Suzuki has recently announced a temporary halt to the production of its Swift hatchback model in Japan due to disruptions in rare earth supplies amid export restrictions from China.

This is the first time a Japanese car manufacturer has been directly impacted by Beijing’s strategic mineral control policy, which may affect the launch of the 2025 Suzuki Swift in Vietnam.

According to Nikkei Asia and Reuters, Suzuki temporarily halted production of the Swift (excluding the Sport variant) at its Sagara plant in Shizuoka, Japan, starting May 26. While the Japanese automaker later announced it would resume operations from June 13 and fully restore the production line by June 16, the specific reason for the interruption was not disclosed, aside from a “parts shortage.”

However, international sources indicate that the underlying cause stems from the Chinese government’s move to impose export restrictions on seven types of rare earth minerals from April 2025. This is a retaliatory action against US tariff policies and has begun to affect global supply chains, particularly in the automotive and electronics industries. Suzuki is the first Japanese automaker to be directly impacted by this control measure.

In Vietnam, the Suzuki Swift used to be one of the favored hatchback models in the B-segment due to its compact design and fuel efficiency. However, the car has been absent from the market for several months, amid speculations that the company is discontinuing the current generation to prepare for the next one.

In June 2025, Suzuki Vietnam teased the return of the Swift on its official fanpage, with a status reading: “The next iconic generation of Suzuki is gradually being unveiled.” The image of the car shrouded in darkness, revealing only the LED headlights and distinctive logo, led many fans to believe that this is indeed the new Swift.

Information from several dealerships in Hanoi confirms that the 2025 Swift will be launched in mid-June and deliveries will commence in July. Notably, the new version will feature only one configuration, employing a hybrid powertrain, and will be directly imported from Japan.

However, given the production disruptions in Japan, it is likely that the supply for the Vietnamese market will be affected. If the restoration of production takes longer than planned, consumers may have to wait longer, especially during the initial sales phase.

The story of the Suzuki Swift clearly illustrates the challenges faced by automotive manufacturers in an increasingly complex geopolitical landscape. With China controlling over 80% of the global rare earth supply chain – a vital material for electric motors, permanent magnets, and hybrid batteries – the automotive industry is becoming increasingly “vulnerable” to policy shifts.

The disruption in parts supply from China is putting not only the US and Europe but also Asian manufacturers in a difficult position. Even for a popular model like the Swift, the shortage of rare earth minerals can bring the entire production line to a halt.

Moreover, this incident raises significant questions about the stability of global supply chains, especially for automakers heavily reliant on imports from China, a challenge not unique to Suzuki but faced by many other brands as well.

TH (Tuoitrethudo)

You may also like

Suzuki Enhances Incentives for XL7 and Jimny to Clear Stock

Stepping into June 2025, Suzuki Vietnam is proud to announce its ongoing promotional offers for its two flagship models, the XL7 Hybrid and the beloved Jimny.

Suzuki Swift Halts Production in Japan: Vietnamese Buyers May Face Lengthy Waits

Suzuki has recently made headlines by halting the production of their beloved hatchback, the Swift, in Japan. This unexpected development comes amidst disruptions in the supply of rare earth materials due to export restrictions from China.

“VinFast Expands its Domestic Supplier Network”

With a vision to foster growth and contribute to a robust and united Vietnamese business community, VinFast is set to host a conference titled “Enhancing Localization and Developing Suppliers for VinFast” on June 9th in Hanoi. This event presents an array of attractive opportunities and commitments, all geared towards strengthening the Vietnamese automotive industry.

VinFast Expands Domestic Supplier Network, Guaranteeing Output Procurement.

VinFast is set to host a groundbreaking conference, “Enhancing Localization and Developing Suppliers for VinFast,” on June 9th in Hanoi. This event presents a unique opportunity for Vietnamese businesses to unite and strengthen the country’s automotive industry. With VinFast’s attractive commitments and initiatives, this conference aims to foster a robust and united community of Vietnamese enterprises, working together to drive the nation’s automotive sector forward.

Toyota “Reaches Out” to Nissan After Nissan-Honda Merger Talks Collapse

In a surprising turn of events, Toyota has reportedly approached Nissan to discuss potential strategic collaboration, following the collapse of the Nissan-Honda merger plans in February 2025.