The automaker is also discussing the next phase of investment with Chinese partner SAIC, with the easing of the Indian government’s Press Note 3 restrictions potentially opening up more avenues for fresh investment in the venture.
“We would have loved to price the PHEV even better but because of 40% GST on PHEVs, our hands are tied,” Parth Jindal, director, JSW MG Motor India, said on the sidelines of the unveiling of the Hector Tomahawk EV and PHEV models.
PHEVs combine a petrol engine with a rechargeable battery and electric motor. Jindal said a lower tax burden would have allowed the company to price the technology more competitively. The Tomahawk PHEV is priced at ?25.69 lakh, ex-showroom, compared with ?19.49 lakh for the EV version.
Unlike conventional hybrids, PHEVs can be charged externally and run on electric power for a significant distance before the petrol engine takes over. The Tomahawk will be the first locally made PHEV in India.
JSW MG, the third largest EV maker in India after Tata Motors and Mahindra & Mahindra, is also increasing localisation across its new-energy models. Both the Windsor and Hector Tomahawk models are targeted to reach 70% localisation by end-2027, with the company adding about 2-3 percentage points every month.
Battery cells, rare-earth magnets and some electronics are the key components it doesn’t expect to localise. Cells account for about 20-23% of the vehicle, Jindal said, while all other components are expected to be localised by then.The localisation drive comes as JSW MG prepares for higher volumes. The company expects to cross sales of 95,000 vehicles this calendar year and is targeting 100,000 units, with managing director and CEO Anurag Mehrotra saying it aims to sustain annual volume growth of 35-40%.
JSW MG has invested ?3,500 crore, including ongoing investments, in its India operations. Its plant in Halol, Gujarat, currently has annual capacity of 110,000 units, which will rise to 160,000 by March and 220,000 by January 2028. Vendors are investing another ?2,500 crore.
The next phase will require additional capital, with JSW and SAIC discussing how to fund expansion beyond the current capacity plan. JSW owns 35% of the venture and SAIC 49%, with the balance held by Indian institutional investors, employees and dealers. Jindal said the shareholding hasn’t changed and discussions between the shareholders on future funding and ownership are ongoing.
“We really want to go beyond 220,000 units,” Jindal said, adding that the company wants to eventually scale to 400,000 units and then one million vehicles. “For that we will need capital.”
Press Note 3, introduced in 2020, requires government approval for foreign investments from countries sharing a land border with India and has been a key constraint on fresh Chinese investment. Jindal said the recent relaxation “opens up more avenues for them to invest as well”, although no decision has been taken on the next investment round.
Jindal said SAIC views India as a future growth engine as growth in China and Europe has slowed, while its alliance with JSW gives it a local partner with market knowledge and localisation capabilities. The success of the Windsor and the launch of the Tomahawk have increased both shareholders’ confidence in investing further, he said.