JSW MG Motor Hits $1B Revenue, But Losses Skyrocket

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AuthorKavya Nair|Published at:
JSW MG Motor Hits $1B Revenue, But Losses Skyrocket
Overview

JSW MG Motor India, a joint venture between JSW Group and SAIC Motor, achieved a $1 billion revenue milestone in FY25, less than six years post-launch. However, net losses nearly doubled to ₹1,096 crore, with the company slipping back into operating losses. The company's strong EV push, now comprising 52% of sales, fuels growth but also pressures its balance sheet amid rising raw material costs.

JSW MG Motor India, the automotive venture between homegrown JSW Group and China's SAIC Motor, has crossed the significant $1 billion revenue mark in the financial year ending March 31, 2025. This achievement comes in under six years since the company began selling vehicles in the Indian market.

Revenue climbed 10% to ₹8,790 crore, equivalent to $1.04 billion based on the average exchange rate for FY25. Despite the sales surge, net losses nearly doubled, escalating to ₹1,096 crore from ₹586 crore in the prior fiscal year. The company also returned to operating losses after a brief period of profitability in FY24.

Sales Growth and Operational Focus

JSW MG Motor's sales registered a 12% increase to 57,899 units in FY25, up from 50,001 units in FY24. The company highlighted its focus on operational excellence, cost reduction, lean manufacturing, and supply chain optimization to mitigate margin pressures and improve cash flows.

Electric Vehicle Push

A significant driver of growth has been the company's aggressive pivot towards electric vehicles. The share of EVs in its total sales surged from 11% in FY23 to 52% in FY25, positioning JSW MG Motor as India's second-largest EV manufacturer behind Tata Motors. Experts attribute this shift to higher EV price points contributing to business boosts.

JV Dynamics and Future Ambitions

The joint venture, finalized in 2024, sees SAIC Motor holding a 49% stake while a JSW Group-led consortium owns 51%. JSW Group aims to become the largest shareholder, potentially through a $300 million funding round. This partnership was necessitated by Indian government restrictions on Chinese investments. JSW Group has ambitious plans, targeting a 33% share of India's EV market by 2030 and aims to increase annual production capacity to 300,000 vehicles.

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