Skoda Auto Volkswagen India Private Limited (SAVWIPL) is reportedly in talks with JSW-MG for a potential partnership. This collaboration would be one of the most diverse and beneficial for all brands involved. While not an official negotiation, industry sources suggest that SAVWIPL and JSW-MG are discussing a potential partnership involving the sharing of platforms, powertrains, and investments.
Skoda-VW’s interest in this deal stems from their desire to work with an Indian brand to localize production and gain capital for their India-focused platform strategy. With an investment of around 1 billion euros, Skoda-VW aims to benefit monetarily and improve their scale in the industry. This partnership would allow them to tap into the Indian market and increase their production capacity.
On the other hand, JSW-MG would also benefit from this deal. As SAIC, the owner of MG, already deals with Skoda-VW in China, a collaboration between JSW-SAIC-Skoda-VW would grant SAIC access to the Indian auto industry. This would enable SAIC to bring their models into the Indian market, despite geopolitical pressures. Additionally, JSW has been facing challenges in transferring data and technology, and this partnership could help alleviate these issues.
The potential partnership would create a unique framework, combining European engineering, Chinese electrification capabilities, and Indian industrial scale and market access. As AutoCar India notes, “A JSW-MG-SAIC-Skoda-VW framework, if it moves forward, would be among the most unusual cross-continental collaborations in India.” This collaboration could lead to the development of new electric cars, with JSW working on setting up its own subsidiary for the auto sector to produce electric vehicles in the next few years.
Overall, the potential partnership between SAVWIPL and JSW-MG could be a game-changer for the Indian auto industry. With the sharing of platforms, powertrains, and investments, all brands involved could benefit from this collaboration. As the talks are still in the preliminary stages, it will be interesting to see how this partnership unfolds and what it means for the future of the Indian auto industry.