India’s largest carmaker, Maruti Suzuki, has clarified that its vehicle production is running smoothly despite a global shortage of rare earth magnets, a key component used in electric and hybrid vehicles.
The company said there has been no disruption in its operations so far, even as other global automakers are reportedly facing supply challenges.
Rare Earth Magnet Concerns Globally
Rare earth magnets are crucial for manufacturing electric motors, hybrid engines, and EV components. A shortage of these materials, especially due to China’s tightened exports, has raised concerns in the global auto industry.
However, Maruti Suzuki assured that it has taken proactive measures to manage supplies efficiently. The company is working closely with its suppliers and monitoring the situation carefully.
Focus on Supply Chain Resilience
Speaking on the issue, senior officials from Maruti said the company is focused on strengthening its supply chain to avoid any future risks. This includes diversifying sources, securing inventory buffers, and staying in regular contact with global partners.
While Maruti currently has limited exposure to electric vehicles, its long-term strategy includes a gradual shift toward EVs. The company believes building a resilient and localised supply chain will be crucial as it scales its EV plans in India.
