JSW can also be imported from other global suppliers, but the overall cost is higher compared to importing from China.
JSW has an ambition to establish an entirely new car brand in India. This will be wholly owned by JSW and will be different from the current joint venture, which is owned by SAIC. MG motor. A few weeks ago, it was revealed that JSW had partnered with China-based Chery Automobile to carry out its plans.
The first JSW car was Chery Jet Tour T2 i-DMwill be assembled locally and launched under a new brand and model name. However, according to recent reports, JSW is facing some issues related to importing certain parts from China. This could delay launch plans. Let’s check the details.
Strict monitoring of imports from China
To prevent the unfair sale of low-quality products from China, the Indian government has mandated strict quality control rules. This policy has been in effect since 2020. Under this quality control regulation, foreign suppliers must first obtain local certification for imports. Although many countries have similar regulations, the process for such a certification request can take several months.
JSW has committed investments worth around $3 billion (approximately Rs. 27,213 crore) in the new automotive venture. In the initial stage, JSW plans to import certain components from China. These are currently not available ‘off the shelf’ from local suppliers in India. The list includes safety glass components such as windshields and sunroofs. JSW is unable to import these items from China due to the lengthy certification process.
In a letter to the Ministry of Industry, JSW urged the government to expedite approvals for Chinese suppliers. JSW selected these suppliers after thoroughly reviewing multiple local and global suppliers. As the Indian automobile industry is at a critical stage of development, JSW needs to start and expand its operations quickly. There is great potential in the hybrid and electric segments, which are JSW’s main focus areas.
Discussions with other suppliers
Due to delays in imports from China, JSW is considering options to import safety glass components from suppliers in Germany and Vietnam. However, these can be costly and increase production costs. Because Chinese suppliers operate on a large scale, they often have unparalleled cost advantages for their customers.
JSW is working to increase local sourcing, but may have to rely on imports in the early stages. According to reports, the Ministry of Industry has not yet responded to the request letter posted by JSW. JSW’s launch plans may be delayed as local certification of imported products may take time.
JSW’s first vehicle will likely be the Jetour T2 i-DM PHEV, which will be assembled at the company’s greenfield production facility in Chhatrapati Sambhajinagar, Maharashtra. JSW may launch the Jetour T2 i-DM later this year if the import issue is quickly resolved. This will be the most affordable PHEV vehicle in India, giving it a clear advantage.