Volkswagen, JSW mull EV JV in India

20 Feb 2024 , 02:24 AM

According to news reports, Sajjan Jindal’s JSW Group and Volkswagen Group are in talks to establish a joint venture for the production of electric vehicles (EVs) in India.

According to the reports the two groups would soon move into an exclusivity period during which the parties would not be able to negotiate with other possible partners. They said that the discussions started earlier this month.

With an expected investment of ₹40,000 Crore, the JSW Group and the Odisha government recently signed a deal to establish an integrated electric vehicle and battery manufacturing plant at Cuttack and Paradip.

Volkswagen is also thinking about selling its ownership in Skoda Auto, its subsidiary in India. VW India, according to the previously mentioned sources. According to media sources, the German auto giant is eager to collaborate with another automaker in India to produce EVs.

‘The significant Indian market is under the jurisdiction of Škoda Auto, a division of the Volkswagen Group. A Volkswagen representative responded, ‘We are constantly looking for new business opportunities around the world, but please be aware that we typically don’t comment on speculative news.’

China’s SAIC Motor and JSW Group decided to collaborate on the development of electric vehicles (EVs) for the Indian market in December. The joint venture’s financials were not made public, although both businesses stated that JSW would own a 35% share in it.

According to a Moneycontrol story on December 4, JSW would spend approximately ₹2,800 Crore in the JV, which is expected to have a valuation of ₹8,000 Crore. According to the source, JSW planned to bring on other financial investors to the joint venture at a later date. Enhancing local sourcing, upgrading charging infrastructure, increasing production capacity, and launching a wider range of vehicles with an emphasis on green mobility are just a few of the projects that the SAIC-JSW JV hopes to carry out.

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