Maruti to cut short e-Vitara manufacturing amid rare earth shortages: Reuters

Amid concerns about rare earth shortages caused by China’s export restrictions, Maruti Suzuki has decided to reduce its production of the e-Vitara by two-thirds, the company said on Monday.

According to the company, they have not yet seen an impact on the supply chain; however, in an anticipatory move, the company has decided to manufacture only 8,200 e-Vitaras between April and September, instead of the original target of 26,500, Reuters reported. 

As per Reuters, the company has "supply constraints" in rare earth materials, which are important to make magnets and other parts

According to the reports, 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 are struggling with serious supply chain disruptions as a result of China's restrictions on some rare earth materials, which have shocked the global auto sector. As they obtain licenses from Beijing, several businesses in the US, Europe, and Japan are noticing a reduction in supply, but India is still awaiting Chinese clearance certifying that the rare earth materials exported will not be used in military applications. 

Maruti's EV effort in India is visualised via e-Vitara, which was introduced at the January auto show in India. It is the company's first foray into a market that Prime Minister Narendra Modi's administration hopes will increase from roughly 2.5% of all car sales last year to 30% by 2030.