New Delhi, June 12
Maruti Suzuki India on Thursday denied any disruption to its operations due to the rare earth magnet crisis, saying that they are monitoring the evolving situation.
Reports have surfaced that the production plans for the automaker’s upcoming electric sport utility vehicle (SUV), the e-Vitara, may be affected due to China’s restriction on exports of rare earth minerals. The e-Vitara is expected to be launched in India before the end of September.
“Regarding the situation on rare earth, as of now, there is no disruption in our operation due to this issue. There is a lot of uncertainty, and the situation is continuously evolving,” a Maruti Suzuki India spokesperson said on the sidelines of the announcement of Bharat NCAP safety ratings of the Dzire compact sedan and the Baleno premium hatchback.
"We are monitoring the situation and pursuing multiple solutions to ensure continuity in our operations. If and when there is any material impact to our business, we will inform all stakeholders in line with regulatory requirements," the spokesperson added.
The situation continues to evolve for the Indian automotive players in their quest to have a steady flow of rare earth magnets amid China’s export restrictions.
Rare earth magnets, low in cost but critical in function, could emerge as a key supply-side risk for the India’s automotive sector if China’s export restrictions and delays in shipment clearances persist.