JSW MG Motor says rare-earth shortage won't hit immediate production

Business Standard

09-07-2025

JSW MG Motor, which is now focusing on launching more premium cars after tasting success with its mass-market EV Windsor, says the shortage of rare-earth components is not impacting the company's production plans at the moment, though it is keeping a close watch on the situation.
Anurag Mehrotra, managing director, JSW MG Motor, told reporters on the sidelines of the MG Select showroom launch that the company is as impacted as other players, and the automotive industry body is working with the government to find a resolution. JSW MG Motor has a Chinese link, being a joint venture between India's JSW and China's SAIC Motor. 'We are as impacted or not impacted as any other vehicle maker in the country,' said Mehrotra, adding that it is a serious issue as it affects many components in both internal combustion engine (ICE) and electric vehicles (EVs).
'The association is working very closely with the government to ensure that this issue does not impact production across all vehicles. Whether it's passenger vehicles, commercial vehicles or two-wheelers, everybody is going to see an impact,' he added. The company's production is unlikely to be affected in the 'immediate future', but it will have to 'watch the situation very carefully,' he said. 'At this point of time, we have a lead time of three to four months. So the parts we are receiving today were ordered in April. Since the issue has surfaced in the last three to six months, we have to very cautiously observe what happens in the coming months,' Mehrotra added.
The company launched its first premium car showroom, MG Select, in Thane on Wednesday, where it will initially display the MG Cyberster and MG M9 — a presidential limousine. It has announced plans to set up 14 such outlets in 13 key cities by the end of the third quarter of calendar year 2025.
JSW MG Motor India has a manufacturing facility in Halol, Gujarat, with an annual production capacity of over 100,000 units. Stating that the two premium car models — Cyberster and M9 — are built 'in many ways for India' and represent 'affordable luxury', JSW MG Motor director Parth Jindal said this move will elevate the MG brand significantly.
'It will showcase the true power of the technology that we have, the true power of the joint venture between JSW and Shanghai Auto. We look forward to bringing more cutting-edge products every year, and this will be the first in that series,' Jindal said. 'We have decided to first bring in these two products. Of course, other products will follow, but these are the ones where we believe we can disrupt the market and create differentiation,' he added. 'Next year, we hope to bring in more products. We will always launch cars with the newest technology, and they won't be conventional. They will either be electric or plug-in hybrids.'
The company is set to reveal prices for the two luxury EV models later this month.
When asked whether JSW MG Motor was planning to launch hybrid models as well, Mehrotra said: 'We have clearly articulated our playbook — we will focus on new energy vehicles to deliver clean mobility solutions. That is the goal we are working towards. And for clean energy, all powertrains that are required will be made available depending on the business case — whether it is EVs, plug-in hybrids or hybrids.'