Sajjan Jindal-led JSW Group in talks with Volkswagen to acquire majority stake in India unit: Report

Billionaire Sajjan Jindal-led JSW Group is in talks with Volkswagen AG to acquire a majority stake in the German carmaker’s Indian venture, Skoda Auto Volkswagen India Pvt Ltd, according to Bloomberg.

The deal, if finalised, would be a third automobile venture for the steel-to-cement conglomerate.

JSW Group already owns a 35% stake in JSW MG Motor India, a joint venture with China’s SAIC Motor. Steel magnate Jindal is gearing up to launch vehicles under its ‘JSW Motors’ brand. JSW Motors is setting up a greenfield EV manufacturing facility in Chhatrapati Sambhaji Nagar, Maharashtra.

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While top executives from Volkswagen and JSW have held meetings recently, several sticking points remain unresolved, including a valuation for the deal and how much capital JSW and Volkswagen will invest, the report said.

Rumours of a possible deal between JSW Group and SAVWIPL have been swirling for several months.

Volkswagen Group, which entered the Indian market through its Czech subsidiary Skoda in 2001, has struggled to make inroads in the world’s third-largest car market. The German carmaker accounts for roughly a 2% share of India’s passenger vehicle market, much lower compared to Japanese and Korean rivals.

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In a statement, Škoda Auto Volkswagen India said the company is always considering new business opportunities.
“India is a key market in Škoda Auto’s internationalisation plans. The company is leading the operation on behalf of the Volkswagen Group and its brands in the country. To fully explore the country’s growth potential, we are always considering new business opportunities and are evaluating various options to ensure the best possible solution to implement our strategy in the highly dynamic Indian market,” the German car giant said in a statement.

“Although we do not comment on market speculation, we reaffirm our commitment to delivering innovative mobility solutions that meet the evolving needs of Indian consumers,” it added.