Maruti Suzuki's electric SUV, the e-Vitara, has hit a development speed bump before it has even reached the marketplace, where it has yet to reach production. Production plans for the first half of FY2026 have just been cut back a staggering 69% due to a shortage of rare earth materials, due to recently imposed export restrictions in August by China. The shortage will now impact the availability of the new electric vehicle when it is finally planned to launch in September 2025, which will have an impact on timeframes, including delivery wait times.
Maruti has changed its internal estimates for April to September 2025 production from 26,512 units to only 8,221 units, further aggravating the problem of early availability.
The shortfall is greatest at the base level components of the EV, mostly magnets that are used in electric motors; for these magnets, India is heavily dependent on imported Chinese magnets (but it extends to others as well).
A Squeeze on the Global Supply Chain
While exporters in the U.S., Europe, and Japan are already obtaining special export licenses for rare earths and are preparing to export dates again, Indian companies are still waiting for that and are delaying the acquisition of parts needed.
With that said, Maruti is adamant that they will release the e-Vitara on time around the festive season timeframe, with deliveries expected to start shortly after the announcement of the price.
But one thing is clear; if there is a delay in booking availability, then it may indicate there are challenges with the broader supply chain that could negatively influence their rollout plan further along in the process.
Full-Year Production Goal Still on Track
Maruti is currently banking on a significant ramp-up in H2 FY2026, from October 2025 until March 2026, the automaker plans to produce and sell 58,728 units vs the 40,437 planned before. This means producing up to 440 e-Vitaras per day and allowing Maruti to hit its annual target of 67,000 e-Vitaras.
The Competitive Pressure is Mounting
While dealing with this issue, Maruti is competing against Tata Motors and Mahindra, which are now entrenched in India's growing EV space. Maruti has lost overall market share and has a 41% share, down from 51% in March 2020.
Adding to the mounting pressure, Suzuki has reduced its India target to 25 lakh units a year by 2031, down from its last target of 30 lakh units, with its planned EV line-up cut down from six to four models.
In such a high-profile chase for EV numbers and market share, the e-Vitara's success or delay in reaching the market can have monumental consequences for Maruti's future in EVs.
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