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Informist, Friday, Sept. 12, 2025

 

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--Maruti Suzuki official: Re-routing China rare earth via south Asian nations
--Maruti Suzuki official: Using rare earth magnets more in top-selling cars
--Maruti Suzuki official: Cutting rare earth magnet use in lesser sold cars
--Maruti Suzuki official: Rare earth magnets issue is a struggle every month
--Maruti Suzuki official: Working to fit underbody CNG tank in more models

 

By Anand JC and Pallavi Singhal

 

NEW DELHI – Amid a lack of direct access to Chinese rare earth magnets, Maruti Suzuki India Ltd. is re-routing its supply from other south Asian countries to keep its production plans intact, a senior official of the automotive giant told Informist on the condition of anonymity. The company is also focusing its usage of the key input material more on its higher-selling cars and cutting back usage on lower-selling models, the official said.

 

Indian automobile companies have been struggling with a lack of access to Chinese rare earth magnets ever since Beijing curbed their export and that of related magnets in April. China, which controls over 90% of global processing capacity for these magnets, has not provided Indian companies access, which has upended companies' production plans to varying levels. 

 

"Rare earth magnet issue is causing a struggle every month (for the company)," the Maruti Suzuki official said. 

 

Political tensions between New Delhi and Beijing have seemingly cooled off in recent weeks, stoking hope of access to Chinese rare earth magnets. China has currently resumed shipments of rare earth magnets to the US and Europe.

 

According to media reports, Prime Minister Narendra Modi and Chinese President Xi Jinping discussed improving trade ties, with Beijing agreeing to lift restrictions on magnet exports, though no timeline was provided. "There is an intent, but there has been no change on the ground and magnet supply has not resumed," The Economic Times quoted Ashok Leyland's Managing Director and Chief Executive Officer, Shenu Agarwal, as saying.

 

Rare earth magnets are also used in critical automotive components of fossil fuel-run vehicles, but are particularly utilised in electric vehicle traction motors and power steering systems. Maruti Suzuki entered the electric vehicle space with the launch of e Vitara. While its launch has been delayed, the company still expects it to be rolled out in the ongoing financial year.

 

The company said it will launch only car models this year – the e Vitara and the Victoris. Maruti Suzuki launched its mid-sized sport utility vehicle Victoris earlier in September, with an eye-catching feature being the underbody compressed natural gas tank. Built using patented technology, this feature was included to give riders more boot space.

 

"Work, research is ongoing on how to fit these (underbody CNG tanks) in more variety of cars," the senior official from the company said.

 

Friday, shares of Maruti Suzuki closed 1.5% higher at INR 15,325 on the National Stock Exchange.  End

 

Edited by Deepshikha Bhardwaj

 

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