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Maruti Suzuki Shares Falls On e-Vitara Delay, Cuts Production Target; Key Points
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Shares of Maruti Suzuki fell following reports that the launch of its much-anticipated e-Vitara electric SUV is likely to be delayed
Shares of Maruti Suzuki fell 1% to Rs 12,427 on June 11, following reports that the launch of its much-anticipated e-Vitara electric SUV is likely to be delayed. According to sources cited by CNBC-TV18, the setback comes amid China's tightening of export controls on rare earth magnets—a move viewed as a strategic response to US-led trade pressures under the Trump administration.
As a result, India's largest carmaker has scaled back its electric vehicle (EV) production targets for FY26, reducing the goal from 88,000 units to 67,000 units. The initial plan to produce 26,500 EVs by September this year has also been cut to just 8,200 units, sources said.
Despite the early hiccups, Maruti Suzuki expects production to ramp up from October onwards, aiming to meet the revised full-year target. While the e-Vitara is already under production, current volumes remain constrained.
The e-Vitara, Maruti's first electric SUV, was initially set for launch in overseas markets like Japan and Europe before arriving in India. The delay could temporarily impact the company's domestic electrification strategy, although sources maintain that Maruti's long-term plans remain unchanged.
Maruti is not alone in facing these challenges. Two-wheeler majors Bajaj Auto and TVS Motor Company have also expressed concerns, warning that production may stall as early as next month due to the magnet shortage.
'With China accounting for nearly 90% of global magnet output, finding substitutes is neither easy nor quick," said Shrirdhar Kallani of Axis Securities. 'Alternatives from Malaysia, Vietnam, or Australia lack scale and cost competitiveness, and testing and validating new sources could take years."
Meanwhile, Commerce Minister Piyush Goyal stated from Bern, Switzerland, that India is actively exploring alternatives through diplomatic efforts and supply chain development. The Indian embassy has initiated discussions with Chinese authorities, and the commerce ministry is engaged in resolving the issue.
At around 9:45 am, Maruti Suzuki shares were trading at Rs 12,485, down 0.3% from the previous close. However, the stock remains up 11% so far in 2025.
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