India’s largest carmaker, Maruti Suzuki, is grappling with supply chain uncertainty as China restricts rare earth magnet exports. While operations remain stable for now, the company has been forced to import parts and seek alternatives. Stocks may last only till July, raising concerns for its upcoming EV production.
Maruti Suzuki India Ltd, the country’s biggest carmaker by volume, is facing mounting pressure due to China’s recent restrictions on rare earth magnet exports. These magnets, though small components, are critical for electric vehicles (EVs) and hybrid systems.
The company has confirmed that while current operations remain unaffected, it is actively exploring multiple solutions to ensure continuity. Rare earth magnets are vital for motors in EVs, and the shortage could impact Maruti’s maiden EV project, the e-Vitara, slated for rollout later this year.
Key Highlights:
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China’s export curbs since April 2025 have disrupted India’s supply chain, with over 80% of India’s 540-tonne magnet imports sourced from China.
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Maruti Suzuki has stock till July-end, after which production risks loom, especially for EVs.
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The company is pursuing alternative suppliers and seeking government support to expedite import approvals.
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Despite uncertainty, current operations remain unaffected, but industry-wide concerns persist.
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The crisis underscores India’s dependence on China for critical components and the urgent need to diversify sourcing.
Sources: Fortune India, Moneycontrol, The Economic Times