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Mint
a day ago
- Automotive
- Mint
Auto lobby Siam to revisit emission norms for small cars amid Maruti's protests
Indian car manufacturers are driving towards a compromise on recommendations to the government on fuel efficiency standards after Maruti Suzuki, the country's largest carmaker, demanded concessions on emission norms for small cars amid slowing sales. During a meeting of the industry lobby group Society of Indian Automobile Manufacturers (Siam) held on Friday in the national capital, a compromise was reached that the December submission of the industry sent to the government on the third edition of the so-called Corporate Average Fuel Efficiency (Cafe 3) norms will be retained, but with an additional proposal on possible relaxations for small cars as well as some light commercial vehicles, two people aware of the matter said on the condition of anonymity Representatives from member automakers like Maruti Suzuki India Ltd, Tata Motors Ltd and Mahindra and Mahindra Ltd, among others, agreed to refer the matter to the chief executive council of Siam, which will now deliberate on the technical details. While Maruti presented its case for a need to relax norms for small cars, other automakers provided a united opposition to the market leader at the meeting. After hard negotiations, the lobby group agreed to work on a proposal in the form of an addendum to the December submission, which will be incorporated if it gets accepted by all companies. Siam takes all its decisions by consensus. 'Now, all the members will study and come back with their suggestions on the addendum. There has been no clear timeline set, but the process should conclude soon," the first of the two persons cited earlier said. Queries sent to Siam remained unanswered till press time. Maruti Suzuki, which sells nearly every second car in India thanks to its portfolio of small and compact vehicles, has sought specific relaxation for cars weighing under a tonne in the upcoming Cafe 3 emission norms. This comes after all automakers, including Maruti, had sent the government a unanimous proposal in December for a uniform relaxation of emission norms for all carmakers. 'Siam would like to re-iterate that the proposed norms of BEE (Bureau of Energy Efficiency) are too aggressive and risk the sustainability of the Indian Auto Industry," the industry wrote in its December submission. Cafe 3 rules, set to take effect from April 2027, aim to slash the average carbon dioxide (CO2) emissions of new passenger vehicles. The proposed target is a fleet-wide average of 91.7 grams of CO2 per kilometre for a typical vehicle weighing around 1,170 kg. The proposed norms allow a comparatively higher CO2 emission target for heavier vehicles than lighter vehicles, which is being disputed by Maruti. Cafe 3 norms place a cap on the average carbon dioxide emissions of a carmaker's entire fleet, which is currently set at 113 grams per kilometre. Chairman of Maruti Suzuki RC Bhargava has publicly said the norms are punishing smaller cars and favouring bigger ones. Siam data shows that domestic sales in the mini segment (cars up to 3.6-metres in length) fell from 460,772 units in FY19 to 133,397 in FY25, a 71% decline. Maruti's sales in the mini segment fell from 368,990 units in FY19 to 125,770 units in FY25, a fall of 66%. Shailesh Chandra, president of Siam, and managing director of Tata Motors' passenger vehicles business, acknowledged during an industry event on 15 July that the view on December consensus of some players had changed. 'Of late, we have seen certain manufacturers have formed a different view (on Cafe-3)," Chandra said, adding that the December 2024 consensus was reached after months of deliberations among automakers. However, he struck a cautious note when asked whether the December consensus will be completely reworked. 'We will have to follow the process and basis that we can say if there is a change or not," he said. As per the two persons cited earlier, the industry has pushed for the retention of the consensus, which was reached after at least 6 months of negotiations among all the members of the automakers. After much deliberations, an agreement was reached on working on an addendum on relaxations as the government had asked for Siam's recommendations on the issue in June. The government has also asked its own agencies to study the issue. Mint reported on 10 July that the Bureau of Energy Efficiency, which is tasked with finalizing Cafe 3 and 4 norms, is studying the viability of easing these emission norms for small cars, the second person quoted above said.
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Business Standard
19-06-2025
- Business
- Business Standard
Maruti has magnet stock till July, looking for alternatives: Chairman
R C Bhargava says commercial battle helps neither Indian nor Chinese companies Surajeet Das Gupta Delhi Listen to This Article Maruti Suzuki has stocks of rare earth magnets imported from China that will last only until the end of July. The company will prepare a contingency plan, including exploring alternatives, if the ongoing issue remains unresolved by then. Asked about the impact of China not clearing imports of rare earth magnets — an item for which automotive companies must now seek a licence — Maruti Suzuki Chairman R C Bhargava said: 'We have stocks of rare earth magnets till July-end, and everyone, including us, is hopeful that China will resume supplies. We are also looking at alternatives, but there is
Entrepreneur
11-06-2025
- Automotive
- Entrepreneur
Amid Rare Earth Crisis, Maruti Suzuki Revises EV Plans
The auto major is aiming to produce around 8,000 units of the model by September, as against the previous plan of rolling out over 26,000 units during the same period You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Maruti Suzuki India has cut near-term production targets for its upcoming electric vehicle e-Vitara because of rare earths shortages, according to Reuters. The auto major is aiming to produce around 8,000 units of the model by September, as opposed to the earlier plan of rolling out over 26,000 units during the same period. The company however plans to make up for the production slump with a target to produce around 67,000 units of the model by FY26. The e-Vitara is crucial to Maruti's EV plans in the country marking its entry in the segment. Earlier this week, Maruti Suzuki India Chairman R C Bhargava said there will be no impact on the company's production due to the shortage of rare earth magnets as of now. Domestic carmakers are forced to take steps as the Chinese government has put restrictions since April 4 on the export of rare earth elements and related magnets. China controls over 90 percent of global processing capacity for the magnets, used across sectors. China's export curbs on some rare earth have shocked the global auto industry, as companies struggle to maintain supply chains. While some companies in the United States, Europe and Japan are seeing ease of supplies after securing licences from Beijing, India is still waiting for China's approval amid fears of shutting down production. The domestic automobile industry has sought government support in seeking approvals from the Chinese government for importing rare earth magnets used in various applications, including passenger cars.
New Straits Times
11-06-2025
- Automotive
- New Straits Times
India's Maruti Suzuki cuts near-term EV production amid rare earths crisis
NEW DELHI: Maruti Suzuki has cut near-term production targets for its maiden electric vehicle (EV) e-Vitara by two-thirds because of rare earths shortages, a document showed, in the latest sign of disruption to the auto industry from China's export curbs. 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 immediately respond to requests for comment on Tuesday. 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 financial 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.
Asahi Shimbun
10-06-2025
- Automotive
- Asahi Shimbun
India's Maruti Suzuki cuts near-term EV production amid rare earths crisis
A model poses next to Maruti Suzuki's first EV, the e Vitara SUV, on display at India's auto show in New Delhi, India, on Jan. 17. (REUTERS/File Photo) NEW DELHI--Maruti Suzuki has cut near-term production targets for its maiden electric vehicle e-Vitara by two-thirds because of rare earths shortages, a document showed, in the latest sign of disruption to the auto industry from China's export curbs. 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 licenses 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% of all car sales by 2030 from about 2.5% 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 on Tuesday. Maruti shares trading on the Indian stock exchange fell as much as 1.4% 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% from a recent peak of about 51% 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.
