A RARE REPORT CARD

How automakers manoeuvred a quarter of disrupted supply after China decided to tighten control of the rare-earth supply chain.

- BY RISHI KANT

AHEAD OF THE FIRST quarter results, all eyes were on the rare-earth element supply runways of automotive companies.

As China continued its blockade, it was widely expected that the impact of the clampdown would become clearer as manufacturers' stock of rare-earth elements begin to run out.

Maruti Suzuki was among the first auto firms where the impact of the rare-earth magnet supply crunch was becoming palpable as the launch of e VITARA, its first battery electric vehicle (BEV), fast approached. Reports suggested that India's largest passenger vehicles maker pruned e VITARA's production by two-thirds to 8,221 units from its original target of 26,512. However, the company denied this. “(MSIL) has so far managed to ensure that no production was lost due to a shortage of magnets,” R.C. Bhargava, chairman, Maruti Suzuki, stated in the FY25 annual report.

“It is a challenge, and our engineers are working to mitigate and ensure we do not have any impact,” said Rahul Bharti, senior executive officer, corporate affairs, MSIL, on the sidelines of its Q1FY26 results. He added that the company was managing it. “If and when there is an impact, we will come back to you. Rare-earth magnets are used in EVs and internal combustion engine (ICE) vehicles. The consumption of magnets in EVs is much higher. In ICEs, it is much lower, but it does exist. Mostly it is in the motor, in sensors or some electrical parts.”