Suzuki halts Swift production in Japan amid rare earth export curbs by China

Suzuki Motor Corporation has temporarily halted the production of its popular Swift subcompact car in Japan, reportedly due to the impact of China’s restrictions on rare earth exports, according to two sources familiar with the situation.

This makes Suzuki the first Japanese carmaker to be directly affected by the recent export controls.

The production suspension, which excludes the Swift Sport variant, was pre-scheduled from May 26 to June 6. While Suzuki officially cited a “shortage of components” as the reason, it did not disclose further details. A company spokesperson declined to comment on whether China’s export restrictions were behind the decision. The development was first reported by Nikkei Asia.

In April, China implemented sweeping export curbs on a wide range of rare earth elements and related magnetic materials. These minerals are essential for the manufacturing of electric motors, batteries, and various high-tech components used across industries, including automotive, aerospace, semiconductors, and defense.

The move has sent shockwaves through global supply chains, affecting not only Japanese manufacturers but also several European firms. Some auto parts suppliers in Europe have already paused production, and luxury carmaker Mercedes-Benz is reportedly exploring strategies to shield itself from potential rare earth shortages.