JSW MG Motor India is investing around Rs 6,000 crore, together with its vendors, to expand production capacity at its Halol plant in Gujarat and strengthen its operations in India.
The joint venture between JSW Group and SAIC Motor plans to increase the annual production capacity of its Halol facility from the current 1.10 lakh units to 1.60 lakh units by March and further to 2.20 lakh units by January 2028.
Of the total investment, JSW MG Motor India is investing around Rs 3,500 crore, while its vendors are expected to contribute nearly Rs 2,500 crore.
Parth Jindal, Director of JSW MG Motor India, said part of the investment will be used to increase capacity at the Halol plant. The company currently has capacity to produce around 1.10 lakh vehicles annually.
Halol Plant Capacity Expansion
The company expects the Halol facility to eventually support production of up to 4 lakh vehicles a year. Jindal said JSW MG Motor India does not expect to require a new manufacturing location for the next three to four years.
However, the company could consider another facility once production crosses around 2.5 lakh vehicles annually.
Jindal said the current expansion phase can be funded through the original investment made by JSW Group, including equity that remains available from the initial investment.
SAIC Stake Talks Continue
JSW Group currently owns a 35% stake in MG Motor India, while SAIC Motor holds 49%. The remaining shares are held by other Indian investors, dealers and employees.
Jindal said discussions between JSW and SAIC regarding a possible increase in JSW’s stake are continuing, but no agreement has been finalised.
Both shareholders remain focused on expanding the Indian business, with SAIC viewing India as an important future growth market.
Focus on EVs and New Energy Vehicles
The investment comes as JSW MG Motor India expands its focus on electric and new energy vehicles.
The company recently launched the Hector Tomahawk in EV and plug-in hybrid electric vehicle versions. The models are based on the company’s newly developed Advanced Drive Architecture Platform Technology, or ADAPT, which is also described as India’s first multi-new Energy Vehicle platform.
The Hector Tomahawk EV is priced at Rs 19.49 lakh, while the PHEV version is priced at Rs 27.0 lakh.
The company is targeting annual volume growth of around 35% to 40%. It sold around 71,000 vehicles last year and expects sales to cross 95,000 units this year, with a target of reaching 1 lakh vehicles.
Battery Manufacturing Plans
JSW MG Motor India is also looking to strengthen its battery manufacturing capabilities in India. Jindal said the company is keen to manufacture battery cells locally, although LFP cell technology remains largely concentrated in China.
JSW Energy has already commissioned its cell-to-pack battery assembly line for energy storage, while the cell-to-pack facility for MG has also been commissioned.
The company said the expansion will help increase production, support new energy vehicle growth and strengthen its presence in India’s rapidly expanding electric vehicle market.
