Quick Highlights:
- JSW Motors’ first car, likely based on the Jetour T2 i-DM, may face launch delays due to import certification issues.
- Safety glass components such as windshields and sunroofs sourced from China are at the center of the bottleneck.
- India’s quality control rules introduced in 2020 require overseas suppliers to obtain local certification, a process that can take months.
- Alternative sourcing from Germany and Vietnam is being explored, but higher costs could impact pricing.
JSW Motors’ New Car Plans Face Regulatory Headwinds
JSW Group is preparing to enter India’s passenger vehicle market with a new automotive brand distinct from its existing joint venture with MG Motor. The company has already partnered with China-based Chery Automobile and plans to locally assemble its first product at a greenfield facility in Chhatrapati Sambhajinagar, Maharashtra.
From what I see, this is one of the more ambitious new automotive ventures in India, especially with planned investments of around $3 billion (₹27,213 crore). The company is targeting the fast-growing hybrid and electric vehicle segments, which remain relatively underpenetrated in India.
However, the rollout timeline now appears uncertain.
For Context: JSW to Launch Jetour T2-Based PHEV SUV in India
Import Restrictions Create a Bottleneck
The immediate challenge stems from India’s quality control regulations, which require foreign suppliers to obtain certification before exporting components to India. These rules, in force since 2020, were designed to prevent the dumping of substandard goods and strengthen domestic manufacturing.
For JSW, the issue is practical rather than strategic. Certain components—particularly automotive safety glass like windshields and sunroofs—are not readily available off-the-shelf from Indian suppliers.
Because certification approvals can take several months, imports from Chinese suppliers are currently delayed, putting pressure on project timelines.
Government Approval Sought
JSW has formally written to the industries ministry requesting faster approval for its selected Chinese suppliers. According to the company, these vendors were chosen only after extensive evaluation of both domestic and global options.
So far, no official response has been reported, and uncertainty around approvals continues to hang over launch planning.
Analysts note that regulatory caution is partly influenced by geopolitical tensions following the 2020 border clash between India and China. While trade relations have shown signs of improvement, policy decisions in sensitive sectors still tend to move carefully.
Exploring Alternative Suppliers — At a Cost
To keep the project moving, JSW is evaluating suppliers in Germany and Vietnam. While technically feasible, sourcing from these markets would raise production costs, which could ultimately affect pricing.
In my view, this is where the real strategic trade-off lies. Chinese suppliers often offer significant cost advantages due to scale, and replacing them—even temporarily—can shift the economics of an entire vehicle program.
Jetour T2 i-DM: What We Know So Far
The first JSW vehicle is expected to be based on the Chery Jetour T2 i-DM plug-in hybrid. It will likely be rebranded under JSW’s own marque and assembled locally.
If launched on schedule, the model is expected to be positioned as one of the most affordable PHEVs in India, which could give it a strong competitive edge in a segment that is still emerging.
However, any prolonged delay in component imports could push the launch timeline beyond the originally planned second half of the year.
Why This Matters for India’s Auto Market
India’s automotive industry is entering a crucial phase, with hybrid and electric vehicles gaining momentum and several global and domestic players investing heavily.
JSW’s entry could add meaningful competition, particularly in affordable electrified vehicles, a space where consumer demand is rising but choices remain limited.
From a broader perspective, this situation also highlights the tension between localization goals and global supply chains, something many automakers operating in India are navigating today.
Frequently Asked Questions — FAQs
Q. What is causing the delay in JSW Motors’ first car launch?
- The delay is linked to import certification requirements for Chinese suppliers, particularly for safety glass components such as windshields and sunroofs.
Q. Which car is JSW Motors planning to launch first?
- The first model is expected to be based on the Chery Jetour T2 i-DM plug-in hybrid, assembled in India and sold under a new JSW brand.
Q. Where will JSW manufacture its vehicles in India?
- Production is planned at a greenfield manufacturing facility in Chhatrapati Sambhajinagar, Maharashtra.
Q. Why can’t JSW source these components locally?
- Some components required for the initial models are not currently available from Indian suppliers in ready-to-use form, making imports necessary.
Q. Are alternative suppliers being considered?
- Yes, suppliers in Germany and Vietnam are being evaluated, but sourcing from these markets would likely increase costs.
Q. When could the Jetour T2 i-DM launch in India?
- If regulatory approvals are granted soon, the vehicle could still launch later this year, but delays remain possible depending on certification timelines.
