JSW MG Motor to invest up to $440 million on expansion, deepen bet on hybrids, EVs

JSW MG Motor, a joint venture between China's SAIC Motor and India's steel-to-cement JSW Group, plans to invest up to $440 million to expand its India factory and launch new cars with a focus on hybrid and electric models, its managing director said.

The loss-making carmaker has struggled to grow its presence in India after New Delhi in 2020 sought to limit ‌investments from Beijing. To ⁠raise money, ⁠SAIC sold a minority stake in its India unit to JSW in 2024, but even though sales are rising, it has yet to turn profitable.

Read more: JSW warns of delay in first car launch over China parts licence, letter shows


JSW MG Motor Managing Director Anurag Mehrotra told reporters the company would invest 30 billion to 40 billion rupees ($330 million to $440 million) over the next few years to launch three to four new vehicles this year and expand its existing plant capacity to 300,000 units a year from about 120,000 units currently.

"This will be funded through multiple sources. At least for this year, internal accruals are sufficient," he said, adding that options like debt and equity would also be considered.

INDIA-CHINA RELATIONS HAVE LIMITED JSW ⁠MG MOTOR'S GROWTH

India, ‌the world's third-largest car market, is increasingly becoming a production hub for automakers with Japanese carmakers like Toyota and Suzuki committing billions of dollars in investment and European companies like Renault making a comeback.

But Chinese players have mostly ⁠been kept out because of investment curbs.

SAIC and BYD sell cars in India, but growth has been limited. Last year, SAIC was in talks to cut its 49% stake in the India venture. JSW, which holds a 35% stake, offered to purchase most of SAIC's stake, but the two sides disagreed on valuation.

New Delhi and Beijing are trying to thaw frosty political ties, and Mehrotra said he was seeing an improvement.

"Whether it is visas or flights, there is far more receptivity than earlier. It is better than a couple of years ago but the risk is still there," he said.

CARMAKER BETS ON NEW ENERGY VEHICLES TO BOOST SALES

JSW MG Motor's losses doubled to $121 million ‌in the financial year ended March 31, 2025. It had cash of about $60 million and borrowings of $344 million at that time, reports filed with the government showed.

The company's sales have been rising. It sold 70,500 cars in the 2025 calendar year, up from 61,000 units ⁠in 2024, helped mainly by its Windsor electric vehicle.

Mehrotra said the strategy now was to balance volumes and market share with profitability and build a competitive advantage through its portfolio of hybrid and electric cars, which it defines as new energy vehicles (NEVs).

"In our product plans and volume plans, we do not see NEVs falling below 75% of the total," Mehrotra said, adding that he expected NEVs to make up 30% of India's total annual sales of up to 6 million by 2030. That is up from about 5% of the country's 4 million annual sales currently.

The company will also reduce costs by sourcing more components locally versus importing them, he said.

"Doing deeper localisation on the cars will be one of our biggest unlocks for profitability. It reduces foreign exchange exposure and dependence on sea freight," Mehrotra added.