This proposed initiative with Volkswagen would be distinct from the joint venture already underway with SAIC Motor Corp., in which JSW Group has a 35% share.
According to Moneycontrol, Sajjan Jindal’s JSW Group is currently in talks with Volkswagen Group to set up a joint venture in India to manufacture electric vehicles (EVs). The negotiations may soon enter an exclusive period, during which neither side will be in contact with other potential partners. These negotiations apparently began earlier this month and are still ongoing.
The move comes days after the JSW Group signed an agreement with the Odisha government to set up an integrated EV battery manufacturing plant in Cuttack and Paradip, expected to cost around Rs 40,000 crore It has been implemented over the years, and in the next few are represented.
JSW Group and China’s SAIC Motor, which owns MG Motor India, agreed in December to develop EVs for the Indian market. Although financial details were not published, JSW was claimed to own a 35% share in the joint venture.
Volkswagen is apparently considering selling its ownership in its Indian affiliate, Skoda Auto Volkswagen India. The German automaker is looking at collaboration prospects with another Indian automaker to help it with its EV manufacturing efforts.
This proposed collaboration with Volkswagen would be distinct from the existing joint venture with SAIC Motor Corp., in which JSW Group maintains a 35% stake. SAIC Motor now operates MG Motor India, which sells two electric vehicles in the Indian market. Notably, none of the JSW Group’s listed companies are involved in the electric vehicle initiative.
Jindal told Business Standard earlier this month that he wants to revolutionize the automotive business by offering high-quality, technologically advanced electric vehicles that are both inexpensive and targeted to the Indian market. He went on to say, “We will focus on high-end research to produce ‘designed by and for Indians’, and we seek to redefine the way people commute and power their lives by enhancing EV penetration.”
Interestingly, Sajjan Jindal has had dreams to produce cars in India since the early 2000s. However, past attempts by the business, such as establishing a subsidiary under JSW Energy to manufacture electric vehicles in 2017, were unsuccessful and had to be abandoned owing to shareholder opposition.
Volkswagen is also rumored to be thinking about selling a stake in its Indian affiliate, SKODA Auto Volkswagen India. The German manufacturer is interested in collaborating with another Indian company to build electric vehicles.
However, neither JSW nor Volkswagen have confirmed the negotiations. A JSW spokeswoman stated, “We refrain from commenting on market rumors and speculations.” If the partnership goes through, it might boost both corporations’ footprint in the developing sector.
