New Delhi: JSW MG Motor India, the Indian arm of China’s SAIC Motor Corp., is planning a major investment of up to Rs 40 billion (around $441 million) over the next few years. The company wants to increase its production capacity as it looks to strengthen its position in India’s fast-growing new-energy vehicle (NEV) market.
The investment will be used to expand the company’s Halol plant in Gujarat from its current capacity of 110,000 units to 300,000 units. According to Bloomberg, Managing Director Anurag Mehrotra said the focus of this expansion will be on electric vehicles (EVs) and plug-in hybrid models, as the company shifts its attention away from traditional petrol and diesel cars.
Capacity expansion and new models
The expansion plan comes after billionaire Sajjan Jindal’s JSW Group partnered with SAIC in 2024 and acquired a majority stake in the business. Since then, the joint venture has made it clear that it wants to become a leading player in India’s NEV space.
According to Mehrotra, the plant upgrade will include improvements to the paint and body shops. The larger capacity will also support new models that are expected to start arriving from 2027. For 2026, the company is planning three to four launches. Out of these, one will be a fully electric vehicle and another will be a plug-in hybrid. These vehicles will be built on flexible platforms that can support different types of powertrains.
New-energy vehicles include battery electric vehicles, plug-in hybrids and, in some cases, fuel-cell vehicles. Mehrotra said that in the coming years, around 75 percent to 80 percent of the company’s business is expected to come from such vehicles.
Sales growth and funding plans
The investment decision follows strong performance in 2025. The Halol plant is currently operating close to full capacity. Retail sales rose by about 35 percent last year, while revenue increased by 27 percent. This growth was much higher than the overall industry growth rate of 5 percent to 6 percent.
While Tata Motors Passenger Vehicles Ltd. remains the overall EV market leader, JSW MG’s share in India’s EV segment has grown sharply. It has increased from less than 10 percent two years ago to about 30 percent in 2025. Much of this rise came from strong demand for its electric multi-purpose vehicle, the Windsor.
The company plans to fund the first phase of expansion through internal funds, as it is currently generating positive cash flow. However, it is also looking at other funding options as spending increases. At the same time, the company is working on increasing localisation to reduce foreign exchange risks and improve margins.