Suzuki Halts Swift Production In Japan; Will India Be Hit? Here's What Company Said

Suzuki Motor has temporarily halted production of its popular Swift subcompact car—excluding the Swift Sport variant—due to a shortage of components linked to China’s restrictions on rare earth exports, according to sources cited by Reuters This marks the first reported instance of a Japanese carmaker being directly affected by Beijing’s recent trade measures.

Also read: Maruti Suzuki India Share Price: Auto Maker’s Rs 925 Crore Green Push Powers Stock Surge | Republic World

Indian operations unimpacted

However, Suzuki's Indian subsidiary Maruti Suzuki categorically asserted that the Swift made in India will remain unimpacted. “The news refers to production stoppage in Japan and not India,” stated Maruti Suzuki spokesperson in response to queries sent by Republic Business.

Earlier, Rahul Bharti, senior executive director, corporate affairs, in an earnings call, told reporters that China's export restrictions on rare earth magnets will have negligible impact on the company.

"It is not a restriction. It is an endorsement of end use. In case there is an issue, we will ... inform all our stakeholders, including the stock exchange," Rahul Bharti, told reporters.

Global Swift impacted

Meanwhile, production of the Swift in Japan was paused on May 26, with Suzuki citing “supply chain” issues. While the company has not officially disclosed the exact cause, sources indicated that the disruption stems from China’s suspension of rare earth and magnet exports—a move that has begun to ripple across global manufacturing sectors.

In a statement, Suzuki said it plans to partially resume Swift production on June 13, with full operations expected to restart after June 16, as the outlook for parts availability has become "clearer."

The automaker declined to comment on whether China's export policy was the reason behind the stoppage. The sources, who requested anonymity confirmed the rare earth-related disruption.

China's rare earth exports restrictions

China’s export restrictions, implemented in April, have raised alarms across key industries—including automotive, aerospace, semiconductors, and defense—by threatening the supply of critical materials used in components such as electric motors and sensors. Several European parts manufacturers have already suspended production, and Mercedes-Benz is reportedly exploring measures to safeguard its supply chain from further disruptions.

Meanwhile, Japan is expected to propose closer collaboration with the United States on rare earth supply strategies during upcoming trade negotiations, as reported by the Nikkei business daily.