India’s leading automaker has reduced its near-term EV output target due to rare earth shortages, with plans to ramp up production later in the fiscal year to meet annual goals, Reuters reports.
10 Jun 2025 | 3747 Views | By Autocar Professional Bureau
Maruti Suzuki has significantly reduced its production forecast for its debut electric vehicle, the e-Vitara, for the first half of the 2025-26 fiscal year, citing disruptions in the supply of rare earth materials. According to a company document reviewed by Reuters, the automaker plans to produce 8,221 units between April ...
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Maruti Suzuki has significantly reduced its production forecast for its debut electric vehicle, the e-Vitara, for the first half of the 2025-26 fiscal year, citing disruptions in the supply of rare earth materials. According to a company document reviewed by Reuters, the automaker plans to produce 8,221 units between April and September 2025—nearly a two-thirds reduction from the original target of 26,512 units.
The shortage is attributed to China's recent restrictions on rare earth exports, which has affected the availability of key components like magnets essential for electric vehicle production. The impact is being felt globally across the automotive sector. While carmakers in the U.S., Europe, and Japan have started securing export licences from China, Indian automakers are still waiting for similar approvals, causing delays in manufacturing.
Despite the setback, Maruti Suzuki aims to meet its full-year production goal of 67,000 e-Vitara units by ramping up output in the second half of the fiscal year. Between October 2025 and March 2026, the company plans to manufacture 58,728 units, compared to an earlier target of 40,437, potentially producing up to 440 vehicles per day at its peak.
The e-Vitara, first showcased at India’s Auto Expo in January 2025, represents a key milestone in Maruti Suzuki’s electric mobility strategy. The model is crucial not just for the Indian market, but also for Suzuki Motor Corporation’s global EV plans, with many units earmarked for export to regions including Europe and Japan by mid-2025.
While Maruti stated last week that the rare earth issue has not yet impacted the e-Vitara’s launch timeline, analysts have raised concerns over the delay in opening bookings. Meanwhile, Maruti continues to face stiff competition from domestic rivals Tata Motors and Mahindra & Mahindra, which lead in India’s growing EV segment. The company’s overall passenger vehicle market share has declined to 41%, down from a peak of about 51% in March 2020.
Adding to the competitive pressure, parent company Suzuki has revised its long-term sales target for India. It now aims to sell 2.5 million vehicles annually by March 2031, a reduction from its previous projection of 3 million. Additionally, the planned EV lineup has been trimmed from six models to four.
Both Maruti Suzuki and Suzuki Motor Corporation declined to comment when contacted on Tuesday.