- विज्ञापन -
New Delhi: Maruti Suzuki India has clarified that its operations are currently unaffected by the ongoing rare earth magnet shortage, while confirming that it is closely monitoring the situation.
There have been reports suggesting that production plans for the upcoming electric SUV, the e-Vitara, could face delays due to China’s restrictions on the export of rare earth minerals. The e-Vitara is scheduled to be launched in India before the end of September.
A Maruti Suzuki spokesperson stated, “Currently, there is no disruption in our operations related to the rare earth issue. The situation is uncertain and constantly changing, so we are keeping a close watch.” They added, “We are exploring multiple solutions to maintain operational continuity. If any significant impact on our business occurs, we will notify all stakeholders in accordance with regulatory requirements.”
The Indian automotive industry remains attentive to the evolving supply of rare earth magnets, which are essential but low-cost components that could become a supply chain risk if China’s export restrictions and shipment delays continue.
A disruption of over a month could impede EV launches, hamper production, and slow sector growth, according to a Crisil Ratings report. To address this, the government and automakers are focusing on short-term measures like building strategic stockpiles, sourcing alternative suppliers, and boosting domestic manufacturing under Production Linked Incentive schemes.
Long-term strategies involve reducing dependency on imports by fast-tracking exploration of domestic rare earth resources, establishing local production facilities, and investing in recycling infrastructure.
In the event of supply constraints, magnets might be diverted to internal combustion engine (ICE) vehicles, which require fewer units, potentially affecting EV growth.
Notably, in April, China— the world’s leading exporter of rare earth magnets— imposed export restrictions on seven rare earth elements and finished magnets, requiring export licenses and end-use declarations to prevent re-export or use in defense.
India imported over 80% of its 540-tonne magnet requirements from China in the last fiscal year, highlighting the dependency on imports.
