EV supply chain strain: Maruti Suzuki cuts e-VITARA production, rare earth magnets bottleneck worsens after China export curbs

India’s largest automaker Maruti Suzuki is slashing the production forecast for its upcoming electric SUV e-VITARA, amid a critical shortage of rare earth magnets, according to industry sources. The company now aims to roll out 8,000 units by September, down sharply from the originally planned 26,000+ units.The automaker, however, plans to meet its full-year production target of 67,000 units by ramping up output in later months, sources added. Maruti Suzuki declined to officially comment on the matter.The shortfall comes as China tightens export restrictions on rare earth elements and magnets — materials critical for electric motors in EVs. Since April 4, Beijing has mandated special licences for exporting seven types of rare earths, including samarium, gadolinium, terbium, dysprosium, and lutetium, which are used in everything from EV propulsion systems to missiles.“As of now, there is no impact on production,” Maruti Suzuki Chairman R C Bhargava said earlier this week. However, supply-side risks remain as China controls over 90% of global processing capacity for these essential materials.Carmakers urge Indian government to step inSeveral Indian carmakers have sought government intervention to expedite approvals from Chinese authorities via their local vendors for importing rare earth magnets. But no licences have been granted yet, creating uncertainty in the EV and hybrid vehicle manufacturing pipeline.Rare earth magnets are vital to permanent magnet synchronous motors (PMSMs), preferred in EVs for their high torque, efficiency, and compact design. While internal combustion engine vehicles use them in limited systems like electric power steering, their role is critical in electrified powertrains.