JSW MG Motor India to invest ₹3,000–4,000 crore, scale up capacity to 3 lakh units

JSW MG Motor India is gearing up for its next phase of expansion with a planned investment of ₹3,000–4,000 crore and a roadmap to nearly triple annual production capacity to 3 lakh units per annum.

A senior official of the company revealed that the capital infusion will fund new product launches, expand manufacturing capability, and deepen localisation as the company sharpens its focus on electric and hybrid vehicles in India’s intensely competitive passenger vehicle (PV) market.

In an interaction with Fortune India on the sidelines of the MG Majestor showcase, the company’s Managing Director Anurag Mehrotra stated that the expansion would be financed through a calibrated mix of internal accruals, debt, and equity.

“For this year, internal accruals are sufficient. Beyond that, we will evaluate various funding options,” he said.

He emphasised strong coordination between shareholders JSW Group and SAIC Motor, describing the engagement between the two as unusually proactive. “The frequency and depth of dialogue between the partners allow faster decision-making,” Mehrotra told Fortune India.

Capacity expansion and deepening of localisation

The company’s Halol plant in Gujarat, which currently has a capacity of around 1.2 lakh units annually, will be scaled up in phases to 3 lakh units. The ramp-up coincides with four launches this year—a plug-in hybrid, a new electric vehicle, the Majestor SUV, and another model yet to be disclosed. Over 2026–27, the pipeline could expand to nearly six new vehicles, most of them electrified.

With sales rising and ambitions to grow faster than the broader industry, the company is aiming to balance volume expansion with improved financial discipline.

According to Mehrotra, improving margins will hinge on deeper localisation. “Local sourcing (of auto components) is one of our biggest unlocks for profitability. It lowers foreign exchange exposure and reduces dependence on volatile sea freight,” he said, pointing to sharp swings in global shipping costs over the past year as a reminder of supply chain risks.

JSW MG Motor India operates as a joint venture, with SAIC holding 49%, JSW Group 35%, and Indian stakeholders—including financial institutions, dealers, and employees—holding 16%. On India-China business ties, Mehrotra affirmed that engagement has improved compared to two years ago, though prudent risk management remains essential.

New Energy Vehicles at the core

New Energy Vehicles (NEVs)—MG’s term for EVs and hybrids—will form the backbone of its portfolio. According to Mehrotra, “Seventy-five to eighty percent of the centre of gravity of our business will remain on new energy vehicles.”

He argued that EV adoption is more a function of “product supply” than demand hesitation. “The unlock is largely supply-side driven. As more credible products enter more segments, the customer base expands,” he noted.

While EV penetration moderated after GST changes narrowed the upfront price gap with petrol and diesel cars, Mehrotra maintained that long-term ownership economics remain compelling, and adoption is spreading beyond metros into smaller cities.

Majestor signals premium SUV play

The recently showcased MG Majestor marks the company's entry into the D+ full-size SUV segment, which sees annual volumes of roughly 35,000–40,000 units. Slated for launch in April, the 4x4 SUV will compete with models such as the Toyota Fortuner, Jeep Meridian, Skoda Kodiaq, and Nissan X-Trail.

“Majestor strengthens our presence in high-value SUVs and offers a differentiated alternative in the segment,” Mehrotra told Fortune India.

With exports currently to Nepal and Bhutan, and plans to explore select African markets, JSW MG Motor India is positioning scale, electrification, and localisation as the pillars of its next growth chapter.