JSW MG Motor to Invest USD 440 Million in India for EV and Hybrid Expansion
JSW MG Motor will invest up to USD 440 million to expand its Indian operations. The plan includes increasing plant capacity to 300,000 units and launching new hybrid and electric vehicles. Managing Director Anurag Mehrotra emphasized deep localisation to achieve profitability and target a 75% sales share from green energy vehicles.
Mumbai, February 16: JSW MG Motor, the joint venture between India's JSW Group and China's SAIC Motor, has announced a significant investment of up to USD 440 million to expand its manufacturing footprint and product portfolio in India. The capital infusion is aimed at scaling production capacity and deepening the company's commitment to New Energy Vehicles (NEVs), including hybrid and electric models.
The investment, estimated between INR 30 billion and INR 40 billion, will be utilised over the next few years to increase the annual production capacity of the company’s existing plant. Currently capable of producing 120,000 units, the facility is slated to reach a capacity of 300,000 units per annum. Managing Director Anurag Mehrotra confirmed that the expansion would be funded through internal accruals, debt, and equity options. MG Majestor SUV Unveiled in India: Know Price, Safety Features and Availability Details.
Strategic Shift Towards New Energy Vehicles
A central pillar of the company's growth strategy is a heavy reliance on NEVs. JSW MG Motor expects that hybrid and electric vehicles will constitute at least 75% of its total sales volume moving forward. This aligns with broader market projections, where NEVs are expected to account for 30% of India’s projected annual car sales of 6 million units by 2030, a significant jump from the current 5% market share.
To support this volume growth, the carmaker plans to launch three to four new vehicle models within the current year. By focusing on a diverse portfolio of green technologies, the company aims to establish a competitive advantage in a market where global players like Toyota and Suzuki are also committing billions to local manufacturing.
Roadmap to Profitability and Localisation
Despite rising sales—increasing from 61,000 units in 2024 to 70,500 units in 2025—the venture has faced financial hurdles. Reports for the financial year ending March 31, 2025, indicated that losses doubled to USD 121 million, with borrowings standing at USD 344 million. To counter these losses, the management is pivoting towards aggressive localisation of components.
By sourcing more parts within India rather than relying on imports, the company intends to reduce its exposure to foreign exchange fluctuations and high sea freight costs. This "deeper localisation" is viewed as a primary driver for turning the business profitable while navigating the complexities of the Indian automotive landscape. Hyundai Verna Facelift Interior Leaked; Compact Sedan Spotted Testing.
Navigating Geopolitical and Investment Challenges
The joint venture emerged after New Delhi implemented stricter investment norms for entities from neighbouring countries in 2020. While SAIC Motor previously struggled to expand independently due to these curbs, the partnership with the JSW Group, which holds a 35% stake, has provided a domestic cushion. Mehrotra noted a slight improvement in the bilateral business environment, citing increased receptivity regarding visas and logistics compared to previous years.
(The above story first appeared on LatestLY on Feb 16, 2026 10:59 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).