JSW MG Motor India invests Rs. 14 billion to expand production capacity
Economic Times, 20 July '26
JSW MG Motor India is investing Rs. 14 billion (US$ 145.3 million) to increase production capacity by nearly one-third at its existing facility in Halol, Gujarat, and launch four new vehicles in the mainstream market during the ongoing financial year.
JSW MG Motor India Managing Director Anurag Mehrotra said that work is underway to increase production capacity to 160,000 units annually by the end of the financial year, up from the current 120,000 units.
In the second phase, the company plans to further increase production capacity to 300,000 units annually in the near term.
"We introduced three new vehicles last year and had scheduled four more this year. The first of these, the Majestor, has already been launched. We will be launching a battery electric vehicle and a plug-in hybrid vehicle shortly," Mehrotra said.
The new vehicles will be introduced on the recently unveiled ADAPT (Advanced Drive Architecture Platform Technology) platform, which the company also plans to use for the introduction of a hybrid vehicle and range-extended electric vehicles (REEVs) at a later stage.
Mehrotra said the capital expenditure planned for the current financial year is part of the total investment of Rs. 30-40 billion announced by JSW MG Motor India for expanding capacity, increasing localisation and introducing new products in the Indian market over the medium term.
Mehrotra said the company's board has already approved the expansion plan. Currently, JSW MG Motor India operates as a 51:49 joint venture, with JSW holding a 35% stake, Indian financial institutions holding 8%, MG Motor India dealers holding 3% and JSW MG Motor India employees holding 5%. The remaining 49% stake is held by China's SAIC Motor.
The company recorded a 19% increase in sales in 2025. A majority of the sales volume came from the Windsor electric car. Going forward, Mehrotra said the company aims to remain a leading automotive brand in the new energy vehicle (NEV) segment, which includes pure electric and hybrid vehicles.
"At any point in time, we want to clock 70-80% of our total sales from NEVs," he said.
Mehrotra said the company has witnessed increased demand for electric vehicles over the past few months following the West Asia crisis, and sales are expected to increase further in the coming months.
"There is a lot of awareness about EVs now. While the Tier 1 market is larger, we are seeing strong growth in smaller towns and cities as well. The share of electric vehicles in new vehicle sales in the market should be close to double digits by the end of this year," Mehrotra said.
The share of electric vehicles in total passenger vehicle sales in India nearly doubled to 4% in 2025, compared with approximately 2.4% in the previous year. According to the Federation of Automobile Dealers' Associations (FADA), domestic EV sales increased 77% in 2025, compared with those in 2024.