In the most recent indication of the auto industry's disruption from China's export restrictions, Maruti Suzuki has slashed its near-term production plans for its first electric vehicle, the e-Vitara, by two-thirds due to rare earth shortages.

According to reports, India's leading automaker, which stated that it has not yet felt the effects of the supply issue, now intends to produce roughly 8,200 e-Vitaras between April and September instead of the 26,500 it had originally planned to produce.

It brought up the issue of "supply constraints" in rare earth minerals, which are essential for the production of magnets and other parts for various high-tech businesses.

By increasing production in the months that follow, Maruti still intends to reach its output goal of 67,000 EVs for the year ending March 2026.

Companies have warned of serious supply chain disruptions as a result of China's restrictions on some rare earth shipments, which have shocked the global auto sector. As they obtain licenses from Beijing, certain businesses in the US, Europe, and Japan are noticing a reduction in supply, but India is still awaiting Chinese clearance due to concerns about production halts.

The e-Vitara was introduced with great hoopla at the January Indian auto show and is a key component of Maruti's EV campaign in the nation. It enters a market that Prime Minister Narendra Modi's administration hopes to expand from roughly 2.5 percent of all car sales last year to 30 percent by 2030.

The failure may also harm parent company Suzuki Motor, whose largest market in terms of revenue is India, a global center for EV manufacture. Around summer 2025, Suzuki plans to ship the majority of the made-in-India e-Vitaras to its main markets, including Europe and Japan.

Although some analysts caution that it is already too late to introduce EVs in the third-largest automobile market in the world, where Tesla is also anticipated to start sales this year, Maruti has not yet opened reservations for the e-Vitara.

 

Maruti's prior plan "A" called for the company to produce 26,512 e-Vitaras in the first half of the fiscal year, from April to September. The paper indicated a two-thirds reduction in its production schedule (it will manufacture 8,221 under the revised plan "B").

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In contrast to the initial goal of 40,437 e-Vitaras for those six months under plan A, Maruti intends to increase production to 58,728 e-Vitaras for the second half of the fiscal year, which runs from October to March 2026. At its peak, this would be approximately 440 units per day.