MG Motor as impacted as other automakers from rare earth crisis despite Chinese links: MD

Over the last few months, MG's mass market electric vehicle Windsor has emerged as the largest selling EV in the country. Now, the company JSW MG Motor India is getting ready with two new launches at the luxury end of the spectrum, with the Cyberster sports car and the M9 MPV. But, like others the automaker, which is a joint venture between the JSW Group and China's SAIC Motor, is also worried about the rare earth magnet crisis and the impact it could have on vehicle production.

Rare earth magnets are an integral part in electric vehicles, but they are also used in components for hybrid and ICE (internal combustion engine) vehicles. China has imposed stringent export restrictions on them, and that is giving Indian automakers sleepless nights as a prolonged supply issue could impact production ahead of the crucial festive season.

JSW MG Motor India may be partially owned by Chinese automotive giant SAIC, but that doesn't seem to be giving it any advantage when it comes to sourcing rare earth magnets.

Anurag Mehrotra, the managing director of JSW MG Motor India, says the company is as impacted as other players and the automotive industry body is working with the government to find some resolution to the issue.

"We are as impacted or not impacted as any other vehicle maker in the country," said Mehrotra.

"It is a very serious issue as it impacts many components both in ICE and EV. The association is working very closely with the government to ensure that this issue does not impact the production for all vehicles. Whether its passenger vehicles, commercial vehicles or two-wheelers, everybody is going to see an impact," he added.

The company's production is unlikely to be impacted in the "immediate future", but it will have to "watch the situation very carefully," according to him.

Mehrotra was speaking following the launch of its first MG Select showroom, a new retail channel through which the company will sell luxury vehicles. The Cyberster sports car and the M9 MPV will be the first products that will be sold through the Select showrooms. While the Cyberster will be imported into the country as a completely built unit (CBU), the M9 will be brought in via the semi knocked down route. Pricing for the two vehicles is expected to be announced this month.

The first phase will see the company launch MG Select outlets in 13 cities. Once these outlets stabilise, the company will look at expanding the channel further.

According to Mehrotra, the luxury car market is estimated to be around 49,000-50,000 units. "The segments that we are playing in are fairly niche and in those niche segments we want to disrupt," he said.

Mehrotra added that post the entry of JSW, the company has been aggressively increased its localisation. "A disproportionate amount of our time and capital is being spent on localisation," he said.

Mehrotra reiterated that new energy vehicles will remain the company's focus and all powertrains, whether its EVs, plug-in hybrids or hybrids, will be made available depending on the business case, the product fit and consumer demand.

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