Maruti Slashes e-Vitara EV Production Amid China’s Rare Earth Export Curbs

Maruti Suzuki has significantly reduced production targets for its first electric vehicle, the e-Vitara, due to a shortage of rare earth materials caused by China’s export restrictions. According to internal documents seen by Reuters, India’s largest automaker plans to manufacture just 8,221 units between April and September 2025, a steep cut from the original target of 26,512—a two-thirds reduction.

Rare earth elements are critical for making magnets used in electric vehicles. While companies in the U.S., Europe, and Japan have begun securing export licenses from China, India is still awaiting approval, raising fears of extended production delays.

Despite the near-term setback, Maruti remains committed to its annual EV goal of 67,000 units by March 2026. The company plans to ramp up output in the second half of the fiscal year to 58,728 vehicles—about 440 units per day at peak—surpassing the earlier plan of 40,437 units.

The e-Vitara, first unveiled at India’s auto show in January, is central to Maruti's EV strategy and aligns with India’s ambition to have 30% of new car sales be electric by 2030. The SUV is also a key export product for parent company Suzuki, targeting markets like Europe and Japan by summer 2025.

Despite company statements denying any “material impact,” Maruti’s stock dropped up to 1.4% following the production news. Analysts warn the delay may hinder Maruti’s EV debut in the world’s third-largest auto market, especially as Tesla prepares to launch sales in India this year.

Maruti, which has lost market share to Tata Motors and Mahindra’s advanced EVs, has also cut its 2031 India sales target to 2.5 million vehicles and trimmed its planned EV lineup from six models to four.