Latest news with #e-Vitara
Mint
3 hours ago
- Automotive
- Mint
Tata Motors eyes rare earth magnet sources, has enough stocks: Chandrasekaran
Tata Motors Ltd has enough stock of rare earth magnets, and the company is scouting for new sources amid China's export curbs, Tata Sons chairman Natarajan Chandrasekaran said. 'As of now, we are OK; we are not facing any issues. We are able to source the magnets we need, and are working on securing alternative sources of rare earth magnets,' Chandrasekaran said at the company's 80th annual shareholders' meeting on Friday. 'We are working with the government (on the issue).' Tata Motors, India's largest automaker by revenue, is among numerous businesses affected by China's export curbs on rare earth magnets, which are critical in automotive, aerospace, and electronics industries. Though the curbs were imposed in April as a trade war between the US and China and flared, the two rivals have since reached a deal. However, exports to India remain blocked, and domestic companies are pushing the government to engage Chinese officials to ease supplies. Chandrasekaran's comments on the rare earth magnet issue come a day after R.C. Bhargava, chairperson of Maruti Suzuki India Ltd, India's second-largest automaker and largest carmaker, said his company's stocks of rare earth magnets will last until July. On 11 June, Reuters reported that Maruti Suzuki had cut near-term production targets for its maiden electric vehicle e-Vitara by two-thirds because of rare earth shortages. The e-Vitara was expected to launch before September end. Out of the 54 shareholders who posed questions at Friday's virtual AGM, a fourth referred to rare earth magnets and the situation on the US tariff front. The chairperson also addressed the concerns of shareholders on US tariffs. 'The tariff impact will be primarily on Jaguar-Land Rover. Tariff has gone up from 2.5% to 27.5%, and under the UK-US FTA, the tariff is 10%. The overall impact would have been 1.6 billion pounds. But due to the steps taken by JLR, the impact has gone down to 600 million pounds, which is visible in the margin guidance,' Chandrasekaran told shareholders. JLR, the British subsidiary of Tata Motors, has trimmed its guidance on revenue growth to 5-7% for FY26 from 10% mentioned earlier. The company attributed the reduction to the impact of the tariffs and the slowdown in the Chinese market. In an interview with Mint earlier, Shailesh Chandra, managing director at Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, said that rare earths are required for both internal combustion engine vehicles and electric vehicles. China said on 4 April that companies seeking rare earth magnets must submit applications with end user certificates to the Chinese embassy, which then go to the provinces from where magnets are sourced. After approval from provincial authorities, the Chinese commerce ministry has to approve the applications. So far, no Indian company has received approval to receive shipments of these critical items. As per industry estimates, it takes about 45 days to get approval. Bajaj Auto Ltd's executive director Rakesh Sharma said during the company's earnings call on 29 May that the industry will face production cuts starting July if the situation is not resolved. However, Tata Motors' leadership remains confident that the situation is under control and will likely be resolved. Chandrasekaran said the Tata Group will continue its investments in the electric vehicle business, and will likely achieve the 30% penetration target in its overall portfolio before 2030. This was Chandrasekaran's first appearance at a Tata Group company annual general meeting this year. Earlier, he skipped the AGMs of Tata Consumer Products Ltd (TCPL) and Tata Consultancy Services on 18 and 19 June, as top Tata Group officials attended to the crisis over the Air India crash in Ahmedabad on 12 June. The AGMs of TCPL and TCS were presided over by board members P.B. Balaji and Keki Mistry, respectively. Chandrasekaran also condoled the deaths from the AI accident, and requested the board members and shareholders to observe a minute of silence. 'My thoughts are with family and friends who lost their loved ones and I know, we have the same feeling,' Chandrasekaran said in his opening address. 'This has been a long and unsettling week for all of us as a nation, as a group and at a very human level, navigating a very deep sorrow, grief and uncertainty all at the same time.' The chairperson also spoke of Ratan Tata, the group's chairman-emeritus who died last October. 'I had the opportunity to constantly share updates with Ratan Tata about the business in the last few years. While we all miss him, I want you to know that he would have been very proud of the turnaround of the business as Tata Motors was very close to his heart,' Chandrasekaran told shareholders.
Hindustan Times
2 days ago
- Automotive
- Hindustan Times
Made-in-India Suzuki e Vitara launched in the UK. India launch in…
The Suzuki e Vitara is now available in the UK priced between 29,999 Pounds and 37,799 Pounds (approx. ₹35-44 lakh) Notify me Suzuki has launched its maiden all-electric offering, the e Vitara, in the UK. The new Suzuki e Vitara is priced at 29,999 Pounds (approx. ₹ 35 lakh) in the UK for the base variant, going up to 37,799 Pounds (approx. ₹ 44 lakh) for the top-spec variant. The e-Vitara is manufactured in India at Suzuki's facility in Gujarat and exported to global markets. The model is slated to arrive in the country later this year. UK-Spec Suzuki e Vitara: Battery & Range The UK-spec Suzuki e Vitara is available in two variants - Motion and Ultra. The 49 kWh battery pack is available only on the Motion trim, while the larger 61 kWh battery pack is available on both trims. The latter also gets Suzuki's AllGrip all-wheel drive system that sends power to all four wheels. The e Vitara with the 49 kWh battery promises a range of 346 km (WLTP), while the 61 kWh version has a higher range of 428 km (WLTP) on a single charge. The automaker is offering a warranty of 10 years/160,000 km on the vehicle and battery in the UK. Also Read : Maruti Suzuki cuts near-term e Vitara production plan amid rare earth magnet crisis The Suzuki e Vitara is available in two variants - Motion and Ultra, in the UK. Battery options include a 49 kWh and 61 kWh with the latter getting a dual-motor setup The e Vitara is powered by a single motor on the lower trims, which produces 142 bhp. The higher trims get the dual-motor setup with 4WD churning out 178 bhp and 300 Nm of peak torque. The dual motor variants are paired with only the 61 kWh battery pack, offering a reduced range of 412 km (WLTP). Maruti Suzuki e Vitara: India Launch The Maruti Suzuki e Vitara made its India debut at the 2025 Bharat Mobility Global Expo in January, and was slated to arrive in the domestic market by March this year. However, the launch has been delayed to September this year. The e Vitara is made in India at the automaker's plant in Gujarat for global markets. The launch is slated for September, according to Maruti's previous announcement Not just the e Vitara, Suzuki will also manufacture its badge-engineered cousin, the Toyota Urban Cruiser EV, which was also showcased at Bharat Mobility, for global markets. That said, Toyota India is yet to announce a timeline for the launch of the model in the country. Needless to say, the e Vitara will be hitting the showroom floors first. Suzuki will be churning out about 70,000 units of the e Vitara in its first year of production, most of which have been allocated for exports. That said, production plans were rejigged in the wake of the rare earth magnet shortages, reducing the outflow for the first two quarters (Q1 & Q2) of FY2026. The company now plans to produce 8,200 units, against a previous estimate of 26,500 units during the same period. It needs to be seen if Maruti will be able to hold on to the September timeline for launching the e Vitara or will have to rework its plans again for India. Check out Upcoming EV Cars in India. First Published Date: 18 Jun 2025, 11:53 AM IST
Hindustan Times
4 days ago
- Automotive
- Hindustan Times
Maruti Suzuki e-Vitara production plan recalibrated, 8,200 units to be built in Q1 and Q2 against 26,500 units planned
A model poses next to Maruti Suzuki's first EV, the e-Vitara SUV, on display at Bharat Mobility Global Expo 2025. (REUTERS) Notify me Maruti Suzuki has slashed near-term production targets for its maiden electric car, e-Vitara, by two-thirds owing to the ongoing rare earth magnet shortages. The Maruti Suzuki e-Vitara electric SUV, which is the carmaker's first-ever electric car, is slated to be launched in India in September 2025. Ahead of that, the carmaker previously revealed its plan to make 26,500 units in the first and second quarters of this fiscal, between April and September. However, with the ongoing supply chain crisis, Maruti Suzuki has slashed the target significantly to 8,200 units. This comes as the latest sign of disruption to the Indian auto industry owing to China's export restrictions on rare earth magnets. Reuters has reported, citing a company document, that Maruti Suzuki now plans to make about 8,200 units of e-Vitara SUVs between April and September this year, versus an original target of 26,500 units during the same period. However, the report stated that Maruti Suzuki still plans to meet its output target of 67,000 e-Vitara for this financial year ending in March 2026. For this, the auto company aims to ramp up production in the subsequent months. The report has stated that the company document cited supply constraints in rare earth materials that are vital in making magnets and other components across a range of high-tech industries. Also Read : Upcoming cars in India Maruti Suzuki e-Vitara is crucial to the car manufacturer's electric mobility push in the country. The automaker previously showcased the EV in its production guises, and the latest was in production-ready form at the Bharat Mobility Global Expo 2025. Upon launch, this will mark the entry of the automaker in the Indian electric vehicle market, where some of the key rivals such as Tata Motors, Hyundai, MG, and Mahindra have already launched their respective products. Despite being a late entrant in the Indian electric passenger vehicle market, Maruti Suzuki hopes to become a leading player in the segment. For this, the OEM is betting big on the e-Vitara. In such a situation, this setback could also hurt Maruti Suzuki's parent, Suzuki Motor, for which India is the biggest market by revenue and a global production hub for EVs. The bulk of the made-in-India e-Vitaras are earmarked for export by Suzuki to its major markets like Europe and Japan around summer 2025. Interestingly, this development comes days after Maruti Suzuki's Chairman RC Bharagava claimed that there was no impact on production due to the rare earth magnet crisis. Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date: 16 Jun 2025, 09:18 AM IST
Mint
13-06-2025
- Automotive
- Mint
China's rare earth crackdown: Time to rethink these Indian EV stock holdings?
China's latest restrictions on exports of rare earth minerals have sent ripples through the global electric vehicle (EV) supply chain, leaving several Indian manufacturers in the firing line. The country accounts for nearly 70% of the world's rare earth mining, with the rest split among the US, Australia, and Myanmar. That dominance means any supply disruption can reverberate across industries, especially in countries like India that rely heavily on imports. With key components at risk, input costs may surge and production timelines could slip, tightening margins for Indian EV companies just as global competition intensifies. Read this | India's EV dreams are caught between rare earth and a hard place This article looks at three Indian EV players now exposed to the rare earth squeeze—and what the evolving crisis could mean for their near-term performance. #1 Maruti Suzuki First up is Maruti Suzuki, India's largest passenger vehicle maker by production and sales, and a subsidiary of Japan's Suzuki Motor Corp. Its lineup spans hatchbacks, compact SUVs, and premium sedans. Maruti has reportedly slashed its near-term production target for the electric SUV e-Vitara by nearly two-thirds due to a shortage of rare earth materials. The company now plans to produce just 8,221 units between April and September, down from 26,512. A company document cited supply constraints in rare earth elements as the main reason. Unveiled at the Bharat Mobility Global Expo 2025, the e-Vitara was intended to be a marquee launch, with FY26 sales targeted at 70,000 units. Parent Suzuki has also scaled back its India ambitions. It recently lowered its FY31 sales target from 3 million to 2.5 million vehicles, trimming its planned EV lineup for India from six models to four. India remains Suzuki's largest market by revenue, but these revisions suggest a cautious approach at a time when global and local rivals are accelerating. Despite the strategic retreat in EVs, Maruti Suzuki has performed strongly over the past five years. Revenue has grown at a 15% CAGR, powered by post-Covid recovery and improved capacity utilization. Net profit has expanded at an even faster 35% CAGR, reflecting healthy operating leverage, a better product mix, and cost efficiencies. The company's balance sheet is among the strongest in the sector, with zero debt, a 16% return on equity (RoE), and 21.76% return on capital employed (RoCE) - metrics that outshine peers like M&M and Tata Motors. To drive future growth, Maruti is betting on a broader SUV and BEV portfolio. It has committed ₹8,000-9,000 crore in capex to expand annual production capacity to 4 million units, and plans to launch six EVs by FY31. However, its EV ambitions may be derailed if rare earth supplies remain tight. Read this | China's rare earth export curbs are India's wake-up call The market appears to be factoring in these headwinds: Maruti shares are down 3.5% over the past year. The stock trades below its 10-year average of 37.3x at 26.9x P/E, suggesting the market is pricing in some of these near-term challenges and uncertainties around its EV transition. #2 TVS Motor Next is TVS Motor, India's largest electric two-wheeler maker and the only domestic OEM with fully in-house EV and connected tech capabilities—from batteries to infotainment systems. TVS holds a 24% market share in the electric two-wheeler space (as of May 2025), led by its flagship iQube. It has also launched the electric three-wheeler EV King Max, expanding its portfolio. In a recent interview, managing director Sudarshan Venu acknowledged looming supply chain disruptions from China's export curbs. He warned of possible production halts and price hikes, and expects the impact to reflect in industry-wide numbers by June or July. EVs currently contribute 9.3% of TVS's revenue, and several new models are nearing launch. While long-term prospects remain solid, rare earth volatility poses clear near-term risks. Over the past five years, TVS has delivered strong growth: Revenue has risen at a 19.5% CAGR and net profit at a 31.6% CAGR. The company's broad presence across motorcycles, scooters, and mopeds has helped build scale and market depth. Operating profit margins have improved from 12% in FY20 to 15% in FY25, driven by cost discipline and a more premium product mix, likely driven by higher-margin premium motorcycles and EVs. This has translated into a robust RoE of 28.9% for the company – highest among its peers. However, RoCE stands lower at 19.4% mainly due to a higher debt burden. TVS Motor's debt-to-equity ratio stands high at 1.73x as capital expenditures have been significant (Rs. 1,800 crores in FY24 standalone), primarily for new products and technology (including EV and three-wheeler EV), these are seen as investments for future top-line growth and improved free cash flow in the long run Read this | TVS Motor posts 75% profit growth, but worries about capital allocation persist Shares are down 1.11% over the past month, likely reflecting concerns about EV supply constraints, but are still up 12.8% over the past year. Valuations are rich: TVS currently trades at a P/E of 58.9x, well above its 10-year average of 47.6x. This premium pricing suggests that a large part of its future growth potential may already be factored into the stock price. #3 Sona BLW Precision Forgings (Sona Comstar) The third company under pressure is Sona Comstar, a global mobility tech firm that supplies EV and non-EV components to OEMs around the world, including Tata, Maruti Suzuki, Bajaj Auto, and M&M. Unlike Maruti and TVS, which have avoided detailed commentary, Sona Comstar has been upfront about the risks. On its March 2025 earnings call, it explicitly flagged the potential for global production disruptions due to reliance on Chinese rare earth materials, especially magnets critical to EV powertrains. To mitigate this, management is engaging with stakeholders including the Chinese embassy, while also exploring alternative technologies such as ferrite magnets and non-China sourcing. Still, the pinch is already being felt. China reportedly rejected one of the company's two applications to import rare earth magnets in late May. The second is still under review. Sona Comstar is actively working with OEM partners to balance performance trade-offs in rare-earth-free motors, though that transition could come with cost and timeline challenges. Despite the external headwinds, the company's fundamentals remain robust. Over the last five years, the company's revenue has grown at a CAGR of 28.1% driven by rising electrification trends and increased global traction in powertrain solutions while net profit has grown at a CAGR of 10.8%. Operating profit margins (OPM) have also remained healthy and stable, ranging between 23% and 29% during this period. Its 5-year average OPM stands at 27.2%, well above peers like Bharat Forge and Samvardhana Motherson who have OPMs in the range of 9-18%. Return ratios, too, stand robust with an RoE of 15.1% and RoCE of 18.7%. Debt-to-equity ratio stands low at 0.04x. The company is sharply focused on the EV segment: EVs account for 39% of its total revenue, and a massive 77% of its ₹24,000 crore order book comes from EV programmes. This makes it especially vulnerable to rare earth shortages. While Sona Comstar is proactively exploring solutions, the transition may impact cost structures, product performance, and timelines. Investors must watch how effectively the company manages this material transition and whether it can maintain its technological edge and margins amid supply chain reengineering. Shares have fallen 22% over the past year, underperforming broader auto component peers. The stock trades at a P/E of 51.7x, below its 5-year average of 76x, though still expensive. Also read | Automakers urge Indian govt for diplomatic outreach to China for rare earths Conclusion All three companies—Maruti Suzuki, TVS Motor, and Sona Comstar—have strong long-term fundamentals and strategic clarity. But in the short term, the rare earth supply crunch is a real and rising risk. Production timelines, margin structures, and investor sentiment may all be affected. China's new export rules demand end-use declarations, approvals from Indian ministries and the Chinese embassy, and final clearance from Beijing. Despite 30+ pending applications from Indian automakers, none have been cleared. Delays now exceed the promised 40–45 days, and a proposed dialogue between Indian auto bodies and Chinese officials remains stuck in red tape. For more such analyses, read Profit Pulse. Until there is more clarity on approvals and alternative sourcing, investors may want to tread carefully—and track closely how these companies adapt to a fast-moving supply chain challenge. About the author: Ayesha Shetty is a research analyst registered with the Securities and Exchange Board of India. She is a certified Financial Risk Manager (FRM) and is working toward the Chartered Financial Analyst (CFA) designation. Disclosure: The author does not hold shares in any of the companies discussed. The views expressed are for informational purposes only and should not be considered investment advice. Readers should conduct their own research and consult a financial professional before making investment decisions.
Time of India
12-06-2025
- Automotive
- Time of India
Maruti Suzuki denies operational impact amid rare earth magnet concerns
New Delhi: Maruti Suzuki India on Thursday clarified that its operations remain unaffected by the ongoing rare earth magnet supply constraints, even as the Indian auto industry grapples with uncertainty stemming from China's recent export restrictions on critical materials, stated IANS. Responding to reports that the production of its upcoming electric SUV , the e-Vitara , might be impacted, a company spokesperson said: '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.' The statement came during the announcement of Bharat NCAP safety ratings for the Baleno and Dzire models. Expected to be launched by the end of September, the e-Vitara is a key part of Maruti's electric mobility strategy. The company added that it is actively monitoring the situation and pursuing multiple solutions to ensure continuity: 'If and when there is any material impact to our business, we will inform all stakeholders in line with regulatory requirements.' Broader Industry Risks The Indian auto sector is on alert after China, which processes over 90 per cent of the world's rare earth magnets , imposed export restrictions in April. These new rules require licences and detailed disclosures about the end-use of materials like samarium, dysprosium, and terbium—elements essential for manufacturing electric motors in EVs. According to Crisil Ratings , rare earth magnets—though inexpensive—are crucial components, and continued supply disruptions could pose a significant risk to India's automotive production pipeline. A disruption lasting beyond a month may delay EV launches, impact production schedules, and weigh down the sector's growth momentum, the agency warned. Short- and Long-Term Strategies To mitigate the risk, both the government and automakers are acting on dual fronts. In the short term, efforts are focused on building strategic inventories, identifying alternative global suppliers, and ramping up domestic assembly under the Production Linked Incentive (PLI) scheme. Long-term solutions include reducing import dependency through accelerated exploration of domestic rare earth deposits, investing in local magnet manufacturing, and creating recycling infrastructure to reclaim critical materials. EV Growth at Risk In the current constrained supply scenario, there are concerns that available magnets could be diverted to internal combustion engine (ICE) vehicles, which require fewer units. This could slow down India's EV momentum, especially at a time when automakers are ramping up investments in electric mobility. India imported over 80 per cent of its 540 tonnes of rare earth magnets from China in FY24. With over 30 import requests still awaiting clearance from Chinese authorities, stakeholders remain cautious as they navigate an increasingly uncertain supply environment.
