Rare Earth Supply Crisis: Maruti Suzuki Says No Disruption in Operations

India’s largest car manufacturer, Maruti Suzuki, has addressed market concerns regarding the global rare earth supply crisis. Amid growing speculation around production delays, the company issued a formal clarification outlining its current operational status and approach to mitigating risks associated with raw material shortages.

Rare Earth Supply Crisis: Maruti Says Operations Remain Unaffected

Maruti Suzuki India Ltd (MSIL) stated on Thursday that its manufacturing activities remain unaffected by the ongoing global shortage of rare earth magnets. These materials are critical components in the production of electric vehicles (EVs), particularly in electric motors.

Despite reports of production adjustments, the company clarified that there is no disruption to its operational flow at present. It confirmed that all production lines are functioning normally and that supply chains remain active across all models.

Ongoing Monitoring of Supply Chain Conditions

Maruti Suzuki acknowledged that the rare earth supply situation remains “uncertain and evolving.” The company noted that while there has been no immediate material impact, it continues to closely monitor developments in the international supply chain.

The automaker is actively exploring alternative sourcing strategies to secure continuity in supply for key raw materials used in its electric vehicle lineup. Internal assessments are being conducted regularly to evaluate potential future implications.

EV Production Adjustments

The clarification followed a Reuters report earlier this week suggesting that Maruti had reduced the production estimate for its upcoming electric SUV, the e-Vitara, by nearly two-thirds. The report cited rare earth shortages as a key constraint affecting production planning.

While Maruti Suzuki did not directly address the e-Vitara figures in its official statement, it reiterated its commitment to transparency and assured stakeholders that any material change will be communicated in due course.

Global Supply Constraints Affecting Auto Industry

The global auto sector has faced challenges due to disruptions in rare earth element supply chains. Rare earth magnets are vital for electric drivetrain systems, and supply issues have the potential to impact multiple automakers worldwide.

Countries that are heavily dependent on imports of rare earths, particularly for EV and battery production, are assessing their strategic reserves and considering alternative materials.

Maruti Suzuki India Share Price Performance

On June 12, 2025, Maruti Suzuki India Limited share price opened at ₹12459.00 on NSE, above the previous close of ₹12,452.00. During the day, it surged to ₹12,490.00 and dipped to ₹12,397.00. The stock is trading at ₹12,453.00 as of 11:36 AM. The stock registered a marginal change of 0.01%.

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Conclusion

Maruti Suzuki has confirmed that its current operations remain unaffected by the rare earth shortage. While acknowledging the volatility of the situation, the company is actively working on multiple strategies to safeguard production and supply continuity, especially for its electric vehicle segment.

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