India's Maruti Suzuki cuts near-term EV production amid rare earths crisis
India's top carmaker, which said on Monday it had not seen any impact yet from the supply crisis, now plans to make about 8,200 e-Vitaras between April and September, versus an original goal of 26,500, according to a company document seen by Reuters.
It cited 'supply constraints' in rare earth materials that are vital in making magnets and other components across a range of hi-tech industries.
Maruti still plans to meet its output target of 67,000 EVs for the year ending March 2026 by ramping up production in subsequent months, the document said.
China's curbs on some rare earth exports have rocked the global auto industry, with companies warning of severe supply chain disruptions. While some companies in the United States, Europe and Japan are seeing supplies easing as they secure licences from Beijing, India is still waiting for China's approval amid fears of production stoppages.
Launched amid much fanfare at India's car show in January, the e-Vitara is crucial to Maruti's EV push in the country, marking its entry in a segment that Prime Minister Narendra Modi's government wants to grow to 30 per cent of all car sales by 2030 from about 2.5 per cent last year.
The setback could also hurt 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.
Maruti told reporters last week the rare earths issue had no 'material impact' on the e-Vitara's launch timeline. Chair RC Bhargava said there was 'no impact at the moment' on production, local media reported on Monday.
Maruti and Suzuki did not respond to requests for comment yesterday.
Maruti shares trading on the Indian stock exchange fell as much as 1.4 per cent to the day's low after the news.
Maruti is yet to open bookings for the e-Vitara with some analysts warning it is already late to launch EVs in the world's third-largest car market where Tesla is also expected to begin sales this year.
Under its previous plan 'A', Maruti was to produce 26,512 e-Vitaras between April and September — the first half of the fiscal year. Under the revised plan 'B', it will manufacture 8,221, the document showed, indicating a two-thirds cut in its production schedule.
However, in the second half of the financial year — between October and March 2026 — Maruti plans to ramp up production to 58,728 e-Vitaras, or about 440 per day at its peak, versus a previous target of 40,437 for those six months under plan A.
Two supply chain sources confirmed Maruti's plan to scale back e-Vitara production because of rare earth magnet shortages but were not privy to the exact numbers.
The rare earths crisis comes as Maruti is already grappling to recover market share lost to Tata Motors and Mahindra & Mahindra's feature-rich SUVs. These companies also lead India's EV sales. Maruti's share of India's passenger vehicle market is down to 41 per cent from a recent peak of about 51 per cent in March 2020.
Suzuki has trimmed its sales target for India to 2.5 million vehicles by March 2031 from 3 million previously, and scaled back its lineup of EV launches to just four, instead of the six planned before, as competition in the South Asian nation intensifies. — Reuters
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
Asian stocks cheer US-Vietnam trade deal; currencies steady
Most Asian stock markets rose on Thursday, buoyed by the U.S.-Vietnam trade deal seen as a positive signal for the region ahead of the July 9 tariff deadline, while currencies held steady as traders awaited key U.S. developments. U.S. President Donald Trump said he had sealed a trade deal with Vietnam, under which it would now be hit with a 20% tariff on exports, sharply down from 46% planned earlier. Vietnamese equities rose 0.6% to their highest level since April 2022, while the dong dropped 0.3% to hit a record low of 26,229 per U.S. dollar. Analysts at DBS noted the deal could mitigate downside risks to Vietnam's economic growth but added it "may not prevent a slowdown in the coming quarters." The U.S.-Vietnam deal lifted sentiment across most Asian equities on hopes other countries will strike similar agreements ahead of the July 9 tariff deadline. The MSCI EM-Asia index advanced 0.2% and touched a three-and-a-half-year high earlier in the day. Philippine stocks climbed 1.1% to log their highest since May 15. The country faces an 18% tariff under Trump's plan. Shares in Taiwan and Indonesia climbed 0.8% and 0.3%, respectively. South Korean stocks rose 1% after President Lee Jae Myung said he was working to secure a "mutually beneficial and sustainable" outcome from trade talks with the U.S. "Today's broad-based rally reflects multiple catalysts converging - Vietnam's 20% tariff deal setting a precedent, India pushing hard for its own agreement and the U.S.-China trade restrictions being rolled back on ethane," said Christopher Forbes, head of Asia, CMC Markets. The dollar index edged lower as investors awaited the U.S. Labor Department's June jobs report, due later in the day, after data earlier this week showed private payrolls fell for the first time in over two years. Trump's massive tax and spending bill, which was pending a possible final approval by the House of Representatives, was also in focus. The bill is expected to add $3.3 trillion to the national debt, slash taxes and reduce social safety net programs. While most Asian currencies traded sideways, Taiwan's dollar strengthened 0.5% to touch its highest level since early April 2022. Exporters' demand to sell the greenback and steady inflows into domestic equities this week sustained the demand for the Taiwan dollar, OCBC forex strategist Christopher Wong said. The Philippine peso and Indonesia's rupiah were up 0.1%. HIGHLIGHTS: ** Saudi Arabia, Indonesia sign several deals worth around $27 billion, state news agency says ** US paves way to resume ethane exports to China amid trade truce - Reuters
Malay Mail
2 hours ago
- Malay Mail
New Home Sales and Returning Investors Help Drive Hong Kong Residential Market Transactions
Overall Office Leasing Activity Picks Up, but Grade A Office and Prime Retail High-Street Rents Remain Under Pressure Homebuyers and investors were both active in the Hong Kong residential market in Q2 2025, incentivized by a weakening HIBOR and rapid launches of new projects by developers at attractive prices. The total residential transaction number for the Q2 period is expected to rise by 30% q-o-q to reach 15,900 units. The Grade A office new-lease transaction area reached 1.2 million sf, the highest level since the COVID-19 pandemic period. However, the overall Grade A office rental level continued to decline, falling 1% q-o-q, resulting in an overall 3.4% drop for the 1H 2025 period. Retail market sale performance has yet to demonstrate significant improvement despite an increase in visitor arrivals. High street vacancy rates generally trended upwards across core districts in Q2, weighing on overall rental levels. Nevertheless, a notable number of new leasing transactions were recorded, reflecting an ongoing "tenant reshuffling" in the market. Grade A office leasing market: New lease area reached 1.2 million sf, the highest level since the COVID-19 period Chart 1: Rents of Grade A offices in Hong Kong Retail leasing market: Retail sales continued to contract despite improving tourist arrivals, while high street rents remained under pressure Chart 2: High street retail rents in prime districts in Hong Kong Residential market: L ower HIBOR and active new launches drive transactions; home prices stabilize in Q 2 Chart 3: Number of residential sale & purchase agreements HONG KONG SAR - Media OutReach Newswire - 3 July 2025 -Global real estate services firm Cushman & Wakefield today held itspress conference. The one-month Hong Kong Interbank Offered Rate (HIBOR) has been gradually softening since May, resulting in lower mortgage rates. Coupled with developers actively launching new residential projects at competitive prices, momentum in the primary residential market remained strong in the period. Improved rental yields also encouraged investors to re-enter the housing market, supporting monthly transaction volumes that exceeded 5,000 cases in the Grade A office sector, net absorption remained positive in Q2, with Hong Kong Island showing greater resilience. However, high availability and an abundant future supply pipeline continued to weigh on rental performance. In the retail sector, despite a steady rise in visitor arrivals, retail sales have yet to show notable improvement. Vacancy pressures persisted, leading to a general downward trend of high street retail rents during Hong Kong Grade A office market witnessed accelerated leasing momentum in Q2 2025, underpinned by relocation and expansion activities from the banking & finance and insurance sectors, The new leased transaction area for Q2 2025 reached 1.2 million sf, the highest quarterly level since Q3 2019. Several big-ticket deals were recorded, including Jane Street's pre-commitment of more than 207,000 sf at Site 3 at the Central Harbourfront project. The overall office availability rate remained largely stable at 19.3% in Q2, while quarterly positive net absorption slowed, dropping almost 50% to record 71,400 sf. With the new supply pipeline remaining abundant, the overall Grade A office rental level continued to trend down, dropping 1% q-o-q in Q2, contributing to an overall 3.4% drop for the 1H 2025 "In the 1H 2025 period, the Hong Kong Stock Exchange is expected to rank first globally in terms of funds raised through the Initial Public Offering (IPO) market — reclaiming the top spot for the first time since 2019. With more Chinese mainland stocks expected in the pipeline, this should help support office market sentiment and stimulate downstream leasing demand, particularly in the banking & finance and professional services sectors. Despite the improving market sentiment, an ample new supply pipeline and high availability may continue to weigh on rental performance in 2H 2025, and we forecast the overall office rental to decline by 7%–9% throughout 2025."John Siu added, "According to Cushman & Wakefield's new What Occupiers Want 2025 report, the top three priorities shaping occupiers' leasing strategies are cost control, talent retention, and operational excellence. While occupiers remain cost-cautious, they increasingly recognize the importance of a healthy and engaging workplace in attracting and retaining talent. Against this backdrop, other than offering rental incentives, we encourage landlords to collaborate closely with occupiers to create unique and value-driven work environments, so as to stand out in today's highly competitive office market."For the January to May 2025 period, Hong Kong recorded more than 20 million visitor arrivals, growing 12% y-o-y. We believe this growth is supported by the opening of the Kai Tak Sports Park and the recent hosting of a range of mega-events at the venue. However, the rise in visitor numbers has not yet translated into stronger retail sales. From January to May 2025, total retail sales in Hong Kong amounted to HK$ 155.1 billion, reflecting a y-o-y decline of 4.0%. Visitor spending has become more cautious, with a growing preference for cultural experiences and value-for-money retail offerings. As a result, traditionally popular high-end retail categories have been most affected. Sales in the Jewellery & Watches and Apparel & Accessories sectors declined by 8.8% and 5.7% y-o-y, respectively. The Medicines & Cosmetics and Food, Alcoholic Beverages & Tobacco sectors recorded modest growth, rising by 3.4% and 2.7% y-o-y, rates generally trended upwards across core retail districts in Q2 2025. The vacancy rate in Causeway Bay showed the most notable increase to climb to 13.2%, from 5.3% last quarter. Vacancy rates in Mongkok and Central rose slightly q-o-q, to 9.5% and 8.6%, respectively, while Tsimshatsui remained stable at 9.4%. Retail leasing activity was most active in Mongkok in the Q2 period, supported by the district's relatively attractive rental levels and stable tourist street retail rents generally fell in Q2, in response to lifted vacancy pressure. Rents in Causeway Bay fell by 3.6% q-o-q, followed by Tsimshatsui and Mongkok at 3.4% and 1.7% q-o-q, respectively. Rents in Central rose slightly at 0.2% q-o-q, supported by resilient local demand. In the F&B sector, rents across districts recorded a mild decline on a q-o-q basis, within a 1% "The Hong Kong retail market is experiencing a reshuffling of tenants. Retailers and F&B operators that are promoting local culture, offering unique experiences, and offering high-quality services and products, will likely be favored by tourists and will be able to prosper in the market. In contrast, some traditional retailers will be forced out of the market due to their failure to adapt to the shifted consumption patterns. Nevertheless, leasing activity in core districts has remained active. The current attractive rental level is lowering entry costs for new market players, while benefitting more mass-market retailers aiming to enter high-street areas. Looking ahead, with the opening of the Kai Tak Stadium, we expect that the government will continue to promote mega-events and world-class concerts, in turn drawing more international visitors and tourism spending. We expect high street retail rents and F&B rents to remain largely stable in the 2H 2025 period, and to mildly correct in the range of -1% to -3% through 2025."Overall sentiment in Hong Kong's residential market continued to improve in Q2 2025. The decline in the HIBOR during the quarter, which remained at relatively low levels, helped reduce mortgage and entry costs, creating favorable conditions for homebuyers. At the same time, developers actively launched new projects with attractive pricing strategies, fueling strong activity in the primary market and sustaining high overall transaction volumes. According to Cushman & Wakefield estimates, the total number of residential sales and purchase agreements in Q2 is expected to reach approximately 15,900, representing a 30% q-o-q increase, reflecting the continued market purchasing "The positive market response to new launches between March and May supported monthly transaction volumes exceeding 5,000 units, indicating resilient end-user demand and contributing to home price stabilization. Based on data from the Rating and Valuation Department, the overall residential price index edged up by 0.5% between April and May, narrowing the first five months' decline to 0.9%. On the leasing front, the growing number of expats and non-local students, coupled with the traditional leasing peak season in May and June, drove the private residential rental index up by 0.67% m-o-m in May, resulting in a 1.4% increase over the first five months of 2025. Looking ahead, while global uncertainties persist and the sustainability of low HIBOR remains uncertain, a potential interest rate cut by the U.S. later this year could further support lower HIBOR levels, providing a positive narrative for the housing market. We maintain our earlier forecast that overall transaction volume will be similar to last year, with full-year home price fluctuations expected to remain within a ±3% range."concluded, "According to our tracking of popular housing estates, all market segments showed some improvement in Q2. Notably, City One Shatin, representing the mass market, recorded a 2.3% q-o-q sale price increase. Taikoo Shing, representing the mid-market, saw a modest 0.4% q-o-q rise, while Bel-Air, representing the luxury segment, saw sale prices decline narrowly by 2.5% q-o-q. Recently, some banks have relaunched mortgage cash rebate programs, effectively lowering the entry threshold and stimulating buying interest among prospective purchasers. Over the past one to two months, we observed an approximately 5% increase in mortgage inquiries compared to April. Among the newly signed provisional sale and purchase agreements, 60%–70% of transaction prices were 3% to 5% higher than their online valuations. These changes were most concentrated in properties priced at around the HK$10 million mark, and particularly in the HK$3– 4 million range, indicating a recovery in demand for small- to mid-sized units."Please click here to download 1: (From left to right), Senior Director, Valuation and Consultancy Services, Hong Kong, Cushman & Wakefield;, Managing Director, Head of Project and Occupier Services, Hong Kong, Cushman & Wakefield and, Executive Director, Head of Research, Hong Kong, Cushman & #Cushman&Wakefield The issuer is solely responsible for the content of this announcement. About Cushman & Wakefield Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In Greater China, a network of 23 offices serves local markets across the region. In 2024, the firm reported revenue of $9.4 billion across its core services of Valuation, Consulting, Project & Development Services, Capital Markets, Project & Occupier Services, Industrial & Logistics, Retail, and others. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit or follow us on LinkedIn (
Free Malaysia Today
2 hours ago
- Free Malaysia Today
Japanese stocks saw strong foreign appetite in the week to June 28
The Nikkei surged 4.55% last week, the most since September 2024. (AP pic) TOKYO : Foreigners turned net buyers of Japanese stocks in the week to June 28 on easing Mideast hostilities and investor optimism over a rally in technology stocks. They bought a net ¥651.3 billion (US$4.53 billion) worth of Japanese stocks during the week, the highest in six weeks, marking their 12th week of buying out of the past 13, data from Japan's finance ministry showed. The Nikkei surged 4.55% last week, the most since September 2024, as a renewed global optimism over artificial intelligence boosted chip-related stocks such as Tokyo Electron and Advantest by 14.72% and 7.67%, respectively, and SoftBank Group, an AI investor, by 12.26%. Foreign inflows, including last week's net purchase in domestic equities, totaled about ¥7.46 trillion for the three months ending June 30, the largest figure for a quarter since June 2023. Long-term Japanese bonds also saw a robust ¥1.05 billion in net foreign inflows last week. Foreigners, however, ditched a net ¥633.9 billion in short-term bills. Japanese investors, meanwhile, bought ¥190.6 billion worth of foreign stocks, ending their six-week-long selling streak. They also added a net ¥182.8 billion worth of foreign long-term bills in a third successive weekly net purchase.
