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JSW delay car launch over China parts import licences

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In a major regulatory hurdle for billionaire Sajjan Jindal’s automotive ambitions, JSW Motors (part of the JSW Group) has warned the Indian government that its planned vehicle launch in late 2026 could be delayed.

The bottleneck stems from the Bureau of Indian Standards (BIS) and the Ministry of Heavy Industries, which have yet to grant quality certification and import licenses for critical components sourced from China.


The Conflict: Quality Control vs. Launch Timelines

In a letter sent to the Ministry of Industries in December 2025 (disclosed on February 11, 2026), JSW Motors highlighted that its “first-mover” advantage in the hybrid and EV segment is at risk.

1. The “Off-the-Shelf” Problem

JSW Motors noted that several essential components—specifically safety glass for windshields and sunroofs—are not available from Indian suppliers on an “off-the-shelf” basis. Because these parts are custom-designed for their upcoming models (likely based on the Chery Jetour T2), they must be imported during the initial production phase.

2. 2020 Quality Control Orders (QCO)

Since 2020, India has mandated that all overseas suppliers obtain local certification to prevent the dumping of low-quality Chinese goods.

  • The Bottleneck: The certification process involves physical inspections of Chinese factories by Indian officials, which has become notoriously slow due to ongoing geopolitical tensions.
  • JSW’s Plea: The company has requested the government to fast-track the certification for its specific Chinese vendors to avoid pushing the launch into 2027.

Strategic Impacts & Workarounds

StrategyImpact
Alternative SourcingJSW is scouting suppliers in Germany and Vietnam. However, this would increase production costs by 15–20%, potentially pricing their debut SUV out of the competitive ₹15L–₹30L bracket.
Investment in MaharashtraThe group has committed $3 billion (₹27,000 crore) to a greenfield plant in Chhatrapati Sambhajinagar. Any delay in the launch stalls the “Return on Investment” for this massive facility.
Tech PartnershipJSW is moving independently from its MG Motor JV for this project, partnering with Chery Automobile to tap into their plug-in hybrid (PHEV) technology.

Broader Context: The “SHANTI” and “US Trade” Factors

Trade economists suggest the Indian government is being cautious. With India currently negotiating a major trade deal with the United States, New Delhi is hesitant to appear too “soft” on Chinese imports, even for domestic giants like JSW.

JSW MG Motor: Business as Usual?

While the new JSW Motors venture faces these hurdles, the existing JSW MG Motor India joint venture continues its own trajectory:

  • MG Majestor: A new flagship D+ segment SUV (based on the Maxus D90) is still scheduled for its official unveiling today, February 12, 2026, as it utilizes an existing supply chain already cleared by regulators.

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