Automaker to Boost Electric & Hybrid Vehicle Capacity, Launch Multiple New Models as Part of Aggressive Growth Push
In a bold strategic move aimed at capitalizing on the booming electric vehicle (EV) market in India, JSW MG Motor India, the joint venture between China’s SAIC Motor and India’s JSW Group, has unveiled plans to invest up to ₹40 billion (approximately $440 million) to expand production capacity and deepen its commitment to hybrid and electric vehicles.
The investment, which will be disbursed over the next few years, marks one of the most significant bets by a global automaker on India’s burgeoning new energy vehicle (NEV) ecosystem. At the heart of the strategy is a substantial expansion of the company’s manufacturing facility located in Halol, Gujarat, with the goal of increasing annual capacity from about 120,000 vehicles to 300,000 units.
JSW MG Motor’s Managing Director, Anurag Mehrotra, highlighted that the expanded factory is designed to support the production of next-generation hybrid and electric passenger vehicles. The company also plans to introduce three to four new models later this year, bolstering its product portfolio in key segments.
Strategic Focus on Electric and Hybrid Vehicles
The investment underscores JSW MG Motor’s commitment to NEVs at a time when the Indian automotive industry is witnessing a paradigm shift toward sustainable mobility. With growing EV adoption and supportive government policies, automakers are rapidly pivoting to electrified platforms and JSW MG Motor is positioning itself to be a leading player in this transformation.
The company’s strategy aligns with broader industry trends showing that electric and hybrid vehicles are expected to constitute a significant share of future car sales in India, as infrastructure improves and consumers increasingly embrace greener alternatives. Industry analysts also note that newer international players are accelerating investments as India prepares to become a regional EV manufacturing hub.
Strengthening Production and Local Sourcing
According to Mehrotra, the forthcoming investment will be funded through a mix of internal accruals, debt and equity options, ensuring financial flexibility while executing the expansion. The company is also focusing on enhanced local sourcing of EV components to reduce costs and strengthen profitability, a key priority as global supply chain disruptions continue to present challenges.
Deepening localisation is expected to not only trim production costs but also reduce dependence on imported parts, giving JSW MG Motor a competitive edge amid rising competition from both domestic and global manufacturers targeting the Indian EV market.
Overcoming Historical Challenges
Despite the positive expansion outlook, JSW MG Motor has navigated a complex operational environment in India. Previously, investment restrictions on Chinese companies limited the ability of SAIC Motor’s wholly owned subsidiary to scale operations independently. As part of overcoming this barrier, SAIC sold a minority stake in the venture to JSW Group in 2024, expanding the Indian partner’s shareholding and offering a stronger foothold in the local market.
Additionally, the company reported rising sales figures in recent years, propelled by models such as the MG Windsor EV, which continue to gain traction among Indian EV buyers. However, JSW MG Motor has also faced financial headwinds, with losses doubling in the fiscal year ending March 2025. This expansion plan represents a strategic effort to rebalance growth with improved profitability through scale and product diversification.
Implications for India’s EV Landscape
The ₹4,000 crore investment is set to have ripple effects across India’s automotive ecosystem. By reinforcing manufacturing capacity and supporting new model launches, the company is contributing to India’s ambition of becoming a major global EV production destination. Industry observers note that this development may encourage further foreign direct investments in the sector.
With government incentives and policy frameworks favoring EV adoption, manufacturers like JSW MG Motor along with other domestic and international brands are intensifying efforts to scale operations and compete in an increasingly electrified future.
JSW MG Motor’s planned ₹40 billion investment to expand EV capacity signals a new phase of growth and stronger emphasis on hybrid and electric vehicles in India. This move not only accelerates the company’s strategic roadmap but also reinforces India’s position as a key player in the global transition toward greener mobility.
