JSW MG Motor India Pvt., the Indian venture of China’s SAIC Motor Corp., plans to invest as much as 40 billion rupees ($441 million) as it races to stake out a dominant position in the country’s fast-growing new-energy vehicle market.
The investment to expand capacity at its India plant to 300,000 units will be spread over the next couple of years, and deepen the carmaker’s focus on electric and plug-in hybrid vehicles, Managing Director Anurag Mehrotra said in an interview.
The outlay is among the most significant capital expansion since billionaire Sajjan Jindal’s JSW Group joined forces with SAIC in 2024, signaling the joint venture’s ambition to become a leading NEV manufacturer in India. The expansion will include upgrades to the paint and body shops and support a pipeline of new models beginning in 2027, he said.
New-energy vehicles — spanning battery electrics, plug-in hybrids and, in some definitions, fuel-cell vehicles — are central to that strategy. Of the three to four new launches planned for 2026, one will be a full EV and another a plug-in hybrid built on flexible platforms capable of supporting multiple powertrains, Mehrotra said.
The investment follows a breakout year for JSW MG. Its Halol plant in the western state of Gujarat, with a capacity of 110,000 units, is running near full utilization after retail sales jumped about 35 per cent and revenue rose 27 per cent in calendar year 2025, far outpacing industry growth of 5 per cent to 6 per cent.
Although Tata Motors Passenger Vehicles Ltd. is the overall leader, JSW MG’s share of India’s EV market has climbed from less than 10 per cent two years ago to about 30 per cent in 2025. That was driven largely by the success of its electric multi-purpose vehicle Windsor, according to Mehrotra.
‘Cash Positive’
The carmaker plans to fund the initial phase of the expansion through internal accruals, “because we are cash positive,” he said, adding that existing approvals are sufficient for this year’s spending.
Even so, the company is evaluating broader financing options as investment ramps up. “All options are on the table,” he said, referring to potential external fund raising, while noting that the JV partners remain in close discussions as they chart the next phase of growth.
Alongside the capacity increase, the automaker is accelerating localization to curb foreign exchange exposure and improve margins.
The spending marks a decisive shift after JSW acquired a majority stake in the business in 2024. Rather than compete head-on in the internal combustion engine segment, the company has chosen to concentrate on NEVs.
“The centre of gravity will be on new energy vehicles — 75 per cent to 80 per cent of our business”, Mehrotra said.
More stories like this are available on bloomberg.com
Published on February 16, 2026
