JSW MG targets 70% localisation by 2027, plans Halol capacity of 220,000 units

JSW MG Motor India is seeking lower GST on plug-in hybrids while targeting 70% localisation for Windsor and Hector Tomahawk by end-2027. The carmaker plans to expand Halol production capacity from 110,000 units to 220,000 by January 2028 and is discussing fresh expansion funding with SAIC.

— Source publishedWed, 26 Aug, 2026, 23:17 IST·First seen Wed, 26 Aug, 2026, 23:27 IST·Source ET Small Business

What happened

JSW MG Motor India seeks lower PHEV GST, targets 70% localisation for Windsor and Hector Tomahawk by end-2027, and plans to expand Halol capacity to 220,000

Key facts

  • 40% GST on PHEVs
  • Tomahawk PHEV price: Rs 25.69 lakh
  • Tomahawk EV price: Rs 19.49 lakh
  • 70% localisation target by end-2027
  • 95,000 expected sales in 2025
  • 100,000-unit sales target
  • 35-40% annual volume growth target
  • Rs 3,500 crore invested
  • Halol capacity: 110,000 units, rising to 160,000 by March and 220,000 by January 2028
  • Vendors investing Rs 2,500 crore
  • JSW stake: 35%
  • SAIC stake: 49%
  • Long-term capacity ambition: 400,000 units, then 1 million vehicles

Why this matters

Fresh SAIC funding discussions and a 70% localisation target create openings for partnerships or acquisitions across Indian EV supply chains, especially batteries, power electronics and high-value vehicle components.

What to watch

  • Announcement of SAIC/JSW expansion funding amount, ownership structure and capex timeline.
  • Halol capacity milestones, supplier park investments and confirmed start-of-production dates before January 2028.
  • Quarterly Windsor and MG portfolio retail volumes, dealer inventory levels and discount intensity.
  • Localization percentage disclosures, especially for battery, e-motor, controller, power electronics and connected-car components.
  • GST Council, Union Budget or Ministry of Heavy Industries signals on PHEV taxation and EV incentive policy.
  • New MG PHEV/EV product launches, pricing and booking trends.
  • Competitor responses from Tata Motors, Mahindra, Hyundai-Kia, Maruti Suzuki and Toyota.
  • Export agreements or homologation activity tied to Halol output.
  • Secure fresh SAIC and/or JSW-linked funding for plant tooling, supplier localization and working capital.
  • Add Indian suppliers for electronics, stamped parts, interiors, battery packs, e-drive components and potentially localized cells.
  • Phase Halol expansion through new assembly, body-shop and paint-shop capacity while recruiting and training production labor.
  • Use Windsor's sales performance to justify additional EV variants, larger battery options and higher-volume trims.
  • Intensify lobbying for a differentiated GST treatment for plug-in hybrids and clearer domestic-value-add rules.
  • Build dealer, service, charging and residual-value support to sustain higher EV/PHEV retail throughput.
  • Explore export allocation from Halol to improve plant utilization and diversify demand risk.