Latest news with #R.C.Bhargava
Time of India
2 days ago
- Automotive
- Time of India
Rare earth shortage forces Maruti Suzuki to slash e-Vitara production targets by two-thirds
Maruti Suzuki, India's largest carmaker, has sharply cut its near-term production targets for its first electric vehicle, the e-Vitara, amid a global rare earth supply crunch triggered by China's export restrictions, a company document seen by Reuters has revealed. The automaker now plans to produce just 8,221 e-Vitaras between April and September 2025, down from its initial target of 26,512 units—a reduction of nearly two-thirds. The document cites "supply constraints" in rare earth materials, which are crucial for EV components like magnets used in electric motors. China's Curbs Ripple Across Auto Industry China's tightening of rare earth exports—vital for high-tech industries—has rattled automakers globally. While firms in the US, Europe, and Japan are beginning to secure export licenses from Beijing, Indian manufacturers are still awaiting approvals, raising concerns of further production delays. The setback comes despite Maruti's public stance that production has not yet been impacted. Company chairman R.C. Bhargava recently told local media there was 'no impact at the moment' on manufacturing timelines. Maruti also said last week that the rare earths issue had no 'material impact' on the e-Vitara's launch. EV push faces roadblocks amid rising competition Launched with much fanfare at India's Auto Expo in January 2025, the e-Vitara is a flagship product in Maruti's long-awaited electric mobility push. It is expected to play a pivotal role as India targets 30 per cent EV penetration by 2030—up from just 2.5 per cent last year. However, production delays and a lack of booking announcements have raised eyebrows. Analysts warn that Maruti is already behind the curve, especially as rivals Tata Motors and Mahindra & Mahindra gain ground with feature-rich EVs. US electric vehicle giant Tesla is also gearing up to enter the Indian market this year. Maruti's share in India's passenger vehicle market has slipped to 41 per cent, down from 51 per cent in March 2020, as it struggles to regain ground in the booming SUV and EV segments. Revised Roadmap: Catch-Up in H2 FY26 While cutting near-term production, Maruti aims to ramp up output in the second half of FY26 to 58,728 units, compared to a previous target of 40,437. This would mean producing around 440 e-Vitaras per day at peak capacity. The company still intends to meet its full-year EV production target of 67,000 units by March 2026. Two supply chain sources confirmed that rare earth magnet shortages had forced Maruti to alter production plans, though they were not aware of the exact figures. Global stakes for Suzuki The e-Vitara is also a critical product for parent company Suzuki Motor Corp., which relies on India as its largest revenue market and a key manufacturing hub. A significant share of the e-Vitara output is earmarked for exports to Europe and Japan beginning mid-2025. As competition heats up in India, Suzuki has revised its broader strategy—trimming its India sales target from 3 million to 2.5 million vehicles by FY31, and scaling down its EV rollout from six to four models, reflecting the challenges ahead in an increasingly competitive EV landscape.
Mint
02-05-2025
- Automotive
- Mint
Maruti Suzuki share price rallies 4% to 9-week high after April sales rise 7%
Maruti Suzuki share price in focus today: Shares of Maruti Suzuki India, the country's largest automaker, surged 4% in intraday trade on Friday, May 2, touching a 9-week high of ₹ 12,727 apiece, as investors reacted positively to the company's April sales numbers released on Thursday. The company reported a 7% increase in total sales to 179,791 units in April, compared to 168,089 units during the same month last year. In contrast, sales of compact cars such as the Baleno, Celerio, Dzire, Ignis, Swift, and WagonR rose to 61,591 units from 56,953 units. Sales of utility vehicles, including the Brezza, Ertiga, Grand Vitara, and XL6, also increased to 59,022 units from 56,553 units. The Eeco van recorded sales of 11,438 units in April, compared to 12,060 units a year earlier, while light commercial vehicle Super Carry sales rose to 3,349 units from 2,496 units. The company also reported that its exports stood at 27,911 units in April, up from 22,160 units in the same month last year. Additionally, Maruti Suzuki released its production figures for the month. Total production in April rose to 179,956 units from 169,751 units a year earlier. Within the passenger vehicle segment, production of mini cars like the Alto and S-Presso fell nearly 29% to 9,714 units from 13,702 units. On the other hand, utility vehicle production — including models like the Brezza, Ertiga, and Fronx — rose by 19% to 72,640 units, reflecting strong demand. However, the company is witnessing a significant decline in demand for entry-level cars. Maruti Suzuki Chairman R.C. Bhargava noted that affordability is a major concern for small car buyers. 'Unless something changes, the domestic market will remain muted. In this current year, sales of small cars have declined by about 9%. If there is such a decline in the sales of cars that can be afforded by 88% of people earning, how can we expect growth?' he said. 'To boost demand, small cars have to become more affordable,' Bhargava added. 'It is not the case that India has become affluent and everyone wants to buy more expensive cars.' The company reported a consolidated net profit of ₹ 3,911 crore for the January–March 2025 quarter, 1% lower than ₹ 3,952 crore in the same period last year. Revenue from operations rose 6.6% year-on-year to ₹ 40,920.1 crore, compared to ₹ 38,471.2 crore a year ago. Following the Q4FY25 results, the company's stock target price was revised downward to ₹ 12,886 from ₹ 13,290 by Japanese brokerage firm Nomura, while retaining its 'Neutral.' rating on the stock. Axis Securities also reduced its target price to ₹ 11,170 from ₹ 12,065 but maintained its 'Buy' rating. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions. First Published: 2 May 2025, 11:05 AM IST
&w=3840&q=100)
Business Standard
25-04-2025
- Automotive
- Business Standard
Maruti Suzuki plans up to $1 bn capex for new EV launch, higher exports
India's top carmaker Maruti Suzuki plans to invest up to 90 billion rupees ($1 billion) in the current fiscal year, it said on Friday, as it gears up to launch its first electric vehicle, boost exports and expand its existing car plant. Maruti, majority-owned by Japan's Suzuki Motor, will begin production of its first-ever electric vehicle, the 'e-Vitara', before September-end, Chairman R.C. Bhargava said in an earnings call. "I think the annual production... will be somewhere near 70,000 electric vehicles, the bulk of which will be exported," Bhargava said, adding that it wants to be India's top producer of EVs this year with plans to export it to Japan and Europe. With the 'e-Vitara,' Maruti seeks to enter a segment dominated by rival Tata Motors. EVs formed just 2.5 per cent of India's 4.3 million car sales last fiscal year but the government wants to grow this to 30 per cent by 2030 and is offering incentives to carmakers to build them locally. The company is already India's biggest exporter of cars, and the e-Vitara key will be key to further boost its overseas shipments, which it plans to grow by 20 per cent in the current fiscal year. Exports are turning increasingly important for Maruti at a time when domestic sales momentum in the world's third-largest car market is stalling, and the carmaker plans to continue with expansion plans at its factory in northern India. India's car sales by manufacturers to dealers grew at a slower pace for a second straight year in fiscal 2025, and manufacturers expect sales for the current year to grow by just 1 per cent-2 per cent. Later this year, Maruti will launch a new combustion engine SUV, Bhargava said, as the company looks to win back market share lost to smaller rivals who were quicker to capture Indians' rising affinity towards SUVs. Maruti will also fit all its cars with six airbags, he said, amid a bigger push towards safety. Bhargava said the company would remain unaffected by tariffs imposed by US President Donald Trump's administration as it does not export its cars to the country. Earlier in the day, Maruti reported a surprise fall in fourth-quarter profit as higher discounts and expenses weighed on earnings. Its shares closed about 2 per cent lower. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Recorder
25-04-2025
- Automotive
- Business Recorder
India's Maruti Suzuki plans up to $1 bln capex for new EV launch, higher exports
India's top carmaker Maruti Suzuki plans to invest up to 90 billion rupees ($1 billion) in the current fiscal year, it said on Friday, as it gears up to launch its first electric vehicle, boost exports and expand its existing car plant. Maruti, majority-owned by Japan's Suzuki Motor, will begin production of its first-ever electric vehicle, the 'e-Vitara', before September-end, Chairman R.C. Bhargava said in an earnings call. 'I think the annual production… will be somewhere near 70,000 electric vehicles, the bulk of which will be exported,' Bhargava said, adding that it wants to be India's top producer of EVs this year with plans to export it to Japan and Europe. With the 'e-Vitara,' Maruti seeks to enter a segment dominated by rival Tata Motors. EVs formed just 2.5% of India's 4.3 million car sales last fiscal year but the government wants to grow this to 30% by 2030 and is offering incentives to carmakers to build them locally. The company is already India's biggest exporter of cars, and the e-Vitara key will be key to further boost its overseas shipments, which it plans to grow by 20% in the current fiscal year. India's top carmaker Maruti Suzuki to invest over $860 million to set up another plant Exports are turning increasingly important for Maruti at a time when domestic sales momentum in the world's third-largest car market is stalling, and the carmaker plans to continue with expansion plans at its factory in northern India. India's car sales by manufacturers to dealers grew at a slower pace for a second straight year in fiscal 2025, and manufacturers expect sales for the current year to grow by just 1%-2%. Later this year, Maruti will launch a new combustion engine SUV, Bhargava said, as the company looks to win back market share lost to smaller rivals who were quicker to capture Indians' rising affinity towards SUVs. Maruti will also fit all its cars with six airbags, he said, amid a bigger push towards safety. Bhargava said the company would remain unaffected by tariffs imposed by U.S. President Donald Trump's administration as it does not export its cars to the country. Earlier in the day, Maruti reported a surprise fall in fourth-quarter profit as higher discounts and expenses weighed on earnings. Its shares closed about 2% lower.
Hindustan Times
25-04-2025
- Automotive
- Hindustan Times
Maruti Suzuki e Vitara delivery dates confirmed. Production limited to 70,000 units?
The Maruti Suzuki e Vitara was first unveiled at the Bharat Mobility Expo 2025. (ANI) Maruti Suzuki is all geared up to launch the e Vitara in the Indian and export markets. The Maruti Suzuki e Vitara was first unveiled to the Indian audiences at the Bharat Mobility Expo 2025 held in New Delhi. Being Maruti Suzuki's first-ever all-electric SUV it grabbed numerous eyeballs at the show. In a recently held press conference, R.C. Bhargava, the Chairman of Maruti Suzuki, confirmed that the deliveries of the e Vitara will begin in India by September 2025. The company officials also informed the press that the manufacturer has plans to produce about 70,000 EV units this year. Out of the planned 70,000 units, most of the units will be reserved for export markets. The remaining units will be sold domestically to test the Indian market as per demand. Also Read : Maruti Suzuki e Vitara to launch soon, likely on… The launch of the SUV can be expected sometime in May or June. Maruti Suzuki also confirmed that it does not have any plans to sell the electric vehicles through specialised dealerships and will be utilising its current capacity for sales. Another SUV is coming soon In further conversation, Chairman R.C. Bhargava also affirmed that Maruti Suzuki will be adding another SUV to its portfolio later this year. There have been multiple reports of the seven-seater version of the Maruti Suzuki Grand Vitara being spotted testing on Indian roads. This upcoming SUV could possibly be the seven-seater Grand Vitara. In the spy shots, the Grand Vitara seven-seater was seen having a free-standing touchscreen infotainment system that will support the wireless Android Auto and Apple CarPlay. Other changes are also expected in the cabin of the Grand Vitara seven-seater, including a slightly redesigned dashboard along with a new colour shade and possibly a new upholstery. Also Read : Maruti Suzuki Grand Vitara 7-seater spotted ahead of launch Six airbags on all Maruti cars At the conference, the officials also announced that all of the Maruti Suzuki cars will be updated to have six airbags as standard by the end of the year. Recently, the car maker has added this safety equipment to the MY2025 Grand Vitara and the MY2025 WagonR as well. Check out Upcoming Cars in India 2024, Best SUVs in India. First Published Date: 25 Apr 2025, 17:16 PM IST
