JSWVW TALKS CENTRE ON SAMBHAJINAGAR PLANT, TECHNO SAFEGUARDS

Talks between JSW Group and Volkswagen Group over a potential partnership in India have advanced, with discussions now focused on Skoda Auto Volkswagen India’s manufacturing facility in Chhatrapati Sambhajinagar (formerly Aurangabad), Maharashtra. However, negotiations have taken longer than initially expected. The two sides had earlier targeted August for signing an agreement, but differences over the transaction structure and safeguards sought by Volkswagen have delayed the process. A revised timeline could not immediately be ascertained. One of the key issues under discussion involves technology transfers and intellectual property, particularly in light of JSW Group’s existing partnership with China’s SAIC Motor through JSW MG Motor India. Senior Volkswagen Group executives recently visited India as negotiations gathered momentum. Volkswagen has acknowledged that it is exploring a local partnership but has not publicly disclosed the identity of the potential partner. The Sambhajinagar facility currently assembles premium vehicles across Volkswagen Group brands, including Audi, Skoda and Volkswagen. The group’s Pune plant, meanwhile, manufactures more localised mass-market models such as the Skoda Kushaq, Slavia and Kylaq, as well as the Volkswagen Taigun and Virtus. Audi is expected to be carved out of any potential arrangement involving the Sambhajinagar facility, according to sources. Volkswagen Group’s other luxury and ultra-luxury brands, including Porsche, Bentley and Lamborghini, are also likely to remain outside the proposed deal.