Maruti Suzuki eVitara Electric SUV Production Slashed By 66 %: China Is The REASON!
Maruti Suzuki - India’s largest car manufacturer - has a variety of models in their lineup. One of the much-awaited models from Maruti this year is their first-ever electric vehicle, eVitara. We have come across several videos of the eVitara online, and the car has also started arriving at several dealerships for display purposes. However, we now have a new report coming in that says Maruti is planning to slash the production of the yet-to-be-launched Maruti eVitara by 66 percent. Maruti is planning to slash the production because of rare earth material shortages.
The Maruti Suzuki eVitara, as we already know, will be manufactured here in India for both the domestic as well as international markets. The decision to cut production by two-thirds is because of China. The manufacturer had earlier said that they had not seen any impact yet in the form of a supply crisis. However, things have now changed, and the manufacturer now plans to manufacture about 8,200 units of eVitara between April and September. Originally, Maruti’s plan was to manufacture around 26,500 units of eVitara.
The reports mention that supply constraints in rare earth materials, which are important in making magnets and other components across a range of high-tech industries, have caused this issue.
China’s export curbs on some of these rare earth materials have caused an issue in the global auto industry. Many companies are warning of severe supply chain disruptions. The Maruti Suzuki eVitara is a very crucial product for Maruti in the Indian market. This crisis could actually affect Maruti’s parent company, as India is a major revenue-generating market for them.
Maruti not only had plans to manufacture this new EV in their Gujarat plant, these cars would also be exported to Europe and Japan. Maruti is already a bit late to the EV party and any more delays might affect the future of the product.
Many Indian manufacturers had warned us about such a situation in the past. Rajiv Bajaj, Managing Director of Bajaj Auto, had said that India’s EV industry remains critically dependent on China for a key component - heavy rare earth magnets - and this dependence poses a significant risk.
He had warned us about the rare earth materials situation and said that China could bring the Indian EV market to a standstill in a week. Similarly, TVS Motor Company Managing Director Sudarshan Venu also had a similar opinion and said China’s dominance over critical EV supply chains, especially rare earth magnets, could derail India’s electric mobility future before it finds its footing.
India is making efforts to localise the EV supply chain, including battery and motor component production. However, there are limitations when it comes to procuring the rare earth materials required for the production of the same.
Maruti eVitara
Maruti showcased the eVitara at the Bharat Mobility Expo this year, and it received an overwhelming response. Maruti shared a few details about the upcoming eSUV, including the battery pack and features. While display units have started arriving at several dealerships, Maruti is yet to start official bookings for the same.
The launch of the Maruti eVitara is expected to happen sometime around the festive season this year. The eVitara will compete with the likes of the Hyundai Creta Electric and Mahindra BE6 in the segment.