Amid Rare Earth Crisis, Maruti Suzuki Revises EV Plans The auto major is aiming to produce around 8,000 units of the model by September, as against the previous plan of rolling out over 26,000 units during the same period
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Maruti Suzuki India has cut near-term production targets for its upcoming electric vehicle e-Vitara because of rare earths shortages, according to Reuters.
The auto major is aiming to produce around 8,000 units of the model by September, as opposed to the earlier plan of rolling out over 26,000 units during the same period. The company however plans to make up for the production slump with a target to produce around 67,000 units of the model by FY26. The e-Vitara is crucial to Maruti's EV plans in the country marking its entry in the segment.
Earlier this week, Maruti Suzuki India Chairman R C Bhargava said there will be no impact on the company's production due to the shortage of rare earth magnets as of now. Domestic carmakers are forced to take steps as the Chinese government has put restrictions since April 4 on the export of rare earth elements and related magnets. China controls over 90 percent of global processing capacity for the magnets, used across sectors.
China's export curbs on some rare earth have shocked the global auto industry, as companies struggle to maintain supply chains. While some companies in the United States, Europe and Japan are seeing ease of supplies after securing licences from Beijing, India is still waiting for China's approval amid fears of shutting down production. The domestic automobile industry has sought government support in seeking approvals from the Chinese government for importing rare earth magnets used in various applications, including passenger cars.
