JSW Motors warns China component delays could postpone first car launch
Economic Times, 12 Feb '26
India's JSW Motors, part of Sajjan Jindal's JSW Group, has indicated that its first car launch could be delayed unless New Delhi expedites licences to import components from China, according to a letter reviewed by media sources.
JSW Motors is investing US$ 3 billion in its car manufacturing venture and plans to produce hybrid and electric vehicles in the western state of Maharashtra.
The company intends to initially use imported components while developing a local supply chain.
JSW Group, a conglomerate involved in steel and cement businesses, plans to launch its first car under JSW Motors in the second half of 2026.
The rollout faces potential delays due to India's quality control regulations, which require all overseas suppliers to obtain certification from local authorities before importing goods into the country.
JSW has written to the Ministry of Industries, requesting expedited approval for its Chinese suppliers of safety glass, including windshields and sunroofs. The suppliers were selected following a review of domestic and international options, the company stated.
The letter, dated 18th December, noted: "It is necessary to import some of the components for the planned vehicles through the import route as the same is not available on an 'off-the-shelf' basis with Indian automotive suppliers."
Neither JSW nor the Ministry of Industries responded to emailed requests for comment. The company's request to the ministry and the impact of potential approval delays on its new car launch have not been previously reported.
Scrutiny on goods and investments from China
India introduced quality control regulations in 2020 to limit low-quality imports, particularly from China. The rules have delayed approvals for foreign companies, as the process can take several months and increase costs.
Analysts note that concerns remain regarding imports and investment from China due to political tensions following a border clash in 2020.
While relations between New Delhi and Beijing are improving, a trade economist stated that full recovery will take time.
"The government will take measured steps," he said. "It just cannot rush to do something significant with China while negotiating a major trade deal with the U.S," he further added.
A source with direct knowledge of the matter, who requested anonymity, stated that the ministry has not yet responded to JSW's letter.
JSW is exploring alternative suppliers in Germany and Vietnam, although sourcing from these countries would increase costs and raise the final price of the vehicle, the source further added.
The company is in discussions with Chery Automobile regarding a technology partnership that would allow JSW to utilise the Chinese automaker's technology to produce vehicles locally.
JSW also holds a stake in Chinese automaker SAIC Motor's India venture, now called JSW MG Motor India, which has faced challenges in growth due to New Delhi's restrictions on Chinese investments.