JSW-Volkswagen partnership to be 50-50 Joint venture: Sources

JSW-Volkswagen partnership to be 50-50 Joint venture

The proposed partnership between billionaire Sajjan Jindal’s JSW Group and German automaker Volkswagen is set to be a 50-50 joint venture, said people with direct knowledge of the matter. The entity will focus on the emerging electric vehicle market and both companies are currently in talks to decide the final contours of the deal, the people cited above added.

Moneycontrol had reported on February 20 that JSW and Volkswagen were in talks to collaborate on a venture. JSW Group has been looking at various partnerships with auto companies to gain a foothold in the emerging EV market. The group is already in talks with MG Motor India, owned by China’s SAIC Motor, to develop EVs for the Indian market. While the financial details of the joint venture with MG Motor were not disclosed, both companies said that JSW would hold a 35 percent stake in it.

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

Responding to a query sent by Moneycontrol, a JSW spokesperson said, "We refrain from providing comments on market rumours and speculations."

An email sent to Volkswagen remained unanswered.

Also, 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 Rs 40,000 crore to aid its EV plans.

Volkswagen too has been keen to partner with an Indian automaker for the EV space.

Volkswagen is also considering selling a part of its stake in its India subsidiary, Skoda Auto Volkswagen India, the people cited above said.