After MG, JSW To Help 2 Popular Automakers?

Skoda Auto Volkswagen India Private Limited (SAVWIPL) might be in talks with JSW-MG for a potential partnership. This would be one of the most diverse collaborations and might turn out to be beneficial for all the brands. So, let’s dive into the details about this upcoming collab!
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SAVWIPL In Talks With JSW-MG

While this is not an official negotiation and discussion, both these brands are simply interacting on the topic. Industry sources suggest that both SAVWIPL and JSW-MG are discussing a potential partnership involving the sharing of platforms, powertrains and investments. So, what is the reason behind Skoda VW’s interest in this deal?

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Why Skoda-VW Wants To Collaborate With JSW-MG?

Skoda-VW has been wanting to work with an Indian brand for around a year. The reason is that the SAVWIPL want to localise the production along with some capital for their India-focused platform strategy, with an investment of around 1 billion euros. This will allow Skoda-VW to benefit from a monetary standpoint, and the localisation of production will improve its scale in the industry. 

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How Does This Deal Benefit JSW-MG?

Think of it as a three-way street. SAIC owns MG along with brands like Chery. Skoda-VW already deals with SAIC in China in terms of transferring tech and sourcing models. If a collaboration including JSW-SAIC-Skoda-VW comes into play, SAIC will also have access to the Indian auto industry. Among all the geopolitical pressures, SAIC and its brands will have a better chance at bringing in their models into the Indian market. JSW and Chery (owned by SAIC) have also been facing trouble over the transfer of data and technology. Even though the JSW Group is working with MG Motor India, JSW is also working on setting up its own subsidiary for the auto sector, which can deal with Chery to produce its own electric car in the next few years. 

AutoCar India has said that, “A JSW-MG-SAIC-Skoda-VW framework, if it moves forward, would be among the most unusual cross-continental collaborations in India, combining European engineering, Chinese electrification capability and Indian industrial scale and market access under one umbrella.”

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