JSW MG Motor India plans to raise localisation levels to at least 70% across all future vehicle launches as the automaker accelerates investments in new products and seeks to reduce costs in India's fast-growing new energy vehicle market.
According to JSW MG Motor Managing Director Anurag Mehrotra, localisation is one of the company's key priorities as it looks to strengthen competitiveness, improve supply chain resilience and support long-term growth.
The company has already significantly increased localisation of the Windsor electric crossover and is now pursuing a broader localisation programme across its portfolio. The current localisation level in Comet EV is at 61% and that of Hector is at 50% in the Hector.
"We almost tripled the localisation levels in Windsor and 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%," he said.
The move comes as JSW MG Motor prepares an aggressive product rollout over the next few years, with a focus on electric vehicles, hybrids and premium offerings.
The automaker, a joint venture between India's JSW Group and China's SAIC Motor, has positioned itself as a new energy vehicle company, with electric and hybrid vehicles expected to account for 70-75% of its sales over the next five years.
The company launched several products in the last financial year, 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 its premium MG Select retail channel.
Mehrotra said localisation had become even more important amid global supply chain uncertainties and geopolitical disruptions. "Being more self-reliant and having higher levels of localisation is our mitigation plan for supply chain resilience," he said.
While battery pack assembly is already being carried out in India, battery cells and some advanced electronic components continue to be imported. The company is working with suppliers to increase local sourcing and facilitate technology transfer agreements to build domestic capabilities.
JSW MG is also expanding its engineering resources to support localisation efforts. The company currently has an engineering team of more than 120 people and plans to increase both manpower and infrastructure over the coming years.
The automaker is also investing Rs 3,000-4,000 crore to support product development, localisation and manufacturing expansion. It recently approved an expansion of its Halol plant in Gujarat, which will raise annual capacity to about 160,000 units initially, with further expansion planned later.
"Comet is at 61%, Hector is 50% plus, and so on. Our intent is 70% we should be able to get to."
The company also sees scope for greater collaboration within the broader JSW Group as it expands manufacturing and localisation activities. Mehrotra said there are currently no shared engineering, sourcing or manufacturing operations with other automotive businesses in the group, but added that potential synergies would be assessed as new products and capacity investments are rolled out.
He said JSW Group companies already participate in supplier programmes, while stressing that any collaboration would have to comply with regulatory requirements governing related-party transactions. "Whatever synergy can be achieved, will be achieved," he added.