EV Hurdles Ahead? Why Maruti Suzuki Share Price Target Isn’t Changing Yet

Maruti Suzuki India Ltd. (MSIL) continues to enjoy investor confidence from brokerage firm Emkay Global, which has reiterated a ‘Buy’ rating on the stock with an unchanged target price of Rs 13,500 with the current market price (CMP) of Rs 12,520.

This comes even as MSIL faces production delays for its much-anticipated grounds-up electric vehicle, the E-Vitara, due to supply-related challenges of rare earth metals.

According to Emkay’s report, “As per media articles, MSIL is currently facing certain delays in the production ramp-up of its grounds-up EV, the E-Vitara, owing to supply-related challenges of rare earth metals and has scaled back the production in H1FY26 while maintaining its FY26 EV volume guidance of 67K units with major ramp-up in H2FY26.”

E-Vitara EV Ramp-Up Hits Rare Earth Roadblock
The company has cut its April–September 2025 E-Vitara production target to 8,200 units, significantly below its earlier plan of 26,500 units. However, it aims to make up ground in the second half of FY26 by producing 58,728 units—equivalent to around 440 units per day. This marks an aggressive increase over the earlier H2FY26 target of 40,437 units.
Interestingly, MSIL Chairman R.C. Bhargava, in a separate media interview, downplayed the production concerns, stating there is “no major impact” from the shortage of rare earth metals on their manufacturing plans.

Rare Earth Metal Supply Disruption a Key Risk
Following an expert call with Hemal Thakkar, Senior Practice Leader and Director at Crisil Intelligence, Emkay notes that both ICE and EV passenger vehicles face the highest exposure to rare earth metal shortages. “In PVs, the content of these rare earth metals ranges from Rs 2,000–24,000 depending on the features. The issue is not of cost but availability and alternative sourcing,” the report highlights.

Indian automakers and component suppliers are reportedly in talks with both India’s Ministry of External Affairs and relevant Chinese authorities to fast-track alternative sourcing and mitigate disruption, with optimism of resolution within the next 1.5 to 2 weeks.

 Maruti Suzuki Share Price Target
Despite the temporary production bottleneck, Emkay remains bullish on MSIL’s broader outlook. “We continue to like MSIL for its new launch visibility i.e. ICE-SUV launch in Aug-25, optionality of small car recovery (led by rural, 8th pay commission), improving product mix (in favor of SUVs), and reasonable valuations (near 1STD below LTA),” the brokerage said.

The target price of Rs 13,500 includes 25x core March 2027E EPS and approximately Rs 2,750 per share in cash. However, Emkay cautioned that its current forecast of 69,000 E-Vitara units for FY26E could face downside risk if production delays persist.
 

Read More 
Stock Market Today: Israel-Iran Tensions Jolt BSE Sensex, Nifty 50

Disclaimer

The views expressed in this article are purely informational and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds