The record
Written from the 1 report below. Nothing here is unsourced.
- Volkswagen AG is in advanced talks to sell a significant stake in Skoda Auto Volkswagen India to the Sajjan Jindal-led JSW Group, with an agreement possible in the coming weeks, according to a Bloomberg report.
- The two companies have been discussing a potential partnership for about three years, but differences remain over the valuation of the company and the total investment each side would make.
- Volkswagen, which holds only around 2.5% of India's passenger vehicle market despite over 20 years in the country, is seeking a strong local partner to strengthen its position in the world's third-largest auto market.
- For JSW, which already sells MG-brand cars in a joint venture with SAIC Motor and plans to launch cars under its own brand, the deal would bring access to Volkswagen's modern vehicle platforms and technology.
What to watch next
- Whether the two sides agree on valuation and investment amounts, the key sticking points in the talks
- Any official announcement from Volkswagen or JSW confirming the deal, as neither has confirmed it yet
- Details of the stake size JSW would buy in the joint venture
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Named India · Germany · Mahindra-Mahindra · MG Motor · Shanghai Automotive Industry Corporation · Bloomberg · JSW Group · Sajjan Jindal · Volkswagen
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