JSW MG Motor India to invest ₹6,000 crore, plans capacity expansion and operational growth

JSW MG Motor India, along with its vendors, is investing around ₹6,000 crore across India. This investment is targeted at capacity expansion at the automaker's Halol plant as well as bolstering operations across the country.

The company is a joint venture between JSW Group and SAIC Motor. JSW Group currently holds a 35% stake in MG Motor India and SAIC Motor owns 49%, with the remaining stake held by other Indian investors, dealers and employees. The diversified Indian conglomerate i currently in discussion with SAIC Motor on the acquisition of an additional stake in the company. However, the discussions are still on and nothing has been finalised as yet.

During the launch of the company's latest models, MG Hector Tomahawk EV and MG Hector Tomahawk PHEV on Wednesday, the automaker revealed that it aims to double the production capacity at the Halol plant in Gujarat to 2.20 lakh units per annum by January 2028. Parth Jindal, Director, JSW MG Motor India, said that currently, the total investment and the ongoing investments that are being made by MG Motor India are to the tune of ₹3,500 crore. "On top of our investment, our vendors are investing close to 2,500 crore as well. So, overall there is about a ₹6,000 crore investment that is being made due to JSW MGI's requirement, partly by our vendors and partly by us," PTI quoted him saying.

Jindal also said that currently, the Halol plant, which was previously owned by General Motors, and later puchased by SAIC in 2017 after the American auto major's exit from India, has a production capacity of 110,000 units per annum, which is targeted to be increased to 160,000 units by March 2027. By January 2028, the automaker is aiming to increase the capacity to 220,000 units per annum, he said. According to him, with this strategy, at least for next 3-4 years, the company doesn't see the need for a new location as the Halol plant itself can go to about 400,000 units per annum. "But once, as soon as we start hitting 250,000 plus, which I hope is not too long in the future, we will make that decision," Jindal reportedly added.

Speaking on the investment, he said that the original investment, a mix of debt and equity, that was made into the company is sufficient for this phase of expansion, and added that, “we had equity remaining from the original investment that JSW made into MG. So, this phase is covered by that." He also said that the company's focus is to continue to grow volumes between 35-40% CAGR. Jindal also said that the issue is supply-side and not the demand-side and added that last year the company clocked 71,000 units and sounded confident that this year it crossed 95,000 units. "Hopefully the target is 100,000 cars. That's the mantra that we've taken as MG. So, it's phenomenal growth," he reportedly said.

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