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Sajjan Jindal's JSW Group is currently engaged in discussions with Volkswagen Group to establish a joint venture for electric vehicle (EV) manufacturing in India, according to a report by MoneyControl. The negotiations may soon enter an exclusivity period, during which both parties would refrain from engaging with other potential partners. These discussions reportedly commenced earlier this month and are still ongoing.
This development comes days after JSW Group inked an agreement with the Odisha government to establish an integrated EV and battery manufacturing project in Cuttack and Paradip, with an estimated investment of Rs 40,000 crore. This significant investment, slated to be rolled out over the coming years, marks the largest venture into electric vehicle capacity in India so far.
Meanwhile, Volkswagen is reportedly contemplating divesting its stake in its Indian subsidiary, Skoda Auto Volkswagen India. The German automotive giant is exploring collaboration opportunities with another automaker in India to bolster its EV manufacturing endeavours.
This proposed project with Volkswagen would be distinct from the joint venture already underway with SAIC Motor Corp, wherein JSW Group holds a 35 per cent stake. SAIC Motor currently operates MG Motor India, which offers two electric vehicles in the Indian market. Notably, none of JSW Group's listed companies are involved in the electric vehicle project.
In a statement to Business Standard earlier this month, Jindal shared his vision to revolutionise the automotive industry by delivering high-quality, technologically advanced electric vehicles that are both affordable and tailored for the Indian market. He said, "We will focus on high-end research to produce 'designed by and for Indians', and we seek to redefine the way people commute and power their lives by enhancing EV penetration."
Interestingly, Sajjan Jindal has harboured ambitions of producing cars in India since the early 2000s. However, previous attempts by the group, including establishing a unit under JSW Energy to make electric cars in 2017, faced challenges and had to be abandoned due to objections from shareholders.
