Market Performance
Maruti Suzuki’s share price fell 1% to ₹12,427 on June 11 following reports of delays in its electric SUV, the e-Vitara. By mid-morning, the stock recovered slightly to ₹12,485, still down 0.3% from the previous close. Despite the drop, Maruti Suzuki shares have gained 11% year-to-date in 2025.
Key Developments
e-Vitara Launch Delayed, EV Production Targets Cut
- Maruti Suzuki has slashed its FY26 EV production target from 88,000 units to 67,000 units.
- Initial September 2025 production estimates reduced from 26,500 EVs to just 8,200 units.
- The company expects production to ramp up from October 2025 to meet revised targets.
The e-Vitara, Maruti’s first electric SUV, was set to debut in Japan and Europe before being introduced in India. The delay could impact short-term electrification plans, though long-term strategy remains unchanged.
Supply Chain Challenges Due to China’s Export Curbs
- With a 90% share in rare earth magnet production—key for EV motors—China controls the majority of the global supply.
- Automakers like Bajaj Auto and TVS Motor have also warned of potential production halts.
- Alternatives from Malaysia, Vietnam, or Australia are limited in scale and cost-effectiveness.
Government’s Response
Commerce Minister Piyush Goyal stated that India is:
- Exploring alternative supply chains.
- Engaging in diplomatic talks with China.
- Working on long-term solutions to reduce dependency.
Summary
- Maruti Suzuki’s share price declined due to delays in the e-Vitara and reduced EV targets.
- Production cuts reflect supply chain hurdles from China’s rare earth export controls.
- The government is seeking alternatives, but short-term disruptions persist.
Despite challenges, Maruti remains a strong player, with its stock up 11% YTD.
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