Ongoing Rare Earths Shortages Force Maruti Suzuki to Cut EV Production

Maruti Suzuki, the Indian subsidiary of Japanese carmaker Suzuki Motor, has cut electric vehicle production due to the ongoing rare earth mineral shortage. Documents show that the New Delhi, India-based automaker has reduced e-Vitara production targets for the first half of the 2025–2026 financial year by a whopping two-thirds thanks to the shortage. The news shows that China’s decision to halt the export of seven rare earth metals in April is already affecting the global automobile sector.

In early April, China stopped exporting over half a dozen rare earth metals that are key ingredients in electric vehicle production, a move that has triggered shortages across several key industries. Although Maruti Suzuki initially claimed that it hadn’t been affected by the shortage, a document has revealed that the firm will now produce 8,200 units of its debut electric car from April to September, down from 26,500 units. According to the document, supply constraints were largely responsible for the company’s decision to cut its electric vehicle production targets.

Even so, the document says Maruti Suzuki will step up production after September to meet its target of producing 67,000 electric cars by March 2026. Maruti launched the e-Vitara during Bharat Mobility Global Expo 2025 in January as part of its plan to launch electric cars in the Indian market. With Prime Minister Narendra Modi’s administration looking to reach 30% electric vehicle sales by the end of the decade, up from 2.5% in 2024, the market has a lot of room for growth.

However, the global rare earth mineral shortage forced Maruti to scale back its production plans in the near term. The auto sector is currently reeling from the shortage, and several firms have warned of COVID-level supply chain disruptions. China introduced a licensing requirement for rare earth metal exports that has significantly slowed down shipments of critical metals and disrupted global supply chains. With India yet to receive Chinese approval for rare earth mineral exports, there are growing fears of massive supply chain and production disruptions.

Suzuki Motor, Maruti’s parent company, may take a financial hit from the Indian subsidiary’s decision to cut EV production. India generates the highest revenue compared to Suzuki’s other markets and the country currently serves as Suzuki Motor’s electric vehicle production hub. As such, most of the e-Vitaras made in India that were meant for export to markets like Japan and Europe this summer won’t be produced.

However, Maruti will ramp up electric vehicle production in the second half of the financial year to produce 58,728 units of the e-Vitaras at about 440 units per day compared to its previous production plan of 40,437 e-Vitaras.

Maruti is also facing rising pressure from rival Tata Motors, which has steadily gained market share in the electric vehicle segment. Maruti’s share of the Indian passenger vehicle market has dropped to 41% from 51% in March 2020. If China doesn’t grant India the permission it needs to resume rare earth mineral imports, domestic automakers like Maruti could face serious supply chain disruptions and find themselves struggling to meet rising demand for electric vehicles.

The rare earths shortages are also likely to prompt manufacturers elsewhere like Massimo Group (NASDAQ: MAMO) to search for alternative supply sources so that their operations can remain on track.

About GreenCarStocks

GreenCarStocks (“GCS”) is a specialized communications platform with a focus on electric vehicles (“EVs”) and the green energy sector. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, GCS is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, GCS brings its clients unparalleled recognition and brand awareness. GCS is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from GreenCarStocks, text “Green” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.GreenCarStocks.com

Please see full terms of use and disclaimers on the GreenCarStocks website applicable to all content provided by GCS, wherever published or re-published: https://www.GreenCarStocks.com/Disclaimer

GreenCarStocks
Los Angeles, CA
www.GreenCarStocks.com
310.299.1717 Office
Editor@GreenCarStocks.com

GreenCarStocks is powered by IBN