Rare earth magnet supply chain risk
Rare earth magnets used in motors and sensors pose a supply challenge; management acknowledged it as a work in progress but did not quantify impact.
MARUTI / Q1-FY26 / risks
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Maruti · Material risks, their source context, and severity in the latest available quarter.
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Material risks this quarter
high
Margin pressure from new plant overheads
The Karkoda plant (250k capacity) started production in Q4 FY25, causing ~30 bps margin hit due to low utilization; expected to normalize as volumes scale.
Domestic demand weakness persists
Industry wholesale declined 1.4% YoY; Maruti's domestic sales fell 4.5% YoY, with first-time buyer affordability remaining a key drag.
CAFE norm uncertainty
Final CAFE regulations expected in 1-2 months; any unfavorable outcome could impact powertrain strategy and EV adoption costs.