JSW and Volkswagen sign non-binding MoU for India JV

M&A · Partnership
โดย Just Auto·INDE·Read original
Summary · why it matters

JSW Group and Volkswagen Group have signed a non-binding memorandum of understanding for a proposed 51:49 joint venture in India's passenger vehicle market, according to a report by The Economic Times. The agreement initiates exclusive negotiations on valuation and other terms, with a target final binding agreement by the end of 2026. The proposed alliance would be housed in a new entity involving JSW and Skoda Auto Volkswagen India Pvt Ltd, separate from JSW's existing ventures, including its partnership with SAIC Motor. The joint venture would initially cover the eight Skoda and Volkswagen models sold in India, with potential future inclusion of Volkswagen's luxury brands Audi, Porsche, Lamborghini, and Bentley. A key issue in the valuation is Volkswagen's potential tax liability of about Rs200 billion ($2.10 billion) related to alleged customs duty circumvention, which JSW is unlikely to assume.

Impact on stocks 4

Consumer Discretionary▲ · 2 stocks
Volkswagen AG
VOW
▲ PositiveCapitalrelevance

Volkswagen signs non-binding MoU for a 51:49 India JV with JSW, advancing its passenger-vehicle expansion plans.

Electrification & Mobility▲ · 1 stocks
Others▲ · 1 stocks

Off-coverage companies 3

JSW GroupPrivate▲ Positive
Capitalrelevance

JSW Group signs non-binding MoU to form a 51:49 India passenger-vehicle JV with Volkswagen.

Skoda Auto Volkswagen India Private LimitedPrivate▲ Positive
Capitalrelevance

Skoda Auto Volkswagen India would house the proposed JV entity covering its eight Skoda and Volkswagen models in India.

Bentley Motors LimitedPrivate± Mixed
relevance

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