Buy Maruti Suzuki: Rs 13,500 Target Price Despite EV Hiccups: Emkay

Maruti Suzuki has cut near-term production targets for its electric vehicle (EV) e-Vitara by two-thirds due to the shortage of rare-earth magnets, according to media reports.

The shares of Maruti Suzuki declined 1% to Rs 12,427 on June 11, 2025 after the reports of delays in its electric SUV, the e-Vitara.

During the mid-morning trade, the stock also slightly recovered to Rs 12,485, marginally down by 0.3% from the previous close.

Despite the drop, Maruti Suzuki shares have gained 11% year-to-date in 2025.

Maruti Suzuki Near-Term Production Outlook: Emkay

The brokerage firm Emkay Global in a report said that MSIL is currently facing delays in the production ramp-up of its grounds-up EV, the e-Vitara, due to supply related challenges of rare-earth materials and has scaled back the production H1FY26, while maintaining its EV volume guidance of 67K units for the year, along with a major ramp-up in the second half of this fiscal.

The brokerage also continues to prefer MSIL due better launch-visibility of ICE-SUV as well as valuation comfort, small car recovery, improving product mix and reasonable valuation.

The brokerage, in a separate report also cited Hemal Thakkar, Senior Practice Leader and Director at Crisil Intelligence saying, "EVs, PVs, 2Ws, and CVs (in that order) are likely to face the maximum disruption. "

EV motors, Thakkar said, "use HREEs like dysprosium and terbium to maintain efficiency at high operating temperatures. For E-2Ws, magnets used in motors cost Rs 150, whereas in PVs, the
cost ranges from Rs 2K-24K depending on a variety of features. The issue is not cost but availability and sourcing alternatives. While ICE 2Ws/3Ws remain relatively unaffected in
the short term, the E-2Ws, especially those requiring permanent magnet synchronous motors (PMSMs), are more vulnerable due to limited design flexibility."

Indian OEMs and suppliers are actively engaging with the Indian Ministry of External Affairs and relevant Chinese ministries to secure interim relief and fast-track approvals and remain optimistic about reaching a resolution within the next 1.5-2 weeks.

Maruti Suzuki Share Price Target

The brokerage maintained a 'BUY' rating, with an unchanged target price of Rs 13,500 at s25x core Mar-27E+ Rs 2,750 cash/sh.

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