Maruti Suzuki has cut its near-term production forecast for the e-Vitara, its first electric vehicle, by roughly two-thirds due to a shortage of rare earth materials, according to an internal document reviewed by Reuters, underscoring how China’s export restrictions continue to disrupt the global auto industry.
India’s largest carmaker, which had earlier stated it was unaffected by supply chain challenges, now expects to produce approximately 8,200 e-Vitara units between April and September, down from a previously targeted 26,500 units. The company cited “supply constraints” involving rare earth elements, critical for EV motors and other advanced components, as the reason behind the cut.
Despite the setback, Maruti said it intends to meet its full-year production goal of 67,000 e-Vitaras by ramping up output in the second half of the fiscal year. Revised plans show the automaker now aims to build 58,728 units between October 2025 and March 2026, an increase from a previously planned 40,437 for the period.
The e-Vitara, unveiled at India’s auto show in January, is pivotal to Maruti’s electric ambitions and the government’s goal of having EVs make up 30% of car sales by 2030. However, the production disruption could hinder not only Maruti’s domestic rollout but also exports planned by parent company Suzuki Motor to markets like Europe and Japan.
Maruti has not officially responded to the latest production cut, and Chairman R.C. Bhargava recently told local media there was “no impact at the moment” on production. Nonetheless, Maruti shares slipped as much as 1.4% on Tuesday following the report. The delay comes as Maruti faces increasing pressure from rivals Tata Motors and Mahindra & Mahindra, both of whom are gaining ground with feature-rich SUVs and stronger EV portfolios. Suzuki has also reduced its long-term India sales target and trimmed its EV roadmap amid growing competition.
Source: Reuters