India: JSW MG Motor to invest up to €372m euros to expand operations
Citing Anurag Mehrotra, the Managing Director of JSW MG Motor, a new Reuters report says that the company plans to invest 30-40 billion rupees (€279-372 million euros) over the coming years. Mehrotra said that the company will finance the investment through multiple sources, potentially including debt and equity.
The fresh capital injection will allow JSW MG Motor to increase its annual production capacity from approximately 120,000 units to 300,000 units, more than doubling its output. The company has lined up three to four launches this year. Its current cash flows are sufficient to cover this year’s planned capital expenditure. The company also plans to increase localisation in the future to cut costs.
Currently, JSW MG Motor sells six models, three of which are EVs. The company also plans to introduce hybrid models. Last year, the company sold 70,500 cars, recording a 15.6 per cent year-on-year growth. The majority of its volume came from EVs, particularly the MG Windsor, which became the country’s best-selling electric car. The company continues to expect electrified models to contribute at least 75 per cent to its sales, Mehrotra said.
SAIC Motor entered India independently with the MG brand in 2019. The Indian government’s increased scrutiny of Chinese investments since 2020 made expansion more challenging for the company. In 2024, the Chinese automaker transferred a 51 per cent stake in its India business to Indian shareholders, with JSW Group acquiring 35 per cent.
Last year, SAIC Motor was looking at a further reduction in its stake in the Indian joint venture. JSW Group was in talks to purchase the majority of its holdings, but the companies could not agree on the valuation. Indo-Chinese relations have started improving, but Mehrotra said that the risk still exists.
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