NEW DELHI: 11th May 2025: The shortage of rare earths brought on by China’s export restrictions has caused Maruti Suzuki to cut its production estimate for the e-Vitara EV by almost two-thirds for the first half of FY26. The loss occurs as domestic competitors Mahindra & Mahindra and Tata Motors, who are dealing with comparable difficulties, can hold onto their lead and strengthen their hold on the nation’s rapidly expanding electric vehicle market.
An internal company document obtained by Reuters states that because of Chinese restrictions on the import of vital parts like permanent magnets, which are necessary for EV motors, Maruti has drastically reduced its initial projection of 26,512 units of its first electric SUV to 8,221 units between April and September 2025.
Maruti, the biggest car manufacturer in India, was relying on its electric aspirations to increase its market share, so delays in the e-Vitara’s launch could cost it valuable ground.
Compared to 51% in March 2020, its market share in the nation’s passenger vehicle segment has already decreased, from 39.53% in May 2024 to 38.68% in May 2025.
The model is essential to Suzuki Motor Corporation’s global electric strategy, with significant volumes set for export to Europe and Japan starting in mid-2025. However, Maruti, which analysts estimate will only be able to produce up to 440 e-Vitara vehicles per day, will have difficulties becoming a market leader in electric vehicles both domestically and internationally.
Analysts are worried that the company’s delay in accepting customer reservations could increase the competitive gap, despite the company’s insistence that the rare earth shortage hasn’t yet impacted the vehicle’s launch schedule.
Suzuki, the parent company, has lowered its long-term projections for the Indian market, which has increased the pressure. The company’s initial estimate of 3 million vehicles sold annually by March 2031 has been lowered to 2.5 million. Additionally, it has reduced the number of EV models in its planned lineup from six to four.
Once hailed as a possible market reset, Maruti’s electric journey now faces a much steeper climb, caught between domestic competition growing and global supply disruptions.
