Volkswagen and JSW group join hands to establish EV joint venture

The Volkswagen Group and billionaire Sajjan Jindal's JSW Group are in negotiations to establish a joint venture (JV) for the production of electric vehicles (EVs) in India, according to persons with direct knowledge of the talks.

The individuals, who asked to remain anonymous, stated that the two groups would soon move into an exclusivity period during which the parties could not negotiate with other possible partners. They also said that the conversations started earlier this month.

Recently, the Odisha government and the JSW Group inked a deal for the establishment of an integrated electric vehicle (EV) and battery manufacturing facility at Cuttack and Paradip, with an anticipated ₹40,000 crore investment.

In answer to a question, a JSW representative stated, "We refrain from providing comments on market rumours and speculations."

"The significant Indian market is under the jurisdiction of Škoda Auto, a division of the Volkswagen Group. 

Further, a Volkswagen representative responded, "We are constantly looking for new business opportunities around the world, but please be aware that we typically don't comment on speculative news." China's SAIC Motor and JSW Group decided to collaborate on the development of electric vehicles (EVs) for the Indian market in December. The joint venture's financials were not made public, although both businesses said that JSW would own a 35 per cent share in it.

According to previous reports, JSW will spend around Rs 2,800 crore on the JV, which is expected to have a valuation of Rs 8,000 crore. The reports also say that JSW planned to bring on other financial investors to the joint venture at a later date. Enhancing local sourcing, upgrading charging infrastructure, increasing manufacturing capacity, and launching a wider variety of vehicles with an emphasis on green mobility are just a few of the projects that the SAIC-JSW JV hopes to carry out.