Maruti Says EV Production Unaffected By Rare Earth Supply Issue

Maruti Suzuki India Ltd. on Thursday said there has been no disruption in operations due to the reported shortage of rare earth magnets used in electric vehicle manufacturing.

“As of now there is no disruption in our operation due to this issue,” the company said in a statement. “The situation is evolving, and we are monitoring it closely while pursuing multiple solutions to ensure continuity. Any material impact, if it arises, will be disclosed in line with regulatory requirements.”

Media reports earlier this week had cited internal company documents suggesting the production target for its first electric model, the e-Vitara, had been cut to 8,221 units for April-September from the earlier plan of 26,512, citing rare earth material shortages due to China’s export curbs.

Despite this, the company is reportedly confident of meeting its full-year EV production target of 67,000 units by stepping up output in the second half.

Last week, Chairman R.C. Bhargava had said there was no "material impact" on the e-Vitara’s launch timeline and that production remained unaffected at the moment.