2 million more cars in 4 years — is India’s passenger vehicle boom just beginning?

Carmakers have raised their production capacity from 110,000 to 300,000 units annually. JSW MG Motor India is prepared for its own hybrid model, which it will launch this year.

They are planning to increase their plant capacity and increase production from 110,000 units yearly to 300,000 units in the next 12 to 18 months. At the same time, they are also trying to invest $400 million in the production unit factory to triple their production capacity and enter the market with new models and designs.

They plan to expand capacity at their Halol plant in Gujarat, according to their executive Anurag Mehrotra.

The investment, between $330 million to $440 million (₹3,000 to ₹4,000 crore), will be funded through a mix of internal accruals and external capital, including a potential fundraise from outside investors, he said.

JSW Motor is expanding in the market where there are already major players who have 6 times more capacity than JSW Motor.

Tata Motors produces around 600,000 units annually, Mahindra & Mahindra with 500,000 units, Hyundai Motor India with 750,000 units, Maruti Suzuki with 2.4 million units yearly.

They are all pushing to expand capacity in the passenger vehicle segment. Collectively, they are planning to add 2 million units more in the next four years.

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