Maruti Suzuki, India’s largest carmaker, has confirmed it is actively pursuing multiple solutions to ensure uninterrupted manufacturing despite a growing global shortage of rare earth magnets. These magnets, essential for electric and hybrid vehicles, are primarily used in permanent magnet synchronous motors (PMSMs) due to their compact size, energy efficiency, and high torque.
The company stated that its current operations remain unaffected. “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,” Maruti Suzuki stated. The automaker is monitoring the situation closely and is prepared to report any significant impact in compliance with regulatory obligations.
The scarcity of rare earth materials follows China’s recent export restrictions. With China holding over 90% of the global processing capacity for rare earth elements, industries worldwide, including automotive, electronics, and clean energy, are facing mounting supply chain risks. The Indian auto industry, in particular, is urging the government to expedite import approvals to avoid production delays, especially for electric vehicle components.
Rare earth magnets are composed of critical elements such as samarium, gadolinium, terbium, dysprosium, and lutetium, vital across various advanced technologies including EV motors and defence applications. As Chinese restrictions tighten, Maruti Suzuki is ramping up efforts to diversify sourcing and secure a stable supply chain.
The automaker is also exploring long-term strategies such as forming international partnerships and investing in research to identify substitute materials or more efficient magnet applications. These initiatives reflect a broader industry shift toward resilience and innovation amidst ongoing supply chain disruptions.
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