Maruti Suzuki Shares Climb 2% on Australia Rare-Earth Sourcing Buzz

Ltd.'s share price rose 2% today on the NSE, driven by reports of Australia emerging as a potential alternative source for rare-earth magnets, critical for electric vehicle (EV) production. This development is significant for India’s largest automaker as it gears up to launch its first EV, the e-Vitara, amidst global supply chain concerns triggered by China’s tightened export restrictions on rare-earth elements since April 2024. Last week, reports indicated Maruti was considering delaying the e-Vitara launch and slashing production targets from 26,500 to 8,200 units by September 2025 due to magnet shortages. However, optimism around Australia’s potential to fill the supply gap, coupled with India’s National Critical Minerals Mission to boost domestic output and recycling, has buoyed investor sentiment. Other automakers, including Bajaj Auto and TVS Motor, have also flagged risks of production halts due to the ongoing crisis.