revised production goals set at 58,728 units from October to March, up from the previously planned 40,437 units during that period. Strategic Importance of the e-Vitara The e-Vitara, first revealed at India’s premier auto show in January 2025, is a key component of Maruti Suzuki’s electric mobility strategy in India. It also aligns with the Indian government’s vision under Prime Minister Narendra Modi, which aims to increase EV penetration to 30% of total car sales by 2030, compared to just 2.5% last year. Global Implications This reduction in output may also impact Suzuki Motor Corporation, Maruti’s parent company, given that India is its largest market by revenue and serves as a central EV production hub. A significant number of e-Vitara units manufactured in India are slated for export to Europe and Japan, especially starting summer 2025. While the short-term outlook has been tempered by supply limitations, Maruti Suzuki appears committed to ramping up EV production in the months ahead to meet its strategic and global objectives.
