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News18
07-06-2025
- Automotive
- News18
Suzuki Halts Swift Production Amid China's Rare Earth Export Curbs: Report
Last Updated: Suzuki Motor has halted production of its Swift and the consequences are particularly stark for India, where Swift has been one of the best-selling cars for years In a major jolt to the global automobile industry, Suzuki Motor has temporarily halted production of its widely popular Swift hatchback, a flagship model in India, Japan, and several other global markets. The reason? A tightening grip from China on the supply of critical rare earth elements, which has begun disrupting key industrial sectors across the world. This marks the first time a Japanese automaker has been forced to suspend vehicle production as a direct consequence of China's rare earth export restrictions, industry sources told Reuters. Production of all Swift subcompact variants, except the Swift Sport, has been on hold since May 26. While Suzuki had initially hoped to resume assembly by June 6, supply issues persisted, delaying production restart plans. The company has now announced a tentative partial resumption from June 13, with full-scale operations expected to restart after June 16. Although Suzuki has officially cited 'component shortages" without elaborating, two insiders familiar with the matter confirmed to Reuters that the root cause lies in China's decision to curb exports of rare earths and related magnets that are critical materials used in electric motors, batteries, and automotive components. Rare earth materials such as neodymium and dysprosium are essential in manufacturing magnets for electric motors and various car components. China dominates the global supply, accounting for more than 70% of rare earth production. When China announced in April that it would suspend exports of several categories of rare earths and associated magnets, alarm bells rang across sectors, from automobiles to aerospace and semiconductors to military hardware. This rare earth chokehold is not just a threat on paper. Several European auto parts plants have already paused operations. Mercedes-Benz is reportedly exploring strategies to shield itself from the looming shortfall. The disruption is also expected to impact the electric vehicle (EV) market, as lithium-ion battery production is heavily dependent on these elements. The ripple effect may slow down EV rollouts and affect pricing globally, including in India, where the EV market is still emerging and vulnerable to global supply tremors. The consequences are particularly stark for India, where the Swift has been one of the best-selling compact cars for over a decade. Suzuki's decision could cause supply gaps in India's market as well, especially if disruptions continue longer than expected. Meanwhile, auto manufacturers in India are reportedly scouting for alternatives to lithium-ion batteries and rare earth-dependent components. Japan, already reeling under the pressure, is now reportedly planning to propose stronger cooperation with the United States on building a secure rare earth supply chain. According to Nikkei Business Daily, these proposals are expected to feature prominently in upcoming trade talks between the two allies. While Suzuki's temporary suspension may appear limited in scope, analysts say it underscores a far more worrying trend; China's dominance over rare earth supplies is becoming a geopolitical lever capable of stalling industries across continents.
Yomiuri Shimbun
06-06-2025
- Automotive
- Yomiuri Shimbun
Suzuki Motor Halted Swift Production Due to China's Rare Earth Curbs, Sources Say
Reuters Suzuki Swift is seen during the media day of the 41st Bangkok International Motor Show in Bangkok on July 14, 2020. TOKYO (Reuters) — Suzuki Motor's suspension of production of its flagship Swift subcompact is due to China's rare earth restrictions, two people familiar with the matter said, becoming the first Japanese automaker to be affected by the export curbs. The small car maker halted production of the Swift, excluding the Swift Sport version, from May 26 citing a shortage of components. Plans to resume output have been pushed back several times. Suzuki now expects a partial restart of production on June 13 with full resumption after June 16, as the 'prospect of parts supply is clearer' now, it said in a statement. The company declined to comment on the reason for the suspension. The sources declined to be identified as they were not authorized to speak on the matter.
NDTV
06-06-2025
- Automotive
- NDTV
Suzuki Swift Production Suspended In Japan As China Restricts Rare Earth Exports
Suzuki Motor had suspended production of its Swift car due to China's rare earth restrictions, two sources familiar with the matter said, becoming the first Japanese automaker to be affected by the export curb. The Japanese automaker had announced the planned production stoppage of the Swift subcompact, excluding the Swift Sport model, from May 26 through June 6, citing a shortage of components. Also Read: It did not elaborate beyond that, and a spokesperson said the company had no comment on the reason for the suspension, which was first reported by the Nikkei business daily. China's decision in April to suspend exports of a wide range of rare earths and related magnets has upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies, and military contractors around the world. Some European auto parts plants have also suspended output, and Mercedes-Benz is considering ways to protect against shortages of rare earths. (Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Indian Express
05-06-2025
- Automotive
- Indian Express
China rare earth mineral export ban impact: Suzuki suspends production of Swift cars
New restrictions on rare earth magnets and related materials imposed by China are starting to bite. Hamamatsu-based small car maker Suzuki Motor's plans to suspend the production of its flagship Swift compact hatchback due to China's rare earth restrictions, becoming the first Japanese automaker to be impacted by the export curbs. Suzuki halted production of the Swift, excluding the Swift Sport version, from May 26 citing a shortage of components, Reuters said in a report, adding that plans to resume output have been pushed back several times. Suzuki now expects a partial restart of production on June 13 with full resumption after June 16, as the 'prospect of parts supply is clearer' now, the carmaker said in a statement. The restrictions on rare earth magnets and related materials imposed by China kicked in from April 4, as a direct response to US imposing tariffs. This is beginning to impact automakers across the world, including electric vehicle manufacturers in India. Maruti, Suzuki's subsidiary in India, said earlier this week that there was no immediate impact of China's restrictions on rare earth magnets, and that the industry was in discussion with the government on the matter, which has been 'receptive' and 'supportive'. EV makers are particularly impacted by the Chinese restrictions, facing potential shortage of the critical components, which raises concerns of price hikes and production delays in a nascent, cost-sensitive segment of the auto market. The Indian car industry has initiated a conversation with the government to smoothen the process for procuring the rare earth magnets from Beijing. While the Chinese government has not imposed an outright ban on the export of rare earth magnets — a crucial element in making EVs — the process has been made very difficult causing protracted delays and posing shortage risks. Why are rare earth magnets important for EV makers Rare earth magnets, especially neodymium-iron-boron (NdFeB) magnets, are crucial for EV manufacturing, particularly in electric motors. They provide the strong magnetic fields needed for efficient and powerful electric motors, including traction motors that drive EVs. These magnets also play a major role in other EV components like power steering systems, wiper motors, and braking systems. China has a near monopoly over these rare earth magnets. A senior executive from the Indian car industry told The Indian Express that importers are now required to give their Chinese suppliers an undertaking that the rare earth magnets procured from that country would only be used in vehicles and not for defence or military applications. Over the past month or so, Indian carmakers are learnt to have used up inventories and there is likely to be a shortage going forward. Worrying still is a fresh insistence from Beijing that instead of sourcing magnets separately, carmakers buy entire electric motor assemblies from Chinese companies, or simply wait for the Chinese authorities to issue export permits to local rare earth magnet producers, as has been done, according to Reuters, for at least four magnet producers that include suppliers to Volkswagen — the first granted since Beijing restricted shipments last month. The German carmaker is said to have lobbied hard with Beijing to get this done. Sourcing entire motor assembly The problem with sourcing entire motors, as against just the magnets in them, is that carmakers would have to redesign their cars to accommodate the entire motor assembly, which comes in standard sizes. The ability to import magnets meant that manufacturers could calibrate the motor sizes to the design of their vehicles. While the availability of rare earth metals is not limited to China, it is in the efficient processing of these critical elements where Beijing has a substantial lead, which was once enjoyed by the US and Japan. In recent years, Japan has been able to restart some of its minerals' processing industry owing to government policies, but countries like the US and India are heavily dependent on Chinese exports of these metals. In response to the US administration's reciprocal tariff heat, China restricted exports of seven heavy rare earth metals including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium, as well as rare earth magnets. Earlier, it had also banned exports to the US of gallium, germanium, antimony, and other key high-tech materials with potential military applications. It is not clear if the recent thaw in US-China trade talks, including a pause, is going to affect these supplies. Anil Sasi is National Business Editor with the Indian Express and writes on business and finance issues. He has worked with The Hindu Business Line and Business Standard and is an alumnus of Delhi University. ... Read More
NDTV
05-06-2025
- Automotive
- NDTV
Suzuki Motor Halts Swift Production Amid China's Rare Earth Curb: Sources
Tokyo: Suzuki Motor had suspended production of its Swift car due to China's rare earth restrictions, two sources familiar with the matter said, becoming the first Japanese automaker to be affected by the export curb. The Japanese automaker had announced the planned production stoppage of the Swift subcompact, excluding the Swift Sport model, from May 26 through June 6 citing a shortage of components. It did not elaborate beyond that and a spokesperson said the company had no comment on the reason for the suspension, which was first reported by the Nikkei business daily. China's decision in April to suspend exports of a wide range of rare earths and related magnets has upended the supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. Some European auto parts plants have also suspended output and Mercedes-Benz is considering ways to protect against shortages of rare earths. (Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
