Maruti Suzuki Share Price in Focus on EVs Production Cut by Two-Thirds

Maruti Suzuki has lowered its production target for the e-Vitara, its first electric vehicle, due to a shortage of rare earth materials. According to an internal company document reviewed by Reuters, the automaker now plans to manufacture only 8,221 units between April and September 2025. The original target was 26,512 units, a cut of nearly two-thirds.

Reason for the Cut

The reduction is attributed to supply constraints in rare earths, which are essential for producing magnets used in electric motors. Reports suggest that the disruption is linked to China’s recent export restrictions on rare earth minerals. While some countries have begun securing export approvals from China, India is still waiting for clearance, causing delays in procurement.

Annual Target Remains Unchanged

Despite the cut in early production, Maruti Suzuki has not changed its annual goal of producing 67,000 e-Vitara units by March 2026. The company plans to make up the shortfall by increasing production in the second half of the fiscal year. Between October 2025 and March 2026, Maruti plans to produce 58,728 units, up from its earlier target of 40,437 for that period.

Exports and Market Impact

The e-Vitara is scheduled for export to markets such as Europe and Japan from mid-2025. India is Suzuki Motor’s largest revenue market and serves as a key hub for global EV production. Any production delay could affect these plans.

Read More: Suzuki Stops Swift Production as China Tightens Rare Earth Exports!

Market Share and Strategy Changes

Maruti’s passenger vehicle market share in India has declined to 41%, down from 51% in March 2020. Competitors such as Tata Motors and Mahindra & Mahindra currently lead in EV sales. Suzuki has revised its India sales forecast to 2.5 million vehicles by March 2031, down from 3 million. The number of planned EV launches has also been cut from 6 to 4. This segment is a key focus of the government, which aims for EVs to constitute 30% of all car sales by 2030, a significant leap from roughly 2.5% last year.

Maruti Suzuki Share Price Performance 

As of 09:14 AM on June 11, 2025, Maruti Suzuki India share price stood at ₹12,470, a 0.40% decrease. The stock has seen a 10.59% rise over the past 6 months and a 3.04% decline over the past year.

Conclusion

The reduction in e-Vitara production is to shift manufacturing timelines and may impact export schedules. Adjustments to sales targets and EV rollout plans indicate broader operational changes in response to supply chain constraints.

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