JSW MG Motor plans to invest up to $440 million to expand its India plant and launch new hybrid and electric models, raising capacity to 300,000 units annually.
Despite rising sales driven by its EV portfolio, the company remains loss-making, with losses widening to $121 million in FY25.
The automaker is betting on New Energy Vehicles (NEVs) to form at least 75% of its sales while increasing local sourcing to improve profitability.
JSW MG Motor, a partnership between China’s SAIC Motor and India's JSW Group, is planning to invest up to $440 million (around ₹4,000 crore) to expand its factory in India and launch new cars. Under this plan, the company will mainly focus on hybrid and electric vehicles.
This comes as the carmaker has reporteldly found it difficult to grow in India since 2020, when the government tightened rules on Chinese investments. In 2024, SAIC sold a minority stake in its India business to JSW to raise funds. Although car sales are increasing, the company is reporteldly still making losses.
3 February 2026
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Managing Director Anurag Mehrotra said the company will make the invetsment over the next few years. It plans to launch three to four new models this year and increase its factory’s production capacity from about 120,000 cars a year to 300,000 cars per year. The investment will mainly come from the company's own earnings this year, but it may also raise money through loans or selling shares if needed, Reuters reported.
Notably, India, which is the world’s third-largest car market, is becoming a major manufacturing hub. Companies like Toyota, Suzuki and Renault are investing heavily in the country. However, Chinese companies face restrictions. Besides SAIC, BYD also sells cars in India, but growth has been limited, the report added.
There were talks last year about SAIC reducing its 49% stake in the joint venture. JSW, which owns 35%, wanted to buy a larger share, but both sides could not agree on the company's value.
Political relations between India and China are slowly improving. Mehrotra said getting visas and flights has become easier than before, though some risks remain.
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According to Reuters, the company is still under financial pressure. Its losses doubled to $121 million in the year ending March 2025. It had about $60 million in cash and $344 million in borrowings at that time.
However, sales are improving. The company sold 70,500 cars in 2025, up from 61,000 in 2024, mainly driven by its Windsor electric vehicle.
Going forward, the company wants to focus not just on selling more cars but also on becoming profitable. It plans to build a strong lineup of hybrid and electric vehicles, which it calls New Energy Vehicles (NEVs). Mehrotra said NEVs will make up at least 75% of its total sales. He expects electric and hybrid vehicles to account for 30% of India's total car sales by 2030, compared to about 5% today.
To improve profits, the company will also increase local sourcing of parts instead of importing them. This will help reduce costs, lower dependence on foreign currency, and cut shipping expenses.
