Maruti Suzuki e-Vitara production plans revised amid supply crunch: Report

Maruti Suzuki’s debut in India’s electric vehicle (EV) landscape has hit an unexpected roadblock. The country’s largest carmaker has drastically scaled down production targets for its first all-electric SUV, the e-Vitara, slashing planned output for the April–September period by over 65 per cent, a Reuters report has stated. Internal records disclose that the automaker now seeks to manufacture only 8,200 units within this timeframe, a steep reduction from its original 26,500 units.

The action is due to a shortage of supply of rare earth materials—key elements that are part of EV components such as magnets and motors. China, which dominates the provision of these materials, has made them more difficult to obtain under tightened export controls. The control is part of an overarching geopolitical agenda by China, with the consequence cascading across the world's auto supply chains.

While reports suggest a detour from the orginal plan, Maruti Suzuki India keeps a firm eye on the target. In a recent press conference, the company expressed that as of now there is no disruption in our operation due to the rare earth magnet issue. It further added that while there is a lot of uncertainty, the situation is continuously evolving. "We are monitoring the situation and pursuing multiple solutions to ensure continuity in our operations. If and when there is any material impact to our business, we will inform all stakeholders in line with regulatory requirements," the company's said.

Company maintains annual EV production target

In spite of the delay, Maruti Suzuki is confident of achieving its yearly target of 67,000 e-Vitaras production by March 2026. The auto manufacturer is going to increase production sharply in the latter half of the financial year, aiming to clock over 58,000 units from October to March. The change in production timeline indicates a revised approach as the automaker tries to adjust to volatile supply situations.

The report states that under the new plan, Maruti hopes to manufacture around 440 e-Vitaras per day at its peak capacity during the remainder of the current fiscal year, making up for the initial slowdown. Two supply chain insiders, while confirming the production cut, said the exact scale of the reduction was known only to top executives.

Exports may see delays

The e-Vitara holds significant strategic value not just for the Indian market but also as a key export product for Suzuki’s global network. Majority of the EVs manufactured in India had to be exported to overseas destinations, such as Europe and Japan, with export deliveries anticipated to commence in mid-2025.

If production interruptions take any longer, this will impact Suzuki's international contractual obligations on supply and is anticipated to delay their ultimate electrification plans. Suzuki had already highlighted India as a manufacturing base for their global EV plans, adding even greater consequence to this slowdown.

Also watch: Maruti Suzuki plans EV dominance in India | Maruti’s EV strategy revealed | e Vitara launch soon

Fierce competition, shifting market dynamics

The timing could not be worse for Maruti Suzuki, which has been battling to recapture lost ground at the hands of competitors Tata Motors and Mahindra & Mahindra. Both of them have taken the lead in the electric mobility segment, providing feature-laden EVs that attract India's fast-changing consumer base.

Maruti’s share in the domestic passenger vehicle segment has slipped to 41 per cent, down from 51 per cent just five years ago. Compounding the problem is the coming of the world EV behemoth Tesla to India, which will only enhance the rivalry.

Scaling back long-term EV ambitions

The present production problems are not the only indication of recalibration in Maruti Suzuki. The parent entity of MSIL, Suzuki Motor Corporation, has reportedly changed its long-term plans and Indian production objectives. The automaker has trimmed its 2031 sales target from 3 million vehicles to 2.5 million and has reduced the number of planned EV launches from six to four.

Even though Maruti insists that there is no "material impact" on the e-Vitara's launch schedule at present, market analysts caution that persistent supply chain issues might cause cascading delays. With EV bookings still to commence and major competitors already well-placed in the market, the company is under growing pressure to deliver.

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