Maruti Suzuki India Ltd’s EV debut got off to a poor start with production falling short of target as its domestic launch got delayed, a rare-earth magnet crisis hit manufacturers and global electric vehicle sales growth slowed.
The country’s largest car manufacturer exported 25,000 EVs and registered 1,400 units domestically in FY26, missing a target set by chairman RC Bhargava at the start of the fiscal year to produce 70,000 units of its first electric vehicle, mostly for overseas markets. Although Maruti hasn’t disclosed EV production numbers, they are typically a little higher than sales volumes.
“There were some initial delays but now the ramp-up is progressing steadily,” Rahul Bharti, senior executive officer-corporate affairs at Maruti Suzuki, told Mint in an emailed response.
According to experts, Maruti’s EV manufacturing plan faced setbacks for reasons ranging from a delay in the launch to production-related issues.
“The lower-than-anticipated production came on the back of rare earth magnet issues which affected production schedules of automakers. Moreover, there has been a global slowdown in EVs, which would have affected their numbers. The launch in the domestic market was also delayed throughout last year,” said Gaurav Vangaal, associate director – light vehicle production at S&P Global.
Maruti Suzuki’s parent company, Suzuki Motor Corporation, has made India a production hub for global EV production to cater to both domestic and international demand. The company started domestic sales of its EVs only in February, five months after the September deadline that Bhargava had set during a 25 April media briefing.
While Maruti suffered delays, rivals Tata Motors, Mahindra and Mahindra and JSW MG Motor scaled up domestic sales in FY26. Tata’s EV sales grew 36% to 78,240, JSW MG Motor’s sales climbed 73% to 53,000 EVs, and Mahindra and Mahindra surged almost fivefold to 40,240 units.
GST benefit
After the goods and services tax for petrol and diesel vehicles was cut in September last year, triggering demand in the segment for automakers, Maruti limited production of its EV model to 2,000 a month.
“We are calibrating because we have ensured that no model should have a longer waiting period,” Partho Banerjee, senior executive officer – marketing and sales at Maruti Suzuki, said at a press conference in February.
Maruti’s ramp-up of EVs in the domestic market is expected in FY27 when a new production line of 250,000 units is expected to start operating in July. The company is also looking to tap new export markets even as the West Asia war complicates shipping routes.
About 198,000 electric cars were sold in India in FY26, a growth of 84% over the previous fiscal. However, in terms of exports, Maruti’s eVitara was the only model that recorded major sales volumes overseas. The focus on EV exports was part of the company's strategy in the previous fiscal year as it felt the scope for growth in EVs in the domestic market was still limited.
“The same thing happened with CNG also when we started,” Banerjee told Mint earlier in an interview, explaining how sales of CNG vehicles went up after people became confident about the availability of gas.
Global carmakers including Ford Motor Company, General Motors, Honda Motor Corporation, and Stellantis have written off EV investments of more than $60 billion in the past six months due to a slower-than-expected growth rate of EV sales. Strong competition from Chinese companies BYD, SAIC and Leapmotor has also affected global brands in markets including Europe.