JSW MG Motor India plans 70 percent localisation across line-up

JSW MG Motor India plans to raise its localisation levels to 70 percent across its ICE and EV range in India. “There is now board approval for further investment to a very large degree to get the localisation levels up to about 70-odd percent. For existing products as well as for any new model that we bring, the starting point will be 70 percent localisation,” the company’s managing director, Anurag Mehrotra, told our sister publication Autocar Professional.

1. EVs, hybrids expected to account for 75 percent sales over the next 5 years
2. Battery is assembled locally; battery cells and advanced EV components are imported

Localisation expected to offset global supply chain disruptions

Investments are also being made for capacity expansion and product development

Speaking on the requirement of additional localisation, Mehrotra said, “Being more self-reliant and having higher levels of localisation is our mitigation plan for supply chain resilience.” Currently, the localisation levels for the Comet EV and Hector are around 61 percent and 50 percent, respectively. Notably, MG’s battery packs are locally assembled while the battery cells and advanced electrical components are still being imported. However, the manufacturer is working with local suppliers to increase local sourcing and facilitate technology transfer agreements to build domestic capabilities.

JSW MG Motor has committed an investment of up to Rs 3,700 crore to support product development, plant expansion and localisation. Currently, MG’s Halol manufacturing plant in Gujarat has an annual production capacity of around 1 lakh units, which the manufacturer plans to expand to 1.6 lakh units soon.  

Upcoming MG cars in India

A new MG Select product, a PHEV and a midsize SUV replacement are on the cards

JSW MG Motor India is preparing an aggressive product rollout over the next few years. These revelations by the MD follow a recent Reuters report that the JSW Group plans to acquire an additional 10 percent stake in the JSW MG Motor joint venture for greater operational control.

The manufacturer expects EVs and hybrid vehicles to account for 70-75 percent of its sales over the next five years. The upcoming products include the IM6 electric crossover, which will be sold through the more premium MG Select outlets, a three-row Mahindra XUV 7XO-rivalling SUV based on the Wuling Starlight 560 PHEV and a replacement for the Astor/ZS EV.