NEW DELHI: In one of the first major companies to go for production cuts due to a shortage in rare earth magnet supplies from China, top carmaker Maruti Suzuki decided to cut back on the initial production schedule for its first electric car, the e-Vitara, by over two-thirds in the first half of this fiscal to factor in the squeeze in part shipments.While the company’s original production plan to manufacture around 67,000 units by March 2026 remains in place, it will “go slow in the first half of the fiscal” where it is building inventory for exports as well as some sales in the Indian market, supplier sources told TOI.“The original production plan for the FY26 April-September period was to do around 27,000 units. This now looks challenging, and Maruti Suzuki is looking to do only around 8,000 units or a little over that,” the sources said.A spokesperson for the company refused to comment on the matter.It is not yet clear whether the company will delay the launch of the e-Vitara, which is its first battery-electric vehicle (BEV) in the country. The e-Vitara is being produced at Maruti’s plant in Gujarat, and the company hoped to begin sales by the start of the festive season in the second half of the fiscal.The company showcased the car at the Auto Expo held in the national capital earlier this year and plans to take on electric models from Tata Motors, Mahindra & Mahindra, JSW MG Motor, and Hyundai with the green car.Sources said that the shortage of magnets, used for components like speedometers, electric motors, e-axles, electric water pumps, automatic transmission kits, speakers, sensors, and ignition coils in engines, is also seeing Maruti re-calibrate production plans for other models.“The company is assessing dealer inventory levels for various models and using the rare earth magnet inventory for cars that have a higher demand. The work on re-calibration of production plans is in progress. Almost daily assessments are being carried out to be in line with the market realities related to the availability of magnets,” one of the sources said.The e-Vitara is one of the most ambitious products from Maruti Suzuki, and the company plans to sell it across continents including Asia, Europe, Latin America, and Africa, and the home market India. The plan is to also do product-sharing with Toyota, which will be selling the car under a different badge and distinct design cues. This is in line with the product-sharing plans already in place between the two Japanese companies.Maruti officials have been negotiating with govt officials on the matter of magnet supplies, and through the industry body Society of Indian Automobile Manufacturers, the company has been seeking facilitation for an early resolution of the matter.The company is among those who submitted applications for getting supplies of the crucial ingredient through the process mandated by the Chinese govt. However, with delays from the Chinese side, there has been a demand that the govt and the Indian embassy in China intervene to hasten the approval process.The company recently said it would be difficult to give “very specific details” on the magnet crisis until it receives a response to its application submitted for consideration by the Chinese govt. “It is not a restriction. It is an endorsement of end use. In case there is an issue, we will inform all our stakeholders, including the stock exchange,” Rahul Bharti, Senior Executive Director, Corporate Affairs, said.
