JSW Group, Volkswagen begin talks to set up EV joint venture

In December, JSW Group and MG Motor India, owned by China’s SAIC Motor, agreed to develop EVs for the Indian market

Billionaire Sajjan Jindal’s JSW Group is in talks with Volkswagen Group to set up an electric vehicle (EV) manufacturing joint venture in India, people directly aware of the discussions said.

The two groups may soon enter an exclusivity period, during which the parties would refrain from negotiating with other potential partners, the people said, requesting anonymity. The talks began earlier this month, they added.

The JSW Group recently signed an agreement with the Odisha government to set up an integrated EV and battery manufacturing project at Cuttack and Paradip with an estimated investment of ₹40,000 crore.

Volkswagen is also considering selling its stake in its India subsidiary, Skoda Auto Volkswagen India, the people cited above said. The German auto giant is keen on partnering with another automaker in India to manufacture EVs, according to media reports.

“We refrain from providing comments on market rumours and speculations,” a JSW spokesperson said in response to a query.

"Within the Volkswagen Group, Škoda Auto is responsible for the important Indian market. We are always exploring new business opportunities worldwide, however, please understand that we generally do not comment on speculative news,” said a Volkswagen spokesperson.

Also Read: JSW Group to invest Rs 65,000 crore in steel, cement plants in Odisha

In December, JSW Group and MG Motor India, owned by China’s SAIC Motor, agreed to develop EVs for the Indian market. While the financial details of the joint venture were not disclosed, both companies said that JSW would hold a 35 percent stake in it.

On December 4, Moneycontrol reported that the JV was likely to be valued at Rs 8,000 crore, in which JSW will invest around Rs 2,800 crore. The report said JSW would likely induct more financial investors into the joint venture later. The SAIC-JSW JV aims to undertake several initiatives, including enhancing local sourcing, improving charging infrastructure, expanding production capacity, and introducing a broader range of vehicles focusing on green mobility.