JSW MG Motor India has unveiled an ambitious expansion strategy, committing up to $441 million (₹40 billion) to significantly scale up its Halol manufacturing facility in Gujarat. The move will triple production capacity to 300,000 units over the next few years, reinforcing the company’s sharp focus on electric and hybrid vehicles as India’s new-energy vehicle (NEV) market accelerates.
JSW MG Motor India, the Indian joint venture of China’s SAIC Motor Corp. and the JSW Group, is set to invest up to $441 million (₹40 billion) to expand its manufacturing footprint in India. The company plans to increase annual production capacity at its Halol plant in Gujarat to 300,000 units over the next few years.
Managing Director Anurag Mehrotra confirmed the expansion plans as the automaker strengthens its position in India’s rapidly growing new-energy vehicle (NEV) market.
The expansion will involve significant upgrades to the paint and body shops at the Halol manufacturing facility in Gujarat. The plant currently operates at a capacity of approximately 110,000 to 120,000 units annually and is running close to full utilisation.
Retail sales rose about 35% and revenue increased 27% in 2025, compared with overall industry growth of 5% to 6%. The company sold 70,500 vehicles in 2025, up from 61,000 in 2024, driven primarily by strong demand for the Windsor electric vehicle.
The enhanced capacity will also support new product rollouts starting in 2027.
JSW Group joined SAIC in 2024, after which the company shifted its focus toward new-energy vehicles, including electric and plug-in hybrid models, rather than internal combustion engine vehicles.
The automaker plans three to four launches in 2026, including one battery electric vehicle and one plug-in hybrid built on flexible platforms.
“The center of gravity will be on new energy vehicles — 75% to 80% of our business,” Mehrotra said, adding that NEVs will not fall below 75% of the product mix.
This aligns with India’s growing EV ecosystem, supported by government incentives such as the Production Linked Incentive (PLI) scheme for the auto sector and state-level EV policies promoting local manufacturing and adoption.
The company plans to fund the initial phase of the expansion through internal accruals.
“Because we are cash positive,” Mehrotra said, adding that external funding options may be considered later and that “all options are on the table.”
However, Reuters reported the company has not yet turned profitable, with losses widening to $121 million in the financial year ended March 31, 2025. At that time, it had about $60 million in cash and $344 million in borrowings.
JSW MG’s share of India’s electric vehicle market increased from less than 10% two years ago to about 30% in 2025, while Tata Motors Passenger Vehicles remains the overall market leader.
The rapid increase in EV market share reflects shifting consumer preferences toward sustainable mobility solutions and expanding charging infrastructure across India.
The automaker is also increasing local sourcing of components to reduce costs, foreign exchange exposure and dependence on imports and sea freight.
This localization strategy is critical in improving margins and shielding operations from global supply chain disruptions.
India’s restrictions on Chinese investment since 2020 have constrained the expansion of companies such as SAIC and BYD, though Mehrotra said conditions have improved.
“It is better than a couple of years ago but the risk is still there,” he said.
Despite regulatory complexities, JSW MG’s joint venture structure has enabled it to navigate policy challenges and continue expanding its presence in India.