MG Says Not Immune to Rare Earth Disruption

JSW MG Motor India says it is equally exposed to rare earth supply challenges, with no special advantage despite its association with China’s SAIC Motor. “We are as impacted or not impacted as any other OEM in the country,” said Managing Director Anurag Mehrotra, firmly dismissing suggestions of preferential access due to the brand’s global linkages.

Mehrotra said that is watching the rare earth situation carefully and doesn’t foresee supply constraints in the short term but warned that the real test for the auto industry could emerge in the months ahead. “Right now, we’re getting parts that were ordered in April. It’s a three-month cycle. But we’re watching the situation very carefully," he said on the sidelines of the launch of the company’s new luxury retail format, MG Select, in Thane. 

“This is not just an EV problem,” Mehrotra cautioned, referring to the rising concerns over the availability of rare earth magnets that are critical components in electric motors and other car modules. “It impacts ICE products as well. These are components that go into many modules of the car. If someone thinks this is only about EVs, that’s not true.”

While MG Motor is not facing any immediate production disruptions, Mehrotra admitted that the next few months will need close monitoring. He adds that the issue is being taken seriously at an industry level.

“The association is working closely with the government to ensure that this does not impact production across OEMs whether it’s passenger vehicles, commercial vehicles, or two-wheelers," he said. 

Tapping into Luxury

MG Select, which is being positioned as a new-age luxury channel, will launch in 13 cities across India in Phase 1, with further expansion contingent on stabilizing the initial outlets. The new retail format, he adds, will be focused on affordable luxury and new energy vehicles (NEVs) starting with Cyberster and the M9.

“Both these products are electric, designed for consumers who value sustainability, technology, and curated experiences. This is our playbook to disrupt the luxury space, just as we did in the mass EV segment earlier," he adds. 

While JSW Group has ambitious battery manufacturing plans, MG is already assembling battery packs in India using imported cells. “Once JSW’s plans fructify, those cells will also become available to us. Meanwhile, we’ve aggressively ramped up localisation since the JSW acquisition. A disproportionate amount of time and capital is being spent on it," he said. 

On future products, Mehrotra reiterated MG’s commitment to new energy solutions which could include hybrids and plug-in hybrids, depending on viability.

“All powertrains that support clean mobility will be considered depending on the business case. It’s not a technology constraint. It’s about commercial and strategic fit," he said. 

With India’s luxury car market pegged at around 49,000–50,000 units annually, MG, he adds, is evaluating consumer response and determining what share of the pie it can command.