JSW MG Motor India Pvt Ltd will invest about $400 million over the next four years to nearly triple its manufacturing capacity and accelerate its electric and hybrid vehicle push, according to its top executive
The Gurugram-based carmaker—a joint venture between Mumbai-headquartered JSW Group and China’s SAIC Motor—plans to expand capacity at its Halol plant in Gujarat from around 110,000 units annually to over 300,000 units in the next 12 to 18 months, managing director and chief executive Anurag Mehrotra told Mint in an interview.
The investment, between $330 million to $440 million ( ₹3000 to ₹4000 crore), will be funded through a mix of internal accruals and external capital, including a potential fundraise from outside investors, he said.
The expansion signals JSW MG’s intent to emerge as a significant force in India’s fast-evolving new energy vehicle market. Currently the country’s second-largest EV maker, the company is doubling down on electric and hybrid models, betting they will make up about 30% of overall passenger vehicle sales by 2030.
The push also comes as the broader industry enters an aggressive capacity build-out phase, with Maruti Suzuki India Ltd, Mahindra and Mahindra Ltd, Hyundai Motor India Ltd and Tata Motors’ passenger vehicle arm collectively planning to add over 2 million units of annual capacity in the next four years.
The latest product and capacity offensive through infusion of funds at JSW MG comes as the company eyes a public listing in the future.
“The shareholders' commitment to the business is phenomenal. Both shareholders are extremely buoyant on the opportunity. Like Mr. Jindal says, 'it's a Maruti moment'. It's once in a lifetime that you get a chance to transform an industry,” Mehrotra said.
The company will introduce four new products in 2026: two electric vehicles, an internal combustion engine (ICE) SUV called MG Majestor, and a plug-in hybrid.
The latest investment will mark the company’s most aggressive expansion since an Indian investor consortium led by JSW Group acquired a controlling stake in 2024. SAIC holds 49% in JSW MG Motor India, while JSW Ventures owns about 35%. The remaining stake is held by Indian financial institutions, dealers and employees.
Strategy reset
“Back in 2024 when the JV got formed and JSW came in March of 2024, we spent a lot of time looking at defining what our strategy should be. It was very clear that we didn't want to be a ‘me too’ brand. Because challenger brands will always find it difficult if you play in the ‘me too’ space,” Mehrotra said.
“We spent time defining that instead of being a small player in a large pond. We want to be a reasonably sized large player in the new energy vehicle space,” he added.
Mehrotra, who joined JSW MG in February last year and will complete a year at the helm on Tuesday, succeeded long-time managing director Rajeev Chaba. He previously served as vice-president, international business strategy for Tata Motors’ commercial vehicle segment.
Before his stint at Tata Motors, Mehrotra spent more than 14 years at American carmaker Ford India, where he eventually went on to serve as president and managing director.
Group rivalry?
Even as it prepares to take on Tata Motors, VinFast, Mahindra and Mahindra, Hyundai Motor India and soon Maruti Suzuki in the EV and hybrid segments, JSW MG faces a potential challenger closer home.
JSW Group is building its own automobile brand, JSW Motors, which is expected to begin its product offensive with a hybrid vehicle. In December, Sajjan Jindal said plans were firmed up and that sales could begin in the October–December quarter.
Mehrotra did not directly comment on how JSW MG would navigate competition from within the group, instead highlighting access to hybrid technology through SAIC.
“We have access to hybrid technology through SAIC. And that is a huge competitive advantage that we have versus any other player in the country. Why hybrids? Because hybrids is a stepping stone to EVs generally,” he said.
Within three years of JSW publicly outlining its automobile ambitions, the group is set to house two passenger vehicle businesses—an unusual dynamic that industry watchers say bears watching.
Puneet Gupta, director at S&P Global Mobility, said MG Motor has a proven and strong product lineup, with the management team steadily building up the business.
“JSW’s entry into the passenger car business through its venture with MG has helped the group better understand the dynamics of the car industry. Going forward, it will be important to see how JSW balances the positioning of the MG Motor and its own brands while maintaining consumer trust."
Losses mount
The expansion push comes even as losses widen. According to filings with the ministry of corporate affairs reviewed by Mint, JSW MG Motor India’s losses nearly doubled to ₹1,096 crore in FY25 from ₹586 crore in FY24.
Revenue rose 10% to ₹8,790 crore in FY25. Based on an average exchange rate of ₹84.57 to a dollar during the period, the company recorded $1.04 billion in revenue—its first time crossing the billion-dollar mark since it began selling vehicles in India in 2019.
The company currently offers five electric vehicles—MG Windsor, MG Comet, ZS EV, MG M9 and MG Cyberster—reflecting the rising share of EVs in its portfolio.
Mehrotra said localization will be a central lever to improve profitability over the next few years.
“When you are planning your portfolio well ahead, you have enough time to be able to localize well ahead of the product getting launched. That's why the 3 or 5 year plan is what is most important,” he said.
“The capex has been earmarked saying this is the amount of money we need for getting the products, making sure that they are highly localized,” he added.