Maruti Suzuki, India’s largest automobile manufacturer, has significantly revised its short-term production target for its much-anticipated electric SUV, the e-Vitara, amid a global supply chain disruption caused by rare-earth material shortages. Originally slated to produce approximately 26,500 units between April and September 2025, the company has now reduced that estimate to just 8,200 units, according to internal reports and media statements.
The key reason behind this substantial cutback is a growing scarcity of rare-earth elements, especially neodymium and dysprosium, which are critical for manufacturing permanent magnets used in electric vehicle motors. This shortage has been aggravated by China’s recent decision to tighten export restrictions on these vital resources, impacting automotive manufacturers across the globe.
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Despite this setback, Maruti Suzuki maintains its annual goal of producing around 67,000 units of the e-Vitara by March 2026. The company plans to ramp up production in the latter half of the fiscal year, from October onwards, banking on possible stabilization of raw material supply and alternative sourcing strategies.
This development underscores the fragility of global EV supply chains and the pressing need for India to diversify its rare-earth imports. The Indian government has reportedly initiated talks with China to ensure greater predictability and security in material sourcing going forward.
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