Seeing a drop in sales, JSW MG Motor lags even as India’s overall car market rises nearly 20% after GST cuts.
JSW MG Motor has announced a price increase of up to 2% effective 1 January 2026, citing rising input costs and macroeconomic pressures, even as its car sales continue to lag behind the wider industry. The hike will vary across models and variants, according to a company statement on Thursday.
The announcement comes shortly after the GST rationalisation, which reduced taxes across the car segment and boosted overall industry sales. Small cars now attract 18% GST, down from 28%, while larger cars are taxed at 40% instead of 28%. The compensation cess has been removed, lowering SUV taxes from 50% to 40%, and electric vehicles continue to attract 5% GST. Following the GST cuts, India’s car market saw nearly 20% year-on-year growth during the festive season.
However, JSW MG Motor’s sales have declined over the same period. According to FADA data, October sales fell 1.45% YoY to 5,819 units, while November sales dropped 15.95% YoY to 4,400 units.
The company is now pinning its hopes on the updated MG Hector SUV, priced at ₹119.9 million ex-showroom, to drive growth in the new year. “The Hector was our maiden nameplate and quickly became synonymous with the MG brand, emerging as one of India’s most loved SUVs with 1.5 lakh customers since its debut,” said Anurag Mehrotra, managing director at JSW MG Motor India. “With the All-New MG Hector, we take this legacy a notch higher by enhancing its design, comfort, and technology, offering an unmatched value proposition.”
The price revision underscores the challenges faced by JSW MG Motor in balancing cost pressures with competitive positioning in a rapidly expanding car market.
