All Options Are On The Table To Address The Shortage Of Rare-Earth Magnets: Maruti Suzuki

Summary

Maruti Suzuki is addressing the challenges posed by the rare earth magnet crisis, assuring that production of the EVitara remains unaffected despite global supply chain uncertainties. The company also celebrates its success in securing five-star safety ratings for the Desire and four-star for the Baleno from Bharat NCAP, showcasing their commitment to customer safety. Additionally, Maruti is on track to equip all models with six airbags, with 97% of sales expected to include them by July. The automaker is actively exploring alternative solutions to manage the supply of rare earth magnets and ensure continuity in production.

Takeaways

• 😀 Hyundai plans to source rare earth magnets from its parent company to deal with supply issues.
• 😀 Maruti Suzuki has confirmed that the production of the eVitara is not affected by the rare earth magnet crisis.
• 😀 Maruti Suzuki's eVitara launch schedule remains unchanged despite the ongoing rare earth magnet issue.
• 😀 Maruti Suzuki received a 5-star Bharat NCAP rating for the Desire model, and a 4-star rating for the Baleno.
• 😀 Maruti Suzuki is the first company to receive Bharat NCAP ratings for a sedan and a hatchback, setting it apart from other automakers focused on SUVs.
• 😀 Maruti Suzuki has spent between 100 to 200 crores on enhancing the safety of its vehicles.
• 😀 Maruti Suzuki plans to manage the rare earth magnet issue by tapping into multiple solutions and ensuring continuity in production.
• 😀 Maruti Suzuki’s current rare earth magnet inventory is sufficient till July, but there is uncertainty beyond that.
• 😀 The company is exploring sourcing rare earth magnets from India and other countries as alternatives to Chinese imports.
• 😀 By July, 97% of Maruti's sales volume will be equipped with six airbags, with plans for 100% coverage across all models by the end of the year.

Q & A

What is Maruti Suzuki's stance on the impact of the rare earth magnet crisis on its operations?

Maruti Suzuki has stated that there is no significant disruption in its operations due to the rare earth magnet crisis. The company is monitoring the situation closely and has multiple solutions in place to ensure business continuity.

How is Maruti Suzuki handling the rare earth magnet supply issue?

The company is not only managing its current inventory of rare earth magnets but also exploring alternative sourcing options, including from within India and other countries. They are in regular discussions with the government and industry stakeholders.

What was the impact of the rare earth magnet shortage on Maruti Suzuki's EVitara production forecast?

While the rare earth magnet crisis led to a reduction in the production forecast for the EVitara, Maruti Suzuki reassured that there is no material impact on production or launch timings as of now.

What is the Bharat NCAP rating received by Maruti Suzuki's Desire and Baleno models?

The Desire model received a 5-star Bharat NCAP safety rating, while the Baleno model received a 4-star rating. These high ratings reflect Maruti Suzuki's commitment to customer safety.

How much investment did Maruti Suzuki make in car safety improvements?

Maruti Suzuki invested between 100 to 200 crores in engineering and development to improve the safety features of its cars, ensuring high safety standards for its customers.

How does Maruti Suzuki plan to launch the EVitara globally?

The launch of the EVitara will be staggered across different global markets, including India, Europe, and Japan, as it is a global model. The company aims to release the car within the first half of the year.

What are the options being evaluated by Maruti Suzuki to manage the rare earth magnet shortage?

Maruti Suzuki is evaluating multiple solutions, including sourcing rare earth magnets from alternate countries, potentially importing assemblies from China, and exploring domestic availability within India.

What is Maruti Suzuki's strategy for ensuring the availability of six airbags across its models?

Maruti Suzuki is on track to install six airbags as standard across all variants of its models. By July 2025, 97% of its sales will include this safety feature, with full implementation expected soon after.

How does the rare earth magnet issue affect Maruti Suzuki's production of ICE models?

While the company has not yet made any public changes to its production plans for ICE (internal combustion engine) models, all options remain on the table to prioritize certain models if necessary due to the rare earth magnet shortage.

What measures are being taken by the Indian government and industry to resolve the rare earth magnet crisis?

The government and industry are in regular discussions to find solutions, including exploring alternate sources of rare earth materials, and the possibility of importing assemblies from China. Delegations are also planning visits to China to seek a breakthrough.