Suzuki Motor Corporation has suspended production of its best-selling Swift compact car due to a sudden shortage of rare earth magnets—critical components used in modern car systems. The production halt began on May 26, affecting all variants except the Swift Sport. The decision makes Suzuki the first major Japanese automaker to publicly acknowledge disruption due to China’s recent export restrictions on rare earth materials.
These restrictions, in place since April 4, were introduced by China’s Ministry of Commerce as a countermeasure to U.S. tariffs. The rules now require exporters to obtain special licenses and buyers to provide detailed end-use certificates, specifically declaring that magnets will not be used for military purposes. The result? Massive shipment delays of 4–6 weeks, disrupting global supply chains.
Suzuki’s statement said that while parts availability remains tight, production is expected to partially resume by June 13 and fully by June 16. But the damage is already evident. Reuters reports a growing backlog and dealer concerns, especially in Southeast Asia and Europe, where the Swift is in high demand.
India’s EV sector, already reliant on Chinese components, is beginning to feel the heat. Maruti Suzuki stated that while there is no immediate impact, the industry is in talks with the Indian government to streamline imports. What makes the situation more difficult is China’s suggestion that automakers buy entire electric motors, not just magnets—forcing costly redesigns.
China has defended its policies as “common international practice,” but analysts believe it is leveraging its near-monopoly over rare earth processing to shift power back into its own industrial sector.
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While rare earths exist outside China, it still dominates 90% of global magnet processing. With the U.S. and India lacking domestic capabilities, industries dependent on EVs and high-tech manufacturing are under increasing pressure.
Suzuki’s halt is just the beginning. The rare earth race is now a geopolitical chess game—and global automakers are caught in the middle.
