In recent weeks, it was revealed that JSW has partnered with China-based Chery Automobile to fulfil its big plans in India. From my experience tracking the auto sector, such moves clearly show strong ambitions to establish an entirely new car brand that is fully owned by the group and distinct from its current JV with SAIC-owned MG Motor. The idea is not just about another launch, but about building a fresh identity under a new brand and model name, starting with the first JSW car, expected to be the Chery Jetour T2 i-DM, which will be locally assembled and officially launched in the market.
However, recent reports suggest the company is facing issues related to imports of specific components. While import options from global suppliers remain open, the overall cost could be higher in comparison to imports from China. These supply-side details may potentially delay the launch plans, creating short-term hurdles even as long-term strategy stays firm.
Tight Checks on Chinese Imports
In a recent letter addressed to the industries ministry, JSW requested the government to fast-track the approval of Chinese suppliers. From what I have seen in the auto sector, timing is everything. The Indian auto industry is in a crucial development phase, with huge potential in the hybrid and electric segment, which is a key focus area for the company.
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To start and expand operations quickly, JSW has already selected partners after a thorough review of multiple global suppliers. As part of its new automotive venture, the company has committed investments of $3 billion (around Rs 27,213 crore). In the initial phase, it plans on importing certain components that are currently not available off-the-shelf from local suppliers in India, including items on the list such as safety glass components, windshields, and sunroofs.
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At the same time, the Indian government has mandated strict quality control rules to prevent dumping of low-quality goods from China. This policy, active since 2020, falls under the quality control regulation, which requires any overseas supplier to obtain local certification before imports are allowed. While many countries follow similar regulations, the process for certification requests can take several months. Because of this lengthy certification process, JSW is sometimes unable to import key items, even though they are essential for production.
Expanding Supplier Network Beyond China
With the industries ministry yet to respond to the request letter, and local certification taking a long time, JSW is actively exploring options beyond China. From my experience in automotive sourcing, depending on one country during a supply delay can slow down launch plans significantly. That is why the company is in talks with suppliers in Germany and Vietnam to import safety glass components.
However, these alternatives may cost more, leading to an increase in production cost. Chinese vendors, backed by large-scale operations, often offer an unmatched cost advantage to their clients, which makes shifting away from them a tough decision.
Even so, JSW remains committed to increasing local sourcing, though it may still need to rely on imports in the initial phase. If the current import issues are resolved quickly, the company can move ahead with the launch of its first car, the Jetour T2 i-DM PHEV, which will be assembled at its greenfield production facility in Chhatrapati Sambhajinagar, Maharashtra. As per reports, the model could arrive later this year and is expected to be the most affordable PHEV car in India, giving it a clear advantage in the market.
