JSW has ambitions to establish an entirely new car brand in India. This will be owned entirely by JSW and will be distinct from the current JV with SAIC-ownedMG Motor. A few weeks back, it was revealed that JSW has partnered with China-based Chery Automobile to fulfil its plans.
The first JSW car could be theChery Jetour T2 i-DM, which will be locally assembled and launched under a new brand and model name. However, recent reports indicate that JSW is facing some issues related to imports of specific components from China. This could potentially delay the launch plans. Lets check out the details.
Rigorous scrutiny of Chinese imports
To prevent dumping of low-quality goods from China, the Indian government has mandated strict quality control rules. This policy has been active since 2020. Under this quality control regulation, any overseas supplier first needs to get a local certification for imports. While many countries have similar regulations, the process for such certification requests can take several months.
JSW has committed investments worth around $3 billion (~ Rs 27,213 crore) for its new automotive venture. In the initial phase, JSW will be importing certain components from China. These are currently not available off-the-shelf with local suppliers in India. The list includes safety glass components such as windshields and sunroofs. Due to the lengthy certification process, JSW is unable to import these items from China.
JSW Motors First car in India is expected to be
In a letter addressed to the industries ministry, JSW has requested the government to fast-track the approval for Chinese suppliers. JSW has selected these suppliers after a thorough review of multiple local and global suppliers. JSW needs to start and expand operations quickly, as the Indian auto industry is in a crucial development phase. There is huge potential in the hybrid and electric segment, a key focus area for JSW.
Talks with other suppliers
Due to the delay in imports from China, JSW is exploring options to import the safety glass components from suppliers in Germany and Vietnam. However, these are likely to cost more, resulting in an increase in production cost. With their large-scale operations, suppliers from China often have an unmatched cost advantage for their clients.
While JSW is committed to increasing local sourcing, it may have to rely on imports in the initial phase.Reports indicate that the industries ministry is yet to respond to the request letter posted by JSW. Since the local certification for imports can take a long time, JSWs launch plans could be delayed.
JSWs first car, likely the Jetour T2 i-DM PHEV, will be assembled at the companys greenfield production facility in Chhatrapati Sambhajinagar, Maharashtra. If the import issues are resolved quickly, JSW could launch the Jetour T2 i-DM later this year. It will be the most affordable PHEV car in India, giving it a clear advantage.
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