Suzuki Motor has temporarily suspended production of its popular Swift subcompact car (excluding the Swift Sport variant) in Japan due to a critical parts shortage linked to China’s restrictions on rare earth exports, according to sources familiar with the matter. The halt, which began on May 26, marks the first time a Japanese automaker has been directly impacted by Beijing’s recent export curbs.
Initially planned to last until June 6, the stoppage has been extended multiple times. Suzuki now expects a partial restart on June 13, with full production resuming after June 16, as the company stated the “prospect of parts supply is clearer.” However, it has not officially confirmed the reason for the delay. Sources, who requested anonymity due to the sensitivity of the issue, told Reuters that slowed export license approvals from China are to blame.
China’s April decision to tighten rare earth exports has sent shockwaves through global supply chains, affecting automakers, aerospace firms, and defense contractors. Rare earths are vital for electric vehicle motors, sensors, and other high-tech components. With China controlling 70% of global rare earth production and 90% of magnet manufacturing, the slowdown has forced companies like Mercedes-Benz to explore stockpiling strategies, while European parts suppliers have already faced production halts.
In India, industry bodies SIAM and ACMA are reportedly preparing to send a delegation to China to expedite export clearances and prevent further disruptions. Meanwhile, Germany’s BMW and Mercedes are working closely with suppliers to mitigate risks, though neither sources rare earths directly.
These minerals—including neodymium, dysprosium, and terbium—are essential for high-performance magnets in EVs, catalytic converters in traditional cars, and even display screens. Their scarcity threatens both electric and combustion-engine vehicle production.
Suzuki’s suspension highlights the fragility of global auto supply chains amid geopolitical tensions. As the industry braces for more turbulence, governments and manufacturers are racing to secure alternatives.
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