Why Are Maruti Suzuki Stocks Falling Today?

Shares of Maruti Suzuki declined nearly 1% on NSE to Rs 12,427 on June 11 amid reports that the country's largest carmaker's electric vehicle (EV) rollout is facing teething trouble. According to media reports citing unnamed sources, the much-awaited launch of the e-Vitara SUV could be delayed due to disruptions in the global supply of rare earth magnets, which are critical components in EV motors.
It may be recalled that in April, Beijing imposed stricter licensing rules on the export of certain rare earth alloys and permanent magnets, citing national security concerns. This was a direct response to the US imposing tariffs.

About rare earth magnets

For the uninitiated, rare earth magnets are essential to a wide range of modern vehicles, especially EVs and hybrids. They are essential for electric motors, braking systems, power steering, and other systems that rely on strong magnetic fields for efficiency and performance. At present, China dominates the processing and export of these materials — accounting for over 90% of global supply.

Also Read: Chinese Rare Earth Magnet Shortage: Will Your Favourite Car Cost You Way Higher Now? | Republic World

How Maruti got impacted

Owing to this critical parts shortage, India’s leading car manufacturer has revised its EV production plans for FY26. The earlier target of producing 88,000 units has now been reduced to 67,000 units. Media reports suggest that the company's short-term projections have also taken a hit as it is now looking to manufacture just 8,200 units instead of 26,500 EVs by September this year.
Despite the trimmed targets, Maruti Suzuki expects production to gain momentum from October onwards. The company is confident of meeting the revised annual goal, although production volumes currently remain modest.

Maruti Suzuki's maiden EV

The e-Vitara, which marks Maruti’s entry into the electric SUV segment, was initially scheduled to launch in international markets such as Japan and Europe before entering India. The delay in its domestic debut could temporarily affect the automaker’s electrification plans, as per sources. Company officials, however, indicated that its long-term EV roadmap remains intact.

Other companies too feel the pinch

It is pertinent to note that Maruti Suzuki isn’t the only carmaker that is facing challenges pertaining to rare earth supplies. Other original equipment manufacturers (OEMs), including Bajaj Auto and TVS Motor Company, have also raised red flags, warning that production lines may stall as early as next month if the situation doesn't improve.

According to Puneet Gupta, Director of India & ASEAN Auto Market at S&P Global Mobility, “Should the REE crisis extend beyond July, the industry may witness production disruptions, prompting OEMs to first taper market incentives. Subsequently, partial price hikes could follow, driven by rising logistics costs and growing strain in the demand-supply dynamics—potentially escalating input costs at the component level.”
As of 11:15 AM on June 11, Maruti Suzuki shares were trading at Rs 12,472, down 0.34% from the previous close. Despite today’s dip, the stock has gained 11% so far in 2025.