Volkswagen in talks with JSW Group to form EV joint venture: Report
German auto giant Volkswagen Group and Indian conglomerate JSW Group are reportedly in talks to establish a joint venture for electric vehicle (EV) manufacturing in India, a report said. The discussion between the two parties began earlier this month and they are considering entering into an exclusivity period soon, during which the parties would refrain from negotiating with other potential partners, Moneycontrol reported quoting the people directly aware of the discussions.
The billionaire Sajjan Jindal-led JSW Group had 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.
Further, Volkswagen is planning to sell its stake in its Indian subsidiary, Skoda Auto Volkswagen India, the people cited above said. The German brand is also keen on partnering with another automaker in India to manufacture EVs, according to reports.
Meanwhile, in December, JSW Group and China's SAIC Motor-owned MG Motor India announced their collaboration to develop EVs for the Indian market. As per the agreement, JSW would hold a 35 per cent stake in the joint venture.
The SAIC-JSW joint venture aims to undertake various initiatives, such as enhancing local sourcing, improving charging infrastructure, expanding production capacity, and introducing a broader range of vehicles focused on green mobility.
In other news, Mahindra & Mahindra Ltd. (M&M) and Volkswagen Group recently signed their first supply agreement for components of Volkswagen's MEB platform, including battery pack, to be used in Mahindra's electric platform INGLO. This came after Mahindra and Volkswagen Group had signed a partnering agreement and a term sheet on 15 August, 2022. That said, the supply agreement will span over several years and will have a total volume of about 50GWh over a lifetime.
Source - Moneycontrol.com
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