According to persons with firsthand knowledge of the situation, the proposed joint venture between German carmaker Volkswagen and billionaire Sajjan Jindal’s JSW Group is expected to be 50-50. According to the sources mentioned above, the corporation will concentrate on the developing electric car industry, and the two businesses are presently in negotiations to determine the specific terms of the agreement.
On February 20, a reporter from Moneycontrol learned that JSW and Volkswagen were in discussions to work together on a project. To establish a presence in the nascent EV industry, JSW Group has been considering several collaborations with automakers. To create EVs for the Indian market, the company has already begun discussions with SAIC Motor’s subsidiary MG Motor India. JSW will own a 35 percent share in the joint venture with MG Motor, both businesses announced, though the financial specifics were not made public.
A JSW representative stated, “We refrain from providing comments on market rumors and speculations,” in response to a question from Moneycontrol.
Volkswagen did not respond to an email that was received.
Along with this, the Odisha government and the JSW Group recently inked a deal for the establishment of an integrated EV and battery manufacturing plant in Cuttack and Paradip, with an anticipated investment of Rs 40,000 crore, to support the company’s EV goals.
In the EV market, Volkswagen has also been eager to collaborate with an Indian carmaker.
According to the aforementioned sources, Volkswagen is also thinking about selling a portion of its ownership to Skoda Auto Volkswagen India, its Indian subsidiary.
While some of the founders of India’s electric vehicle (EV) startups lamented the elimination of customer-centric incentives like the FAME scheme and the lack of clarity surrounding the FAME III subsidy, the government’s intention to strengthen the EV ecosystem, including the charging infrastructure, has been praised.
The development of a more ecologically friendly public transportation system is given top priority in the Interim Union Budget for 2024–2025. The Society of Manufacturers of Electric Vehicles (SMEV) Director General, Sohinder Gill, told Moneycontrol that “a notable absence is observed in the continuation of direct customer subsidies, a crucial component that played a significant role in driving the adoption of electric vehicles across various categories during the last 2 years.“
According to the Center’s founders, the industry will benefit greatly from the organization’s plans to expand the ecosystem and force the switch to electric vehicles for public transit.
To promote electric mobility and meet India’s climate goals, it will be essential to “adopt cleaner and greener transport alternatives, rationalize the GST tax structure on EV charging and batteries, coupled with the reinforcement of existing EV policies and the introduction of new ones,” according to Anmol Singh Jaggi, CEO and co-founder of BluSmart.
Startups in their early stages have also applauded the government’s plan to support electric vehicle public transit.
