Stock Market News | EV Supply Chain Diversification | Rare-Earth Policy Shift | Maruti Suzuki E-Vitara
Shares of Maruti Suzuki advanced by more than 2 percent in morning trade on June 18, driven by renewed optimism surrounding India’s efforts to reduce its dependence on China for critical rare-earth magnets, key components for electric vehicles (EVs). The development aligns strategically with Maruti’s upcoming E-Vitara, the automaker’s first all-electric SUV, whose launch is now closely tied to rare-earth material availability.
The stock, trading at ₹12,839 on the NSE as of 10 AM, extended gains into the fourth consecutive session, and has climbed nearly 19 percent year-to-date, as market sentiment improved on easing concerns over material shortages that threatened to delay production.
Highlights
Maruti Suzuki shares up over 2%, trading at ₹12,839.
India evaluating Australia as rare-earth sourcing alternative.
China’s tightening export rules trigger diversification drive.
Launch of Maruti’s E-Vitara could be impacted by magnet shortages.
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EV Launch Plans at Risk as China Tightens Rare-Earth Exports; Australia Eyed as New Supply Source
India’s renewed focus on supply chain diversification stems from China’s dominant position, accounting for nearly 90% of global rare-earth magnet output. As China tightens its grip on exports—part of broader geopolitical and strategic shifts—Indian authorities have accelerated bilateral talks and policy alternatives. For automakers like Maruti Suzuki, the timing is critical. The E-Vitara, which is set to anchor the company’s EV portfolio, could see production cuts or delays unless a stable source of magnets is secured. Reports last week suggested that Maruti was already evaluating adjustments to its rollout targets due to material constraints.
Highlights
China controls 90% of global magnet production, increasing costs and risks.
Maruti reportedly considering delaying EV launch over supply bottlenecks.
Australia identified as potential rare-earth partner for India.
OEMs warn of production halts if supply remains disrupted.
Government Advances National Critical Minerals Strategy with Australia Talks, Circular Economy Push
According to sources from the Ministry of Commerce, the government is working to accelerate rare-earth mining under the National Critical Minerals Mission, with a twin strategy of boosting domestic output and promoting recycling through a circular economy. Minister Piyush Goyal, during his visit to Bern last week, confirmed that India is in active talks with Australia to create new strategic reserves and sourcing agreements. The Indian embassy in Beijing is also negotiating with Chinese officials to address the ongoing supply gridlock. These moves are seen as part of a larger trade and diplomacy push to secure long-term mineral security for India’s industrial and green energy needs.
Highlights
India advancing mining via National Critical Minerals Mission.
Focus on recycling and circular economy to reduce dependency.
Piyush Goyal confirms diplomatic talks with China and Australia.
Ministry aims to establish alternative rare-earth supply channels.
Auto Sector on Alert: Bajaj, TVS Also Flagging Rare-Earth Shortages; Prices May Surge
While Maruti Suzuki is at the forefront due to its large-scale EV launch, other OEMs are equally exposed. Bajaj Auto and TVS Motor Company have warned that production could halt as early as next month if access to rare-earth magnets continues to deteriorate. Analysts note that while Australia offers a secure and democratic supply partner, its production costs remain higher, given the lower scale of its current operations. As a result, even with diversified supply, EV input costs may rise, squeezing margins unless automakers are able to pass on these costs to consumers. The uncertainty has cast a shadow over India’s broader EV transition timeline.
Highlights
Bajaj, TVS also face production risks due to rare-earth shortages.
Australia supply more expensive; may impact EV affordability.
EV transition costs could rise unless mitigated by subsidies or scale.
OEMs urge policy clarity and raw material import support.
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