Maruti Suzuki shares under watch today as rare earth crunch hits EV output target
Maruti Suzuki
's stock may come under pressure as the company has sharply reduced its near-term electric vehicle (EV) production plans for FY26, citing rare earth supply constraints, Financial Express reports. The revision comes ahead of the much-anticipated debut of the e-Vitara, the automaker's first electric SUV offering.
A cut down of e-Vitara production
On Tuesday, Reuters had reported that Maruti Suzuki has slashed its production target for the e-Vitara by nearly two-thirds. The company now plans to manufacture just 8,200 units between April and September 2025, down from an earlier target of 26,500 units. The slowdown is attributed to shortages of
rare earth materials
—crucial components used in EV motors and high-tech manufacturing.
The company, however, said it remains committed to its full-year target of producing 67,000 EVs by March 2026, with plans to ramp up output in the latter half of the fiscal year.
Market Reaction
Maruti Suzuki's share price has gained 2.4 per cent over the past five trading sessions but has fallen more than 1 per cent over the last month. Despite a 11 per cent return over six months, the stock has remained volatile, shedding 3 per cent in the past year.
Analysts will be closely watching for further clarity on rare earth availability and Maruti's ability to scale up
EV output
in the latter half of FY26. The developments may have broader implications for India's emerging EV ecosystem and its export competitiveness.
Global supply chain challenges
continue to weigh on the auto industry. CRISIL Ratings in its latest report warned in a note that a disruption lasting beyond a month could delay EV launches, disrupt production schedules, and dampen the sector's overall momentum.
The impact of Maruti Suzuki's production cut is expected to ripple through its parent company,
Suzuki Motor Corporation
. India is Suzuki's largest market by revenue and serves as a key global production hub for EVs, with most e-Vitaras destined for export markets in Europe and Japan.
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