Volkswagen Eyes JSW Lifeline in India as Group Weighs Majority Stake
The deal could give JSW access to Volkswagen vehicle platforms and help the automaker fund its India business, which has about 2.5% market share.
- Volkswagen is in advanced discussions with JSW Group to sell a stake in Skoda Auto Volkswagen India Pvt., with the two sides working toward a potential agreement in the coming weeks.
- Despite operating in India for over two decades, Volkswagen holds about 2.5% of the passenger vehicle market, falling short of its 5% goal set for the end of the decade.
- The Sajjan Jindal-led conglomerate is seeking a majority stake in the venture, while previous partnership talks with Mahindra Ltd. fell apart early last year over development costs and culture differences.
- While top executives held meetings recently, several sticking points remain unresolved, including valuation and capital investment; negotiations may yet collapse, people familiar with the talks said.
- JSW operates a joint venture with China's SAIC Motor Corp. selling MG-branded cars and plans to introduce JSW-branded vehicles, gaining access to Volkswagen's platforms for potential global cooperation.
16 Articles
16 Articles
German carmaker Volkswagen is close to a deal that could change its presence in the Indian market. And it directly concerns Czech carmaker Škoda Auto. The German company has advanced in talks with Indian conglomerate JSW Group about selling a stake in its Škoda Auto Volkswagen India division. The aim is to gain a strong local partner, new capital and a foothold in a market where Volkswagen has long struggled to break through.
The Economic Times
Times of IndiaVolkswagen eyes JSW lifeline in India as group weighs majority stake
Volkswagen is in advanced discussions with Indias JSW Group for a local partnership. The German automaker seeks fresh capital and a stronger presence in India. JSW Group is reportedly seeking a majority stake in the venture. Several sticking points remain unresolved, including deal valuation and investment amounts. This potential agreement caps Volkswagen's years-long search for an Indian ally.
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