JSW MG Motor to Invest Rs 3,000 Crore in India, Bets Big on EVs, Hybrids and Second Manufacturing Plant

JSW MG Motor plans to invest Rs 3,000 crore in India, backing a second plant, fresh models and capital spending. The company is also betting on electric and hybrid vehicles, with new launches scheduled in 2025 as it chases faster growth than the wider passenger vehicle market.

Much of JSW MG Motor India’s current momentum comes from new energy vehicles. About 80% of the company’s sales are from electric models. JSW MG Motor wants leadership in the new energy vehicle space, which includes battery electric and hybrid products, as demand grows in urban and smaller centres.

JSW MG Motor investment and plant expansion strategy

Managing Director Anurag Mehrotra said the company will put about Rs 3,000 crore into expanding capacity, launching products and other capital expenditure over the next two years. The second plant will sit next to the existing facility in Halol, Gujarat, and is planned with installed capacity of 300,000 vehicles a year.

JSW MG Motor is already running near its present limit. The Halol plant currently has capacity for 110,000-120,000 units annually, and utilisation stands at 65-70%. JSW MG Motor India produced 72,000 vehicles in CY2025. The new factory is meant to support four upcoming models and future demand in mass-market segments.

Mehrotra told ET the company is examining funding choices for the large spend. He said JSW MG Motor will look at "multiple financial instruments" to raise money. At present, operations are supported through internal accruals, but external funding will be tapped once construction work starts on the second plant.

Mehrotra said, "Right now, we are funding our operations through internal accruals. But as we get towards starting work on our second plant in the later part of this year, we will go in for financing options. We are determining which instrument to use to fund our growth aspirations". He did not share specific structures under review.

JSW MG Motor investment in new vehicles and electric vehicles

On the product side, JSW MG Motor has lined up four new vehicles for launch in CY2025. Mehrotra said, "This year itself we have scheduled for launch four new vehicles, two of which will be high-volume mass market products. Given that we are already utilising 65-70% of our installed capacity, we need to expand going forward. From the start of construction, till commissioning a new plant takes anywhere between 18 to 24 months."

JSW MG Motor’s growth has outpaced the industry. According to Mehrotra, the company’s wholesale and retail performance in the last calendar year far exceeded the overall market. "The industry grew by about 6% last year. Our wholesale rose 18% and retails by 36% in the same period. This year too, I expect industry volumes to grow in high-single or in early double-digits. Our momentum should continue in 2026", Mehrotra said.

The company’s strategy centres on new energy vehicles, including hybrids. Mehrotra said, "We will bring in hybrid vehicles this year. At any point in time, we want to clock 70-80% of our total sales from NEVs". JSW MG Motor expects Indian customers to move towards such vehicles as choices widen and running costs matter more.

Mehrotra believes India could see a shift similar to China in NEV adoption. He said, "Five years back, NEVs used to account for less than 5% of sales in China. Now it is more than 60%. As more products come into the market, demand for NEVs will grow in India." JSW MG Motor is preparing its portfolio with this trend in mind.

Metric	CY24	CY2025
EV share of total car sales in India	About 2.4%	4%
EV sales volume in India	99,875 units	176,817 units

FADA data shows electric vehicles reached 4% of India’s car sales in CY2025, up from about 2.4% in CY24. Volumes grew 77% to 176,817 units from 99,875 units. Mehrotra said lower operating costs of EVs should support quicker adoption over the coming years, aligning with JSW MG Motor’s investment and product roadmap.