India’s leading automaker, Maruti Suzuki, has dramatically reduced its near-term production plans for the e-Vitara, its debut electric vehicle, due to shortages in rare earth materials. Originally targeting 26,500 units between April and September, the company now aims to produce just 8,200 units—a two-thirds cut. The decision reflects broader disruptions in the auto industry caused by China’s export restrictions on critical rare earths, which are essential for EV components.
Despite the setback, Maruti remains committed to its annual target of 67,000 e-Vitaras by March 2026, planning a significant production ramp-up in the latter half of the fiscal year. The e-Vitara is a cornerstone of Maruti’s EV strategy in India, a market where the government is pushing for EVs to make up 30% of sales by 2030. However, the delay could pose challenges as competitors like Tata Motors and Mahindra & Mahindra dominate India’s growing EV segment.
The rare earths shortage adds another hurdle for Maruti, which has already seen its market share shrink in recent years. Parent company Suzuki has also adjusted its long-term sales targets for India, scaling back its EV lineup amid rising competition. While Maruti insists the e-Vitara’s launch timeline remains unaffected, analysts warn the company is lagging in a market where global players like Tesla are gearing up to enter.