JSW MG Motor India targets 70 % localisation with major investment

JSW MG Motor India will enforce a 70% domestic component baseline for all future models. The company plans to invest between Rs 3,000 and Rs 4,000 crore to expand plant capacity and strengthen supply chain resilience. This move aims to reduce costs and increase competitiveness in India's rapidly growing new energy vehicle market.

Key Highlights

• JSW MG Motor India sets 70 percent localisation baseline for all future models
• The company invests Rs 3,000 to 4,000 crore to expand plant capacity and supply chain resilience
• Comet EV at 61 percent and Hector at 50 percent localisation currently
• Electric and hybrid vehicles expected to make up 70 to 75 percent of sales in five years

Localisation Strategy and Targets

Managing Director Anurag Mehrotra confirmed that localization is a key priority for JSW MG Motor India. The company has already increased localization in the Windsor electric crossover and is now expanding this approach across its entire portfolio. The Comet EV currently has 61% localization, while the Hector stands at 50%. Mehrotra stated, "We almost tripled the localization levels in Windsor EV, and there is now board approval for further investment to get the localization levels up to about 70%. For existing products and any new model, the starting point will be 70%."

This localization push comes as the automaker prepares for an aggressive product rollout over the next few years. The focus will be on electric vehicles, hybrids, and premium offerings. JSW MG Motor India, a joint venture between JSW Group and SAIC Motor, expects electric and hybrid vehicles to make up 70-75% of its sales in the next five years.

Product Launches and Manufacturing Expansion

In the last financial year, the company launched several products, including the Windsor Long Range, M9 luxury MPV, and Cyberster electric sports car. It also unveiled the Majestor SUV and plans to introduce three to four more products this year, including one under the premium MG Select retail channel.

Localization has become more important due to global supply chain uncertainties and geopolitical disruptions. Mehrotra explained, "Being more self-reliant and having higher levels of localization are our mitigation plans for supply chain resilience." While battery pack assembly takes place in India, the company still imports battery cells and some advanced electronic components. JSW MG Motor is working with suppliers to increase local sourcing and establish technology transfer agreements to build domestic capabilities.

The company is also expanding its engineering resources to support localization. The current engineering team has over 120 people, with plans to increase both manpower and infrastructure in the coming years. JSW MG Motor is investing Rs 3,000-4,000 crore to support product development, localization, and manufacturing expansion.

Group Collaboration and Future Plans

JSW MG Motor India sees potential for greater collaboration within the broader JSW Group as it expands manufacturing and localization activities. Currently, there are no shared engineering, sourcing, or manufacturing operations with other automotive businesses in the group. However, potential synergies will be assessed as new products and capacity investments are rolled out.

Mehrotra noted that JSW Group companies already participate in supplier programs and that any collaboration would comply with regulatory requirements for related-party transactions. SAIC Motor will sell an additional 10% stake in JSW MG Motor India to JSW Group. This move will further deepen localization efforts amid ongoing restructuring of the joint venture.

Also Read: MG Majestor launched in India at Rs 40.99 lakh with twin turbo diesel engine

CarBike 360 Says

JSW MG Motor India’s push towards 70 percent localization reflects a clear commitment to strengthening its foothold in the Indian market. With strategic investments and a focus on domestic sourcing, the brand is not only aiming to improve cost efficiency but also align with national manufacturing goals.