JSW MG Motor to invest ₹3,000 crore in plant expansion and new vehicle launches

JSW MG Motor is looking at investing around Rs 3,000 crore to fund its expansion plan which includes setting up a second manufacturing facility in the country. The company is exploring “multiple financial instruments” to raise the resources, JSW MG Motor India Managing Director Anurag Mehrotra told ET without specifying details.

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“Right now, we are funding our operations through internal accruals. But as we get towards starting work on our second plant in the later part of this year, we will go in for financing options. We are determining which instrument to use to fund our growth aspirations”, Mehrotra told ET, adding, investments to the tune of Rs 3,000 crore is likely to be made in plant expansion, product introductions and capex over the next two years.


The second unit will be set up alongside its existing facility in Halol (Gujarat) and have total installed capacity of manufacturing 300,000 units per annum. JSW MG Motor is currently utilising 65-70% of its capacity of 110,000-120,000 units at its existing facility.

Mehrotra informed, “This year itself we have scheduled for launch four new vehicles, two of which will be high-volume mass market products. Given that we are already utilising 65-70% of our installed capacity, we need to expand going forward. From the start of construction, till commissioning a new plant takes anywhere between 18 to 24 months.” JSW MG Motor India produced 72,000 vehicles in CY2025.

Mehrotra said the company grew at thrice the rate of the industry last year. He expects to maintain the momentum in the ongoing calendar year. “The industry grew by about 6% last year. Our wholesale rose 18% and retails by 36% in the same period. This year too, I expect industry volumes to grow in high-single or in early double-digits. Our momentum should continue in 2026”, he said.

At present, as much as 80% of sales for JSW MG Motor India come in from electric vehicles. Mehrotra said the company wants to be the leading automotive brand in the new energy vehicle segment (which includes pure electric and hybrid vehicles). “We will bring in hybrid vehicles this year. At any point in time, we want to clock 70-80% of our total sales from NEVs”, he said.

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Mehrotra said India is likely to follow a similar trajectory as China as regards demand for NEVs. He informed, “Five years back, NEVs used to account for less than 5% of sales in China. Now it is more than 60%. As more products come into the market, demand for NEVs will grow in India.”

The share of electric vehicles in total car sales in the country nearly doubled to 4% in CY2025, from about 2.4% the previous year. EV sales last year in the local market rose 77% to 176,817 units, from 99,875 units in CY24, shows FADA (Federation of Automobile Dealers’ Associations) data. The unit economics of owning and running an electric vehicle itself should help accelerate adoption in the coming years, he said.