The JSW Group, led by billionaire Sajjan Jindal, is reportedly in discussions with Germany’s Volkswagen Group to establish a joint venture for electric vehicle (EV) manufacturing in India.
What Happened: These discussions may soon lead to an exclusivity period, during which both parties would refrain from engaging with other potential partners, Moneycontrol reported, citing sources. The talks commenced earlier this month and signify a significant step towards collaboration in the EV sector.
Recently, the JSW Group inked an agreement with the Odisha government to develop an integrated EV and battery manufacturing project in Cuttack and Paradip, with an estimated investment of ₹40,000 crore.
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Meanwhile, Volkswagen is contemplating divesting its stake in its Indian subsidiary, Skoda Auto Volkswagen India, as it seeks to partner with another automaker in India to produce EVs, as per reports.
In December, JSW Group and MG Motor India, owned by China's SAIC Motor, announced a collaboration to develop EVs for the Indian market. Although the financial terms were not disclosed, JSW is set to hold a 35% stake in the joint venture.
The JV, with a speculated valuation of ₹8,000 crore, is anticipated to witness investments from JSW and potentially other financial investors in the future.
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